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As the demand for efficiency, accuracy and compliance from businesses is increasing, so is the need for best practices when it comes to accounting. This is why there are more than a hundred accounting software applications in the market today.

Each of these software applications have been programmed to work in accordance with the regulations and financial management guidelines. They have been designed to ensure easy understanding, quick access to reports and accuracy of financial entries. The accounting software appropriate for a business depends on the kind of business it is.

As businesses vary, so do the best practices required by the management of the business. Therefore, there are some things to consider before selecting the right accounting software for your company. These are;

• The Components of the Software: Accounting software applications vary in their components. Therefore it may not comprise of options needed for your business. Some special software applications only meant to be used in hospitals, others in banks. However there are also those designed for accounting generally.
• Flexibility: There should be flexibility of the application to allow customization of the modules to suit best practices of the management of your business.
• Standard Financial Regulations: The application must satisfy the standard requirements of financial regulations. At the same time is should assist with the implementation of financial regulations to assist in best practices.
• Compliance: There are compliance best practices accounting software applications should have. For instance, Tax is a sensitive issue all businesses need to ensure best practice with.
• Reporting: The software application must have the ability to generate financial reports easily and at any point during the accounting period.
• Scalability: In the future, if your best practices require a change of software, it should not become a problem.
• Training: It is important to consider whether the use of the accounting software requires special training of your staff. If it does, what resources does it have?
• Budget: Before buying an accounting it is an important best practice to ensure it can be budgeted for. Some accounting software may need specific accessories or system requirements to work at its best.

Further reading: Corporate Governance | Audit | Performance Improvement