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There are so many options when it comes to your business bookkeeping, and you already know you need software to record your income and expenses. The hard part is knowing which program to pick. This guide walks through how to choose accounting software for your online business — the factors that actually matter, so you invest once and don’t have to switch later.
Start by making a list of what you truly want in a bookkeeping program. Once you have that list, you can research the options against it. Things worth asking:
- Does it import all of my bank transactions?
- Does it help with inventory?
- Is the system cloud based, or something I install on my computer?
- What is the help desk like if I need assistance?
- Can I send invoices and collect payments through the system?
- Does it fit my budget?
Your bookkeeping software isn’t something you’ll want to switch easily once you’ve committed, so it’s worth weighing these factors carefully up front.
Cloud vs. desktop: do you want an online or offline program?
Both options exist for bookkeeping, and the right one comes down partly to preference and partly to how you work.
When you use a cloud-based accounting system:
- There’s nothing to install on your computer.
- You can use it anywhere in the world, from any computer — just log in.
- You never have to worry about upgrades or updates; they happen automatically.
- Your data is backed up on the provider’s hardware, so backups aren’t something you have to remember or make space for.
- You can easily give a team member, accountant, or bookkeeper access to see everything without hassle.
When you use a desktop-based or offline program:
- You don’t always need an internet connection to use it.
- You need enough space on your computer to run it.
- You’ll likely have to save files to a jump drive to hand to your accountant.
- Your team has to use the specific computer the program is installed on.
- You can’t access it from anywhere in the world.
- You’ll often record every transaction by hand instead of importing your bank feed.
In today’s internet age, a cloud-based system is usually the better choice. It’s very secure, with bank-level encryption, and it makes running your business finances far easier for everyone involved.
What is the cost of the program?
You probably have a budget in mind for bookkeeping software — and I hate to break it to you, but the right program is often more expensive than you’d like. This is a genuine cost of doing business and something worth investing in. The right software makes both your taxes and your day-to-day business life easier.
Don’t downgrade to a cheaper package just to save a little now. Choosing the wrong option to cut costs almost always ends up costing you more down the road.
What does your accountant or bookkeeper recommend?
If you won’t be the one using the software day to day, consult the people who will. Buy something your staff, accountant, or bookkeeper can’t use properly, and you’ll likely end up paying again to get the right program.
I once had a potential client ask, during our first call, what I recommended and what to avoid. She chose the exact program I told her to stay away from — the wrong fit for her business. We didn’t end up working together, because she wasn’t ready to hand off the money side, even though she didn’t want to do it herself either. When you don’t yet understand what the accounting terms mean, you don’t always know what you need. So ask for advice from a professional — and actually follow it.
What support is available?
Check what support the software offers and how accessible it is. Some programs only provide support at a certain pricing tier. Others offer support, but only during specific hours and days — not 24/7. As a business owner, you’ll be working at all hours, not just when a help desk happens to be open, so support availability matters.
How user friendly is the program?
You want software that’s intuitive and easy to learn. You may not understand everything right out of the box unless you have an accounting background — but you need a program you can grow comfortable with over time. The clunkier it is, the less you’ll actually use it, and the more you’ll waste money paying for something that just sits there. Make sure it’s something you can realistically learn and use regularly.
Will the program scale with your business?
Is it built only for very small businesses, or will it keep up as you grow? Many bookkeeping programs now scale with you and support larger and more complex businesses over time — but some don’t. Look into this before you commit, so you’re not forced to migrate right when your business is gaining momentum.
Choosing the right bookkeeping program for you
Not every bookkeeping program works for every business or every business owner. You need one that genuinely fits you and how you work. When a professional gives you advice, heed it — don’t go against it just because you don’t love the price. Switching programs a few months in is almost always more costly and more painful than choosing a slightly pricier program that’s right from the start.
This article is for general educational purposes only and is not legal, accounting, or tax advice. Always consult a qualified professional about your specific situation.