To Upgrade Or Not To Upgrade, That Is The Question

To Upgrade Or Not To Upgrade, That Is The Question

As we are quickly approaching the end of the year, you may be thinking about whether or not it is time to upgrade your financial software. The good news is you are asking yourself this question at the right time. This is the perfect time to estimate your company’s financial software package to ensure that you start your new year on the right track.

Trade Toolbox
In an effort to perform your job well you must have the proper tools for the trade. For example, it would be highly doubtful for a plumber to arrive at your home to fix a plumbing issue without having the proper tools to help resolve the issue. The same is true for the financial aspect of your business. Having the proper financial software obtainable to assist you in running your business is a necessity to have in your toolbox.

Track Record
There is a wealth of incredible financial tools on the market such as Intuit’s QuickBooks and Peachtree’s First Accounting. These are just the top two financial software packages on the market but you can research other tools that are appropriate for your industry and budget. However, tools are an basic component to your daily financial requirements when you are running a business including but not limited to tracking inventory, accounts payable, accounts receivable, sales tax and payroll. Record keeping is your company’s financial roadmap for success. These records tell you where you are and where you are going in your business. Reports are like your business’s financial check-up at a to peek briefly. These reports can show you how well your business is doing this year in comparison to last year, your growth, what you are spending the most money on, who you owe and who owes you. Record keeping is the foundation of your business and can be used to obtain finances from edges, investors and grants.

The Upgrade: Online vs. Desktop
Hopefully you have graduated from using the large hard bound paper-based general ledgers and are using some form of computerized accounting software. How do you determine when it is time to upgrade your current accounting software? According to Intuit, you should upgrade your QuickBooks software every three years. Every year a new upgrade hits the market with new features to help make your business finances run more efficiently but you generally do not need to upgrade every year. And to further complicate your upgrade decision, there is another option to upgrading using cloud-based accounting. Carefully review where you are headed in your business and your budget to determine which upgrade is best suited for your company. Review the advantages and disadvantages of each accounting software package whether it is an online upgrade or upgrading your desktop version.

If you have decided to tackle your record keeping on your own, you must have the appropriate tools to manager the task. The ability to create financial reports seamlessly to monitor cash flow, financial ratios, and the general health of your business are basic to ensuring you are heading in the right direction. No matter what financial software package you select to use for your business, always be sure to back-up your financial data.

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