5 Mistakes People Make When Choosing an Accounting System
Choosing an Accounting System is a Crucial Step
Account is the backbone of any business organization. So, choosing your accounting system is the most crucial step towards a transparent account and of course a better business.
In the long past manual accounting was the only process to maintain a history of your business transactions. But it was not only a slow process but also was very prone to errors. But today, hardly any organization, apart from the small ones, maintains manual accounting; instead they use accounting software.
So, are they very happy with these accounting applications? If you perform a short survey, you’ll know that most of them are trying their best to adjust with the problems and drawbacks of their application. But, remember, you’re in fact compromising with your business.
Didn’t they make enough research before purchasing their accounting system? In fact, in most of the cases, they aren’t much aware about what exactly they should ask about an accounting software. If you don’t want to repeat the same mistake, here are some guidelines for you.
Unsuitable User Interface
Do all accounting software operate the same way? Not really. The features may be similar, but the user interface tends to differ. Small details such as language can easily be overlooked, especially if you intend to expand your business overseas.
Many Singaporean businesses grow towards China and Hong Kong, which is why Kingdee KIS Accounting offers not only English, but also Traditional and Simplified Chinese interfaces.
Impractical Logic and Database Structure
Though we are not software developers, but we should know that every software works as per the logic structure. The better the logic will be, the better outcome you will get. Often it takes several years to design a software with perfect, intelligent and error-free logical background.
So, ask your software provider to explain the logic of the application. Beware! Don’t be fooled by the geeky terms. Compare it with other accounting software and judge which is better for your business. Never purchase a software without knowing its logic structure.
Also, find out what type of database is being used. While it may seem impressive when a developer claims to have its own developed database, it may not be well-designed, clogging up the system and significantly slowing it down. Always look out for reliable database integration.
For example, the Kingdee KIS Accounting integrates with Microsoft’s My SQL, which is strongly reliable even as a database fills up.
No Taxation and Localisation
Sometimes, business owners get too excited about the extensive list of features in an accounting software that when they jump into a purchase, they later realize that it was a big mistake, because taxation and localisation is not available in the software!
If you’ve tried filing GST reports or import duties manually, you’ll understand that it takes LOTS of time. You may even miss out on reporting some of the taxes, which can seriously mess up your accounts. So always check if the accounting software you’re purchasing supports at least the taxation of the country your business is operating in.
A bare minimum is that it needs to be able to file GST reports. If you’re intending to expand your business to other countries out of Singapore, make sure that your accounting software supports the taxes of that region too.
No Backup Option
Have you ever thought, what will happen if one fine morning you come to know that your software has crashed? Yes, it can happen for several reasons. In such situations you’ll feel just helpless if you haven’t kept any backup of your data.
But this doesn’t mean you need to be tech-saavy to do a backup. Always check how a back-up can be made in your accounting software. For example, Kingdee KIS users can easily backup the database into an external thumb drive.
Such convenience means that you don’t have to be a genius to perform regular back ups, and you don’t have to be worried when your computer crashes!
No Option to Upgrade
It’s common that accounting software goes through upgrades over time, to meet the demands of businesses and make improvements and bug fixes. Failure to keep up will cause an accounting software to be phased out eventually, losing to newer and advanced competitors.
Also, if you were to switch to another accounting software, this can be a hassle as the database may not be supported in the newer software. Thus, it’s a wise choice to ask if an accounting software offers the option of lifetime updates.
Because Kingdee Software Group has been around for years and is one of the leaders in business management solutions, it’s unparalleled technological advancement enables the company to keep up with market trends. Thus, should you choose to implement the Kingdee KIS Accounting into your business, you can rest assure that updates will readily be available.
If you want to avoid these mistakes or think you may already dropped into a pithole by comitting any of these, we can help you!
Talk to us at Reach Technologies and our team of experts will help you make the right choice.