How Expensive Should Your Accounting Software Be?

Accounting for your financial transactions is an absolute must. While thankfully the days of performing each and every financial transaction by hand (in duplicate!) is gone, there are so many types of accounting software you can now use that it is difficult to pinpoint a specific brand or type.

Accounting software has evolved over the years to a point where you can get a very powerful software package for as little as a few hundred dollars. But is cheaper accounting software the best for your business?

The Basics

If your business is truly “small” in the sense that your revenues are just a few thousand a month, you may certainly get along well with a basic accounting software package such as the popular Peachtree or Quickbooks Pro. These affordable solutions offer the very basics most small businesses need, such as accounts receivable/payable, general ledger, payroll, customer databases, and inventory.

These affordable accounting packages will keep your business records clean and provide easy-to-read reports. Most types of basic business software run from $200 to $500.

Fixed Assets

Most accounting software packages have fixed asset accounts. However, if your business is filled with multiple types of fixed assets, a more advanced solution may be needed to keep track of every depreciation dollar.

Cost Accounting

If you are a small manufacturing business, you may need a little more accounting power to help you with cost accounting. Cost accounting helps you determine where every dollar is spent in the manufacturing process, and it is a helpful way to know a near-exact cost of each product made. More advanced software packages in the $500 and up price point may be the choice for you.

Advanced Reporting

All reputable accounting software packages come with some form of reporting. However, the basic boilerplate reports sometimes don’t provide what you need. If you require more advanced control over your accounting data reports, consider a higher-end brand of product.

Multiple Licenses and Support

If you utilize accounting software with a variety of employees, support and multi-licensing is highly important for the software you use. A higher-end accounting package upwards of $1,000 to $2,000, with additional monthly support and licensing fees that may be required.

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