5 Steps for Selecting the Best Accounting Software for Your Start-Up

Handling the accounting records manually can be intimidating in this digital age. Even if you are using the spreadsheets, you may not get the desired level of efficiency. As a start-up business, using the accounting software with automation features will be much helpful. It will reduce the time spent on redundant data entries and bring higher efficiency in your accounting systems.

Mostly, the accounting software is easy to use even for those having no or little experience of maintaining accounts. There are many companies offering the best software for bookkeeping and accounting. However, it must be selected according to your requirements. Here are the steps that must be considered in this regard:

Understand Your Individual Accounting Requirements:

The requirements of software in your start-up business are centered on two major factors, viz. your budget and software features that your business requires. The accounting software offers much technical functionality for management of your finances and accounting processes. It provides multiple features like ease of operation, automation, tax preparation, estimate creation, multiuser interface, mobile access, and lots more. However, you should choose the features specifically required by your business.

If you are in a budgetary crunch, you can opt for the free version of accounting software offering some basic functionality. You can later upgrade to the paid version offering comprehensive solutions.

Take Recommendations and Referrals:

Before investing in any software for bookkeeping and accounting services, it is always advisable to ask for referrals and recommendations from the other business owners in your industry. They can offer you better advice about different offerings and vendors in the market. You can also seek help from the online review sites for getting proper suggestions on this selection.

Check the Customer Services and Tech Support:

Using this software may seem easier but handling technical glitches, most certainly, is not. It requires expertise and experience of the highly skilled developers working extensively in these products. Hence, you must ask about technical support offered by the vendor. Secondly, their customer services should be available 24/7 to help you overcome the issues that hamper your accounting capabilities and efficiency.

Ask For A Free Trial:

Once you have narrowed down your options to a selected few, it’s time to ask for a free trial from each vendor. This will help you assess their software on various parameters and see if they can suffice all your business requirements. Mostly, the developers offer this option to sign up for a free trial on their portals. If they don’t make such an offer, you must reach out to them and ask for one.

Indulge Your Accountant In Selection:

Accounting software is designed to simplify the job of your accounting and bookkeeping department. It can’t replace the accountants. In fact, their suggestions matter a lot while making this decision. Hence, ask for their recommendations because they have dealt with many such software solutions. They can tell you which software serves the accounting needs of your startup in the best ways.

At Infognana, we have developed an advanced accounting software solution that caters to the multiple needs of our clients. Our accountants will help you choose the right software based on your business needs.

How to Tackle the Long Overdue Invoices?

Nothing can be more nightmarish for a small business than the long overdue invoices. A healthy cash flow is all that you need to stay in the business. But, the reality is that invoices are seldom paid on  time and you are in catch 22 every time your own bills become due.

The problem is aggravated by the fact that you may not be comfortable chasing the money and asking your clients frequently about payments. In such situations, you have to think rationally and tackle the unpaid invoice without being tongue-tied. Here are some simple fixes to do that:

Make your Payment Terms Clear:

Before you expect anything from the clients, it is essential to make clear payment terms and stick to them. You can either go for a 30-day payment term which is sort of a norm for many industries or opt for an immediate payment. Set the rules according to your requirements of cash flow management so that your business is not affected. At the same time, it is significant to explain these terms of payment to the client as well.

Consider Charging Interest on Late Payments:

Late payments can be penalized according to the government rules and legislations as well. It is termed as Statutory Interest that may go up to 8% on the late commercial payments along with some debt recovery charges. You can make your own set of rules for charging interest. It can be extra 2% for payment after 30 days or a 3% delayed payment fee for overdue invoices. The choice is yours. And also, make it known to the client before you start working on the project.

Don’t Chase Hastily:

After the 30-day payment period lapses, don’t get reckless. Have patience and allow a grace period of 2-3 days before you pick up the phone and talk to the client. When you call them up, maintain a friendly tone because you may not like to lose a client with your rudeness. You can also send some  friendly reminders through emails with a warm tone. Attach a copy of the invoice with this email. If it doesn’t work, send a statement citing your payment rules and charges for late payment. This strategy mostly works. Picking up the phone and charging interests should be your last resort.

Consider Upfront Payment:

If none of these work and you want to get rid of late payments forever, this is the best thing you can do. Ask your clients for an upfront payment. Don’t start the work until they clear the invoice. Convey your expectations to the client even before taking up the project. At the time of discussing the work details, talk about the payment terms also to avoid any misunderstanding later. You can also stop working on their project at any point if the payments are not cleared within the stipulated time.

Offer Discounts:

You can make the deal lucrative for the clients by offering discounts on upfront payments. Tell them that you will offer 10% discount as a ‘thank you’ gesture for advance payments.

In this context, you can also seek the automated and professional accounting and bookkeeping services at Infognana. We can take care of your accounts while you take care of your business.