What is A Custom Accounting Software System
Not every small business is the same—they have different needs, challenges, and solutions, which includes accounting. This is one of the reasons you need to implement custom accounting software that’s designed for your small business. Custom accounting software molds to the needs of your startup, allowing you to automate many arduous tasks that typically fall on an accountant’s shoulders. Standard accounting software is more of a one-size-fits-all service that in reality, may not suit every business. Standard accounting software can be applied to an existing system but cannot be customized to fit a business’s specific needs. This is where custom accounting software comes into play. If you decide to customize your accounting software and integrate it into your business, there are a few key steps you will need to take:
1. Research: Start by thinking about your business’s needs and conduct research to determine what functions are required to help with those needs. You will want to consider current and future challenges that your business may face.
2. Design: Once you conduct research and determine your needs, a team of software developers will create a design template. They will work alongside the rest of the company to create an outline of the product that fits your expectations.
3. Software development: Once a software development company has a blueprint of the design, they can create the product, which can either be an MVP or the final design. The development cost can be high, as developers will have to continuously assess the integration and delivery of the software to ensure it is properly designed.
4. Deployment: After developers test the software to ensure it works, it is ready to go and can be deployed to your company’s system.
5. Maintenance: It’s important to have a support team that can provide regular maintenance of the software as time goes on in case something goes awry.
Now that you know the meaning of custom accounting software, let’s move on to some examples.
Examples of Custom Accounting Software
There are varying types of software that may work for your small business accounting needs. Here are the most common custom accounting software examples:
Spreadsheets: Using spreadsheets, such as Google Sheets and Microsoft Excel, is a simple way to organize, sort, and calculate your data. Spreadsheets are ideal for accounting on a smaller scale, as they’re easy to navigate. However, someone needs to physically access the spreadsheet, leaving a chance of human error, which is not ideal for larger businesses that need to access more data.
Accounting software apps: Commercial accounting apps are ideal for midsize businesses. These accounting applications generally come with more functions that can handle most accounting needs. It makes it easier for accountants to create and send reports, access data, monitor cash flow, and handle invoicing and inventory management, among other tasks.
Enterprise resource planning (ERP) software: Enterprise accounting software is ideal for large businesses that work with expansive databases. These companies need to use an accounting program that can handle a significant amount of information. It must also have the capability to perform various tasks, which is exactly what an ERP solution can do.
Benefits of implementing a custom accounting system
Following are the benefits of implementing a custom accounting software:
Reduces human error: There is always a chance for human error when completing tasks ourselves. However, using a system that can handle accounting on its own can reduce the likelihood of common mistakes. A custom account system can save your business a lot of money in the long run.
Saves time: Think about how long it takes to do things by hand. Even the most skilled accountant needs to take their time, especially with tasks like data entry. Fortunately, a custom accounting system does the hard part for you, which will save you time that you can then delegate to other tasks.
Manages payroll: Payroll can be a tedious process, but it’s necessary for every business. A custom accounting system can manage payroll for you, saving you time and effort.
Handles taxes: Handling taxes can be complicated. A custom accounting system can take care of taxes by performing common tax calculations, determining tax-deductible expenses, and inputting data into various tax forms.
Takes care of banking: For example, a custom accounting system takes care of banking by managing checks, setting up direct deposit to bank accounts, and monitoring credit.
Offers a high return on investment: While the initial development cost of implementing a custom accounting software can be high, it will likely end up paying off. With standard accounting software, there is a chance that you will need to buy extra hardware to run the software effectively, which will end up costing you more money. Custom accounting software allows you to choose the features you need that fit within your budget and provides data you can access in real time.