When it comes to business and, in particular, the accounting aspects of it, there are different accounting systems that are suited to different companies. Choosing an accounting system for your business is all about “horses for courses”, to quote a well-worn saying.
Some work better for some companies than for others, and no one package is better than the other.
The accounting systems available to businesses today are many and varied. They range from small, free apps to extensive and, often, very expensive systems.
What is an accounting system?
An accounting system is a method or system that records all the business transactions that occur in a particular business.
Although some companies may seem more complicated in terms of how they are set up than others, all of them have one thing in common: they have money coming in and money going out.
And all of these transactions have to be recorded. This is where the accounting system comes in.
Much like a lot of technology, the basic function of any accounting system is exactly the same. They all record the transactions according to international accounting principles.
These principles have not changed since the introduction of the double entry accounting.
Let’s take a cellphone as a way to illustrate this concept. All phones can do everything the others can do. They all make and receive calls, send messages etc. The difference lies in the way it looks or the user experience.
How do you choose an accounting system?
It is simple. Find out what you require in order to run your business more efficiently and effectively.
Take a plumber, for example. A plumber is always out of the office and paperwork is not his strong point.
He will benefit most to run his business from his phone or tablet because he needs to produce quotes and invoices while at the client or on the road. So, we would rely on an accounting system that has an app that he can use to quickly send quotes and invoices from his mobile device.
A fast food outlet is different. The manager would need a point of sale system at every cashier point. This will need to integrate with the stock system too. For this type of business, an app or mobile solution is not suitable.
The cost factor
The main factor in choosing a system is always the same – “how much does it cost?”
No matter what size company, this is always the first question.
An accounting system needs to needs to add value to your business by making it more efficient.
This will save your employees time in doing their tasks on a daily basis. Remember, time is money.
There is no right or wrong answer when it comes to choosing your accounting system. It’s a case of what you need and what your business needs to run at the optimum level.
Accounting systems should save you time so you can do what you are good at.
But remember . . . it’s about picking the right “horse for the course” when choosing an accounting system for your business.