Having accounting software lets you ensure financial viability for your business. The correct solution will also help you streamline administrative tasks and bill clients in a prompt manner. But, before buying one, you must know about the best online accounting software for businesses. Here is how accounting software can be classified.
Some businesses prefer to use spreadsheets to manage their finances. It is an inexpensive method and can be customized in any manner. But, they are not the best solutions as they are error-prone, and information can be entered incorrectly. A good alternative is to use free online billing software. But, if your organization doesn’t deal with high transaction volumes, spreadsheets are great.
2. Commercially-Available Software
Commercial off-the-shelf (COTS) software is the most commonly used accounting Software throughout the world. However, you can customize it to a certain extent and use its multiple layers of error detection capabilities to add the correct information. Besides, the best online accounting software for businesses can help you generate comprehensive reports.
Usually, these solutions are made for specific industries and for a set target audience. You may need the expertise of consultants to install and maintain the software. These models let you pay a monthly fee if you don’t want to make an upfront purchase.
3. Enterprise Resource Planning Software (ERP) or Enterprise Accounting Software
These solutions assimilate information from all your departments and organize it in a single database. This lets you eliminate the need for multiple solutions. Unfortunately, while this is one of the best online accounting software for small businesses, it can be very expensive. As a result, The software is only used by enterprises or large organizations.
4. Custom Accounting Software
These kinds of solutions are specially developed for a company. Typically, this approach is taken when an enterprise doesn’t want to use free billing software and needs a COTS or ERP. However, using these solutions is uncommon, as they require more maintenance and tend to have bugs.
Difference Between Enterprise Accounting and Commercial Accounting
Both the software have their advantages and disadvantages. Here are some of the differences between enterprise accounting and commercial accounting.
1. Core Functionalities
ERP software offers 10x more functionalities as compared to commercial accounting software. An ERP solution lets you have a 360-degree view of your business functions. These include sales, quality management, CRM, HR, mobility, financial management and reporting, inventory management, and sales.
2. Industry-Specific Needs
Software for Commercial accounting comes with limited ability and is not a great option when it comes to taking care of distribution and manufacturing processes. At the same time, ERP solutions are rife with such tools and offer cutting-edge inventory management tools.
ERP solutions will help you reduce labor costs and make better decisions. Moreover, these solutions can help you automate core business processes. Be it production planning, supply shipments, BOMs, ERP solutions, let you manage it all!
Many commercial accounting solutions are not GAAP compliant. This software flaw can be detrimental to your organization’s health. Thus, it is suggested that you use ERP solutions that offer GAAP compliance.
4. Sales & CRM Functionality
When we compare free online billing software and ERP, the former is not a great option when it comes to managing sales and order processing. But, at the same time, the latter offers CRM modules that provide you access to updated contact information and even let you analyze previous communications.
5.Real-time data and mobility
Enterprise accounting solutions let you assimilate all the financial data under a single platform. Besides, they eliminate the need for having different tools. Instead, you can easily access company-wide data using your mobile device and leverage the power of real-time intelligence to take your business ahead.
This is how the best online accounting software for businesses and online software can help you manage your finances. You can test out from a plethora of options and then make a final choice. ERP’s are ideal for enterprises, whereas commercial accounting software is great for small and medium-sized businesses. Custom accounting software can also be used in same cases.
Yet to try out accounting software for your company? Then, let us help you choose one!