If you have begun investigating accounting technology options that fit your business needs and budget, you have come to the right place for a pep talk.
How did I know that you might be a little stressed out?
The search result for ‘how much should you pay for business accounting software’ is pretty intimidating.
I’m glad you’re reading this because I have done some digging into these search results and have summarized my findings in a way that will save you time, money, and eye strain.
How much should you spend on business accounting software?
The phrase ‘should pay for accounting software’ implies that there is a right answer and that assumption is just plain false.
Every business has its own set of accounting needs, as you well know. There is no should spend when investing in optimizing your accounting operations. There is only could spend.
How much is too much to spend on accounting technology?
To answer this question, you would be wise to a) determine your accounting needs and b) research what package is most cost-effective for your company.
You want to avoid paying for a system that won’t scale with you.
A growing company will want to consider data storage capabilities and the number of users a solution includes. Also, scalable solutions for growing small businesses and midsized companies will offer greater automation to streamline functions such as purchasing, billing, payroll, and inventory.
Typically, entry-level accounting software limits the number of transactions you can process or employees you can add. It’s tough to know when growth will occur sometimes but, it is important to consider whether or not the software provider can offer you features beyond accounts payable, accounts receivable, general ledger, invoicing, online payment processing, inventory, and payroll.
Cloud accounting, Software as a Service (SaaS), and ERP systems that cater to mid-sized businesses offer pricing that enables customers to pay a flat, monthly fee and turn on or off modules to fit your changing financial management, business operations, and customer relationship management needs.
How much are your competitors spending on accounting software?
Finding pricing for options is easy, uncovering how much companies like yours spent on an on-premises or cloud accounting system is tougher to accomplish.
You could contact your local nonprofit SCORE chapter to speak with a small business mentor who is likely to have a broader idea of which solutions similar companies in your area are investing their accounting dollars in.
Experts that know accounting tech may not know your industry or your business. It is important to seek advice from those who know their own companies position relative to their market and their companies expectations for growth, like a CFO.
CFOs weigh-in on accounting software
Aman Mann, CEO of Procurify, a purchasing software innovator, focused on the mid-sized companies, asked CFOs what they look for in accounting technology. As you might guess, the flexibility to add and drop specialty features to core software functions was high on the list.
Remember, there is more to the cost of accounting software than the price tag. Factor in the true costs of accounting software for your growing business to make sure that you are getting a true return on investment.
inDinero was founded on accounting tech and business expertise. We can’t wait to match the best accounting tech to your business needs. Ask an expert, today.