Choosing the best
small business accounting software

Whether you work on a Windows PC or a Mac, the best small business accounting software for you will depend on your particular requirements and financial knowledge.

If you are paying for things with cash, and being paid in the same manner, then two simple lists in Microsoft Excel, along with your bank paying in book, may suffice.

So what do you need?

Do you order materials, or supplies, and pay for them later? Do you need to create an invoice for your customers? Are you are charging by the hour? If so, you will need to check the features of the software you investigate. Will you need to present your figures to the accountant at the end of the year? Or to a bank manager to ask for a loan?

For the type of part-time income generation we are discussing on this site, it is unlikely that you will need to get involved with anything too complicated, so let's look at what we DO need.

Below, you will find 5 easy steps to consider when evaluating what would be the best small business accounting software for your needs.

1. Keep it simple...

...or it won't get done!

You do not necessarily need to invest in the biggest and best. Small business accounting software can be very complex, and if you don't understand how to use it (or have anyone to ask for assistance), then you might find yourself procrastinating!

2. Do they offer support?

One of the most important things to look for, when researching the best small business accounting software, may be the level of support available.

Does the company have a forum, where you can ask questions and get advice from other users?
Is there a free helpline, so that you can go direct if needs be?
Have any independent books been written on using the software?
Do they have a free trial available so that you can get hands on experience before you commit to using it?

3. Does it look good?

I know that might sound silly, but a program that is attractive is more likely to be used regularly. If you cringe, or tense up every time you open it, you will find many, many reasons to avoid using the software.

4. Do you need to read the help file?

When I was learning how to use my first computer my husband said "If you need to look at the help file then it is not the right software for you".

In other words you should be able to open it for the first time and be able to start using it straight away.

Some software comes with wizards or guides that lead you through the setup process. Others may have pop-up help that offers assistance when it is needed.

As long as what you need to do is obvious and instinctive, then you and the software should get on well together.

5. How will you use the data?

It is important to keep a record of your earnings and expenditure for tax purposes, of course. So you may want to check out if the software you are thinking about buying will be compatible with whatever your accountant uses. It will make it much easier for him to produce your final accounts if he can import your figures into his computer.

Presentation of your figures may also be necessary if you need to ask for a loan from the bank, or to show possible investors at a later date.

It is wise to think ahead and plan for success early on. After all, starting a business from home doesn't mean it always has to stay there!