Which comes first, accounting software or HR software?

Which comes first, accounting software or HR software?

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Which do I need more for my small business – accounting software or payroll software? I can’t afford to buy both. And how do I choose between the plethora of options available?

Generally you should start with an accounting package and then add on others as you need them. That said, businesses are like fingerprints: Each one is unique, and has its own set of needs. You may need accounting or payroll or both.

It depends on details like how many staff you employ, how complex your finances are, and how many companies you’re running.

Choose the right software for your business

In my opinion this is one of the most important choices you will make because your accounting software is one of the most important business management tools you will invest in.

If you’re choosing professional software from a reputable software developer, the particular brand name shouldn’t really matter if they are trustworthy and have a strong local presence.

Goedkoop is indeed duurkoop

Too often I hear horror stories of small businesses buying the cheapest product on the shelf which is fine… until things go wrong.

 

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The package doesn’t work properly, they can’t get support, the phones go unanswered and the company they bought the software from doesn’t have the resources to service its customers.

Take advice from your friends, your accountant, your bank, and then make sure you choose a brand with an established reputation and a local office that provides training, support and after-sales service.  Above all, understand that you are making an investment, not a purchase.

Peter S. Cohan
Peter Cohan is president of Peter S. Cohan & Associates a management consulting and venture capital firm. He is the author of Hungry Start-up Strategy: Creating New Ventures with Limited Resources and Unlimited Vision (Berrett-Koehler, 2012).