How to Select Accounting System for your Company in UAE
UAE business environment is very competitive and in a short span of time large no. of business transactions are processed. Now we have two options where one option is to hire more staff which may increase cost of operation and delays in processing. The other option is to consider efficient accounting system which can process transactions fast as well as handle large no. of transactions with less staff input.
What is Accounting System?
Before selecting an accounting system we need to understand basics of accounting system. Accounting software is a computerized system that store and maintain records of all business and accounting operations comprehensively. Accounting Software is designed to record all kind of accounting transactions such as invoices, receipts, purchase orders, delivery notes and payments and also manage general ledgers and reports which include accounts payable, accounts receivable, payment report, payroll, statements of income and financial position.
Accounting software can provide small businesses with many efficient ways of managing daily financial tasks and provide management and owners with useful information to help analyze business performance. Mostly business owners make costly mistakes by investing in accounting software that are not relevant to their business situation, and then they struggle to make the software work and end up in investing more cost by converting or changing to different software.
The most important aspect that business owners should consider while considering accounting software is the relevancy of the business scope i.e. trading, manufacturing, retail etc. and what accounting tasks the software should ideally perform. In addition to basic accounting transactions there are other aspects to consider i.e. payroll, inventory management etc.
Cost is also a very important factor while considering software packages. While considering cost, take into account fees for upgrades, annual maintenance & licensing and support. Compare technical support and annual maintenance packages and also consider additional fee for support packages into the overall cost of the accounting software. You should also consider the implementation and setup cost in-case your staff is unable to implement the new system. Sometimes accounting system is installed by vendors and their technical team but there are some other aspects to consider as it requires good accounting knowledge to apply inventories, suppliers and customers listing, chart of accounts etc. and you may need to hire external accounting professionals which may bear additional cost.
Accounting systems need to be efficient and user friendly so that your employees can easily learn to use it. When choosing accounting software, you must take into account the education level of your employees and the difficulty of the software selections. Some accounting software requires high-level accounting knowledge for setup and use like double entry system, while other software packages use tabular and selection based forms and reports which are easily understandable by employees, management and owners who do not have accounting education or experience.
Access and Portability
If you have a single business location and do not expect that to change, any accounting package that installs on a single computer or local server is suitable for your business. But if you are planning to have multiple locations then you need to consider how employees from remote locations will access the accounting software, if needed. It is quite expensive to have exchange server and staff to manage such network, additionally it becomes too complicated to process such operations or troubleshoot when you have problems. Most of the time complete organization operations gets stopped if exchange server is down. In case of small business with multiple locations, or employees working from remote locations, web-based software may be the best choice.