Introduction

Managing accounting, finances, and tax compliance can be a daunting task for any small business. That’s why it’s important to select the right accounting software for your small business. Not only will this software make your life easier, but it will also help you keep track of your finances and ensure you are complying with all the tax regulations. To help you choose the best accounting software for your small business, we’ve put together a list of the best features that your accounting software should have. We have also compiled a list of a few of the options available in Nigeria. Read on to find out more about each of these programs and decide which one is best for your business!

Background

Concepts, standards, conventions, and, in certain circumstances, laws govern the practice of bookkeeping and accounting in general. Several accountants find it difficult to fully implement several of these principles and criteria. As a result, the risk of messing up financial documents or even not knowing what they mean is quite high if you have not been professionally trained in accounting and bookkeeping.

It is understandable and practical for small businesses to keep a manual ledger of records or use Microsoft Excel sheets. This is useful for simple tasks such as recording inflows and expenses and reconciling daily stock, but this might even seem to be a tedious task as the business begins to grow. I have seen some small business owners spend countless hours recording and reconciling records, while others choose to ignore this undesirable part, especially if the bank balance is growing.

The problem above brings about the need for skilled bookkeepers and accountants to handle the books. Regrettably, this does not solve the tediousness of manually performing operations that can be automated. For example, a small business that sells large volumes of inexpensive products might process hundreds, if not thousands, of transactions in a brief period of time to account for, and even the best accountant might make mistakes trying to account for all of them.

Regardless of how tiresome and cumbersome the accounting is, not doing it at all or not doing it properly is not an option.

This has brought about the development of accounting software and solutions that support accountants and bookkeepers in recording and reporting business transactions. Gone are the days of huge ledgers and journals. Automated processes and reporting are the future. The good news is that with each passing day, there are innovative solutions coming out, while existing ones are constantly being updated with better features to help businesses.

One of the most popular choices for small businesses when it comes to accounting software is off-the-shelf packages. However, there are a few things to keep in mind before making this decision: what features are important to your business, what kind of support is available, and how much money you want to spend.

There are a few popular solutions, with a few that are customized for the Nigerian market. Each offers its own unique set of features that can be helpful for several types of businesses.

It’s important to consider which features will be most useful for your business before making a purchase; some common needs include inventory management, billing and accounting reconciliation, financial reporting and analysis, tax preparation and reporting, and budgeting tools. Additionally, it’s important to find software with support that is available in your language; many accounting solutions come with help files or online resources specific to the region where they were developed. Lastly, and this may vary depending on the size/complexity of your business, budget carefully when determining software costs.

In the end, small business accounting software is a great solution for small businesses and startups looking to automate processes and improve reporting capabilities.

Benefits of Accounting Software for Small Businesses

Small businesses and startups in Nigeria can benefit from accounting software. This software can help you keep track of your company’s finances, assess its health, and manage customer and vendor contacts. Additionally, this software can generate reports that can be used for many different purposes, such as invoicing, auditing expenses, tax calculations, employee payroll and benefits tracking, etc. A list of additional benefits is included below:

1. The software is easy to use and can be used by a novice or an expert.

2. It provides comprehensive information about your business, including financial statements, cash flow analysis, budgeting, and forecasting.

3. Allows you to easily manage all your accounting tasks, such as invoicing clients for services rendered.

4. It helps in making informed decisions that will help you improve the performance of your business.

5. Be able to keep track of your finances in a timely manner.

6. Save time by not having to look for data, compare reports, or manually enter data into spreadsheets anymore!

There are many more benefits.

Features of good accounting software

Small businesses require accounting software that can help them manage their day-to-day operations. Good accounting software can offer small businesses access to a host of features and functions. Accounting software for small businesses makes the accounting software more useful with functions like sales and purchase tracking, inventory management, tax reporting, financial reports, and more.

Considering that funds can be tight for small businesses, they must get it right before they expend resources on software. Incompatible software would be a gigantic waste of resources.

As a result, what are the things to watch out for when purchasing accounting software? The following is a list of examples:

1. Scalability

This means that whatever solution you deploy now should be able to accommodate the almost inevitable changes that will affect your business. The future may bring about more complex situations that will put a strain on accounting processes and financial reporting. Your deployed accounting solution should cope with these changes seamlessly. In summary, accounting software must be able to accommodate the business growth and expansion that small businesses experience.

If needed, scaling down should be easy too.

2. Ease of use

Small business owners are not trained in accounting, so it is crucial for accounting software to have an intuitive interface that makes financial reporting easy for them. If a small business owner does not find accounting software user-friendly, they will switch off from using this solution altogether! Deploying a solution is one thing, knowing how to use it without hassle is another. As a result of market feedback and growing competition, most providers are making their interface very user-friendly. What this means is that as time passes, more non-accountants are now able to use the solutions without the input of a certified accountant.

