2022-2023 Tax Planning Guide
VIEWpoint Issue 1 | 2022
Brief Insights | Meeting Provider Relief Fund Reporting Requireme...
Your accounting software is an investment that protects and maintains the financial health of your business. Finding the right solution is critical, but how do you know where to start with so many options to consider? Before researching accounting software options and asking for demos, establish a budget. If you set financial expectations first, you’ll be able to quickly rule out systems beyond your budget.
Follow these three steps to identify your company’s budget. These exercises will help you understand your current setup, evaluate the current and future impacts on your budget and how the right investment may boost your bottom line.
Budgeting for financial software is complicated, so you need to start by analyzing your current expenses. Think about everything involved with running your financials, not just the cost of the software. Consider the following:
While in this stage, think about the business risks you may face if nothing changes. Keep current system costs on hand. You may want to compare these expenses and future predictions to your final software recommendation.
Now that you’ve analyzed your current state and set a budget expectation, begin exploring your options. During your research, make sure to review the long-term and short-term costs associated with each financial management system. Again, go beyond the cost of the software and licensing.
Think about implementation costs. These often include data migration and integrations with your current business solutions. Consider the time you’ll need to train staff and any relevant costs.
Will you need software support packages? Do you plan to make improvements or purchase add-ons at a later date? If you hire a lawyer to review contracts, include their fees.
Are you looking for accounting systems to vet? We suggest Sage Intacct. It offers advanced functionality, real-time reporting and many features that drive improved business performance.
First, write down the needs and priorities of your business. Then, brainstorm the impact, benefits and risks of the accounting system. Will it meet or support any of your business needs? Will it change your workflow? How? What processes may need to change? Does the software present an opportunity to be more efficient and effective? Reallocate resources? Improve performance?
If you can answer these questions, you can begin to understand and forecast the business value of the software.
By starting your software selection process by setting accurate expectations for your budget, you’ll feel more confident negotiating terms, providing a recommendation and making the investment. Have questions about establishing your accounting software budget? Contact Doeren Mayhew’s outsourced accounting CPAs today!
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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