Choosing accounting software is a major decision. Its impact will be felt for years. That's easy to understand when you consider the central role it plays in the finance team's day-to-day work.
The evaluation process can be long and complex. This article aims to help you structure your approach and compare existing solutions effectively. The end goal? To help you adopt the accounting software best suited to your company.
Two main categories of criteria can be used to compare accounting software:
Before you start comparing the accounting software on the market, our advice is to draw up a list of questions to clearly identify your needs. We've dedicated an entire article to this, where you'll find a summary list of all the criteria to consider when analyzing your needs. You'll also learn how to carry out this needs analysis in practice.
It would be simplistic to classify the accounting software on the market solely by the size of the companies it targets. We prefer to highlight the main characteristics that set the available solutions apart. The factors that can influence your choice include:
"Online" accounting software (meaning Cloud or SaaS) is accessed only through your web browser. Your accounting data is stored by the vendor on its own servers. Sometimes these servers are located abroad.
This model has many advantages: updates are automatic, there are no infrastructure costs, data is secured by the hosting provider, getting started is faster, and so on.
"On-premise" accounting solutions run on servers managed by your company or a subcontractor. In both cases, the data is stored in an environment independent of the vendor. This on-site setup is gradually disappearing. It requires companies to have strong IT departments. In this configuration, deploying and maintaining "on-premise" accounting software calls for advanced technical knowledge.
Unless your IT and/or legal department strongly object(s) to a SaaS solution, our advice is simple: go for online accounting software.
Some solutions may offer many advantages (usability, features, integrations,...) without being suited to the rules that govern your market. Take the differences between accounting standards in different countries, for example. To stay compliant from one country to the next, it's crucial to review the legal and functional requirements specific to your country. Make sure, for example, that the chosen software handles the FEC (fichier des écritures comptables, the French standard audit file). For an even clearer picture, you can also check how many companies use the solution you're evaluating, where they're located and which features they use.
Some accounting software comes in several versions tailored to the specific needs of different industries. This can be a differentiator, but it shouldn't be your main selection criterion.
Accounting software can be part of an ERP (Enterprise Resource Planning), meaning an integrated software suite. A software suite usually stands out for its many functions. This range of features means it can be used by several departments across the company. That's why implementing such a platform has many benefits, including how smoothly information flows from one department to another (accounting processes, sales management,...).
Integration does, however, require strong involvement from the departments concerned. The implementation period is generally longer. This can make rolling out your accounting software more complex.
Another option is to use a "stand-alone" solution. In this case, the accounting solution works independently. It isn't integrated into software covering the company's broader needs. If you choose this approach, you need to check which integrations are possible between the accounting solution and, for example, the CRM used by the sales team. This matters, because connections between different software reduce data entry, standardize data and make it easy to keep up to date.
Entering accounting data can quickly become tedious if the accounting software is poorly designed. Certain details (such as keyboard shortcuts, support for the "Tab" key, or how the dashboard is organized) can make a real difference in efficiency.
To assess this criterion, be sure to request a demo version. We always encourage you to test the software (and its usability) before deciding on one solution over another.
Not only do features differ from one solution to another, but you won't need all of them. That's why a thorough analysis of your needs (see our article on the topic) is essential to identify the features you truly can't do without.
Also assess how well online or on-premise solutions allow other tools (for example, a performance management tool or dashboards) to plug into their services. When several solutions work together, they generally give users broader functional coverage.
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On the one hand, pricing grids can vary widely from one solution to another. On the other, there may be hidden costs. To estimate the total cost as accurately as possible, analyze prices against several criteria:
Accounting software pricing is often based on the number of users. So you'll probably be tempted to compare the options on this cost alone. Solutions with the most attractive price per seat might win you over... Before taking the plunge, keep in mind that this cost may represent only part of the total cost.
Vendors often break their pricing down into feature bundles. A "Starter" plan might include features A and B, while a "Business" plan offers features A, B, C and D.
Officially, the aim of this kind of pricing is to let you try the solution at an affordable price. You can then move to the plan best suited to your organization's needs. In practice, however, you'll probably have to choose a higher plan than you first planned. And for good reason! Often, "the" feature you need, but hadn't identified beforehand, is what pushes you to upgrade.
So you can see how important it is to draw up a list of the most useful features. Having this view of your medium- and long-term needs greatly increases your chances of identifying the right subscription right away.
The volume of units processed can quickly affect the cost of your accounting software. This can apply to several things, such as:
Anticipate as best you can the volume (current and future) generated by your finance department's activity. That way, you'll be able to calculate the cost of your future accounting software accurately.
How much training will users need? How will the data from your old system be transferred to your new accounting software? What support will you get once your solution is up and running? The software vendor or integrator may charge you for these services. These costs can be high, so they need to be anticipated.
Minimum and maximum contract terms can vary from one vendor to another. Some offer monthly subscriptions, while others require a minimum one-year commitment. Either way, be aware that contract terms only partly define your level of commitment.
The technical and operational difficulties of switching accounting solutions are also a factor to consider. In other words: be aware of the tie that will bind you to your software vendor once you've adopted the accounting solution. Transferring data between software is often a complex process. So you'll almost certainly be tied to your software not only by your contract, but also by the logistics of moving data from one solution to another. From a contractual standpoint, expect (in general) a minimum commitment of one fiscal year.
Selecting accounting software depends on an in-depth understanding of your needs and a thorough comparative analysis. As you carry out your research, keep in mind that the success of your accounting software choice also depends on a successful integration. With that in mind, choose high-quality partners. Surround yourself carefully, both internally and externally, and don't hesitate to reach out to your network. You'll benefit from valuable first-hand experience.
Did Engels' experience make you want to learn more about EMASPHERE?
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