What’s the Real Cost of Your Company’s Accounting Software?

Many small businesses choose a simple accounting program and immediately start inputting their company information. As they go through the day-to-day operations though, many begin to realize their accounting software isn’t specific enough to complete all the necessary tasks, which can result in additional purchases, hiring outside experts, and wasting precious time and resources. How much is your accounting software costing you? Use these tips to see if you need to find a better program.

What's the Real Cost of Your Company's Accounting Software

Accounting Software is only as Good as Your Accountants
While it’s great for a business to manage their own finances, if you don’t have a properly trained staff you’re doing your company a disservice. Hiring two people when one could effectively do the job often happens as a company grows. Sometimes, all you need is the right person or the right software. If your company receives grants, you might need someone who knows how to track those grants, comply with federal effort reporting guidelines, and monitor and bill core facility services. Grant account software programs like IT Works can help you to better manage this information, and take what might require an entire team of workers down to a single person job. Your company loses money when you don’t have the right software to perform the job.

Hidden Fees and Charges in Accounting Software
Often, you purchase what you think is a full-serviced accounting package and find the extra features you need require a whole new upgrade. Accounting software can be complex and not as simple as the advertisements might suggest. You’re likely going to have to pay for annual subscriptions, licensing fees, enhancement fees, add-on product fees, and if you’re lucky you may even get a discount. Before settling with a program, make sure you’re up to date on what extra add-ons it might require and other costs you’ll have to pick up as well.

The Cost of Training and Set Up

Once you’ve purchased all the add-ons and other services needed, now you have to train your employees on how to use the software. The more intuitive the software is, the better off you’ll end up. It’s going to cost money to implement, convert your existing data, integrate the software with your system, customize it to your needs, train your employees, and get the support you need to resolve any issues during this cycle. Server and hardware costs are also going to set you back a little. You’ll need to cover the cost of the server, SQL operating system, and the time and resources necessary to implement deployment options. If you’re realizing you have lost time and resources wasted on training and modify a program, it might be time for a change.

Overall, the total cost of your software is going to be much higher than the sticker price. In addition to the basic set up, a business often needs to account for all the extra prices and add-ons to ensure that they are able to accurately and effectively track their expenses and spending. If you think your business is paying too much for a program, look at where you’ve been paying more in and find ways to downsize or cut back.