For instance, an entrepreneur can easily raise and send an invoice on their mobile phone just like any other mobile app while the solution deals with the accounting entries in the background.

3.Cloud-Based

Cloud computing is one of the best technological innovations, and small businesses can take advantage of it big time. Look for accounting solutions that offer cloud storage as part of their features. The benefits are immense, including cost savings on hosting equipment, real-time updates, easy access to your information at any time, and secure storage of your information in an independent location. Even if your system “crashes”, your information is safe.

As small businesses grow and evolve, so too must their accounting solutions. Cloud-based accounting systems offer several advantages that make them perfect for today’s modern businesses. Here are five reasons why you should consider switching to a cloud-based system:

1. Security: With cloud-based accounting, businesses can store their data securely online and access it from any device or computer. This protects your business against data breaches, theft, and other forms of cybercrime.

2. Cost Savings: Switching to a cloud-based system can save your business money on hardware costs as well as software licenses and support service fees associated with traditional systems. Additionally, by using the latest technology tools available in the cloud, your company can improve its efficiency and productivity considerably – all without having to invest in additional equipment or software!

3. Flexibility: Cloud-based systems allow you to work from anywhere in the world with an internet connection – no installation required! This is great for busy small businesses who want to be able to manage their finances from anywhere at any time without having to worry about IT headaches or disruptions caused by old technology infrastructure.

4. Improved Customer Relationships: By providing customers with more immediate access to information, cloud-based accounting systems can significantly improve business relationships. This is especially true for small businesses that are often more concerned about their bottom line than the technology behind it.

5. Improved Efficiency: With cloud-based accounting software, you don’t need to spend time worrying about upgrading outdated software or maintaining old hardware infrastructure – all of which will help save your business money eventually.

4. Security

Because all your financial records will be stored in the “cloud” (simply put, outside of your control), it is particularly important to choose a solution that is very secure. You need to trust that your information cannot and will not be altered without unauthorized access. The good news is that the major solution companies must demonstrate clearly how they keep customers’ information secure. Make sure to do this due diligence, especially if you must deal with less-known providers.

Finally, cloud accounting software solution providers should also have a business continuity management plan. This is essential to ensure your business can continue operations if the cloud-based solution provider goes out of business or gets hacked.

5. Pricing

Since most players in the small business space are usually on a tight budget, it is crucial not to overpay for accounting solutions at the early stage of your business, no matter how well the marketers sell their product. While it is important to keep a fair budget for such solutions, only pay for what your business needs at the time and scale up or down as your business needs demand.

Cloud accounting software solutions must be cost-effective and flexible enough to suit your business needs in terms of features and pricing structure. It should also have the best price-to-value ratio (P/V) in the market so that you can make an informed decision on purchasing a cloud accounting solution without any hesitation.

Shop around for deals and discounts from the major providers. The prices are competitive anyway. Most of the major providers offer free trials.

6. Integration

Your business is going to need an accounting solution that integrates all your processes into one place. Your solution should be able to integrate processes. Sales, billing, invoicing, treasury management, fixed assets management, expenditure management, project costing, payroll management, inventory management, and financial reporting (as needed). You may run into issues if your solution is unable to handle some of your key processes.

For instance, if you must manually create an invoice and then go back to the accounting software to record it, then it is not a workable solution. The ideal scenario would be for the accounting software to create the invoice and automatically post the accounting entries. Most solutions today can link with your bank accounts and automatically update your records. In the age of technology, it’s easy to see why accounting software is becoming increasingly useful for small businesses. A few allow you to manage all aspects of your business finances in one place.

7. Support and Training

Look for solutions that offer round-the-clock support and training after deployment. The chances that you will abandon the software are high if you are not trained to use it. The training and support are on how to use the software, not necessarily accounting techniques.

Cloud accounting software solutions must be able to provide 24/7 support for small businesses that require it, especially in terms of email. It is important to know what kind of support you will get, as some accounting software solution providers offer free small business accounting software support for a limited period.

Popular Accounting software for small businesses in Nigeria

Accounting software for small businesses in Nigeria is important, as it helps you keep track of your business and make sure that everything is going well. It also helps you maintain records and reports for your business.

There are many articles on the internet about the best software for small businesses, but I tend to find that most of these are not targeted at Nigerian businesses. We have put together a list of the top accounting software for small businesses in Nigeria. They are all subscription-based.

