ACCOUNTING SOFTWARE MADE EASY  

Don't be swayed by fashion e.g. I meet people who say on-line software is great without the knowledge to comment.

Keep it as simple and user-friendly as possible and don't over-specify but on the other hand, think carefully about what you will need in 5 years time as changing later can be expensive.

Don't just leave it to your accountants who typically just want a system which suits them and not your business.

Unless you are a simple cash-based business avoid cash-based software as any financial reporting will be worthless as this ignores Accounts Receivable/Payable or inventory.

Does the software give you what you need in terms of invoicing, customer statements, analysis and reporting and not just recording bank transactions or producing GST returns?

Ensure the software has a decent customer database facility which can be used for mail-merges etc and can synchronise with Outlook. I still meet business owners with three different customer lists e.g. part on the software, part on Outlook & part on Excel.

Does it allow add-ons e.g. budgeting, CRM or debtor management?

Don't worry about not understanding accounting or double-entry General Ledgers – you don't need to and the benefits of a system which incorporates a General Ledger are huge.