1. QuickBooks online

If you’re running a small business or startup in Nigeria, you’ll need an accounting solution that can handle your books, invoicing, payroll, and other activities quickly and easily. QuickBooks Online is the perfect fit for businesses of all sizes; it has several helpful automations and detailed reporting to save time and ensure accuracy. Plus, its mobile app makes completing many accounting tasks easy and convenient.

The QuickBooks Online platform is the best choice for small businesses, it is easy to use, secure, and gives complete control to the small business owner. The online platform is the best solution for small businesses and offers the best value for small business owners.

QuickBooks Online is a subscription-based service that’s available to small business owners worldwide. The subscription-based service gives you the ability to manage your business finances. The service was developed by Intuit and is a fantastic way to manage your business’s finances.

2. Xero

Xero is the world’s leading online accounting software for small businesses, with bookkeeping functions such as invoicing and payroll, as well as the ability to connect the program to a live bank feed. Xero allows for both cash-based and accrual accounting systems, which makes it ideal for companies adhering to UK GAAP or IFRS.

Xero is a cloud-based accounting software that allows you to connect your bank accounts, credit cards, invoices, and other business apps to your business. There are numerous benefits to using Xero. One of the main benefits is the fact that it is online and works with a real-time system, so you can track your business and make sure that you have the correct information.

Start using Xero for free for 30 days to access all Xero features, and then decide which plan best suits your business.

3. Sage Business Cloud Accounting – Billed in Naira

With Sage Business Cloud Accounting, you can easily manage your business from anywhere and keep track of your cash flow. It gives you real-time insights into your business, as well as tools to help you grow.

Some of the features available with Sage Business Cloud Accounting include:

* Bill Payments: Easily pay bills with a single click.

* Dashboards: Get an overview of your finances immediately.

* Receipt Capture: Quickly scan receipts and add them to an expense claim.

* Invoicing: Send invoices directly from the app.

* Multi-Currency Support: Make payments in multiple currencies.

4. InvoiceApp – Nigerian Company

InvoiceApp makes it easier for small businesses and freelancers in Nigeria to manage the sometimes-confusing process of sending invoices, keeping track of payments, and managing clients. You’re busy enough running your business, so it keeps everything organized and streamlined.

The simple dashboard makes it easy to keep track of who owes you money and how long they’ve had it. It integrates with all the major payment systems, so you can get paid faster no matter how your clients prefer to pay. And your data is encrypted at rest and in transit because you should never have to worry about someone getting access to your sensitive financial information.

With the InvoiceApp app, you’ll be able to focus on what matters most: growing your business!

5. Slickpie

SlickPie has all the features you need to run your business, without any of the fluff that the big players have.

Eliminate the time spent on data entry by connecting your accounting software to your bank account. As soon as you make a transaction, it gets added to SlickPie automatically, so you can see exactly where your money is going and how much money you made.

Stay on top of all your projects with intuitive project management tools that help keep you organized and focused on what’s important. Set due dates, track schedules, and even assign tasks to team members so they know what needs to be done before the deadline to complete a project.

By tracking every transaction as soon as it happens, you will know exactly how much money you have made every month. When you add expenses right after they happen, there’s never any guessing about how much money your business has in its accounts at any given moment. This makes it easy for you to make informed decisions about spending and saving.

6. Wave

In the past few years, small businesses have been able to turn their operations around using Wave. With over 750,000 businesses using the software, it has become one of the most trusted platforms for accounting and invoicing solutions.

With Wave, you can send professional invoices, track business expenses, manage your books without any training, and so much more! It’s like having an entire accounting department at your fingertips.

There are also tons of locally based developers that can develop your business’s customized accounting solution. Before settling on a software to use, we strongly recommend talking to an experienced accountant or financial professional who can assist you in getting what your business needs.

Conclusion and Takeaway

Good practice will also be to let a qualified accountant go through your accounting records monthly to help you monitor if things are on track.

It is important to note that even the best accounting software is deployed in your business improperly installed or operated will lead to disastrous results.

In conclusion, bookkeeping and accounting can get very tricky and cumbersome even for experienced guys that know what they are doing, so accounting solutions have been developed to help accountants and non-accountants alike. Businesses should invest a little to get these solutions that make accounting easy. If funds are limited, there are professional accounting firms that can offer bookkeeping and accounting services for a nominal fee.

Pick the right accounting software for your business not just to meet your needs and save you time, but also because this step can help you make better business decisions.

There were a lot of excellent features mentioned in this article that will make choosing the right accounting software for your business easier. If you are looking to add small business accounting to your existing product portfolio, then you should consider one of these packages as we believe that they have all the tools and flexibility to help you in your endeavour.

We have connections with a wide number of businesses that can help purchase, install, and monitor accounting solutions for your business. Reach out to us.