How do you Choose the Right Type of Accounting Software for your Businesses in Kenya?

|Updated on: August 1, 2022

Accounting software is one of the key tools that help businesses maintain all finance-related operations. From tracking accounts payables and receivables to gaining better cash flow stability, accounting software is the single source of all information that a business needs to function efficiently.

A robust accounting software comes loaded with multiple modules that can help in simplifying all accounts-related tasks, thus enabling business growth.

Apart from eliminating reporting anomalies that can occur in manual entries, it can help provide real-time insights like generating sales reports, forecasting cash flow, analyzing which items are overstocked and understocked and pinpointing the least profitable products or services. These factors especially come in handy while choosing the right accounting software in Kenya.

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What is accounting software?

Accounting software is an integral part of the business ecosystem, that helps companies manage all their finance and accounts-related tasks seamlessly, ensuring seamless operations. With various functional modules like predicting cash flow, automating invoicing, managing inventory, to getting insightful business reports anytime, accounting software comes with features to support the needs of your growing business.

Factors to consider while choosing the best accounting software for businesses in Kenya

If you are a business looking to streamline your accounting process, then here's how are the 5 key factors that will help you choose the right accounting software in Kenya:

User-friendly tool

One of the key factors that any business should consider while opting for accounting software is the ease of usability. Any user-friendly accounting software would provide an overview of all the financial components and functionalities 

Business scope

While selecting accounting software, one should analyze the type of accounting tasks the software should perform and what value-adds it should bring to help support business growth.

TallyPrime comes loaded with multiple features and functionalities that helps reduce the complexities and run seamless business functions.

Modules included

Once the business scope is decided, as a business owner, you need to understand what kind of modules the accounting software should come with to support the business's growth trajectory. In other words, the software should not only help manage your currents needs but also the needs that you may come up with as your business grows.

Each accounting software comes with a set of modules that would be included in the base price and certain modules that would have an additional cost involve. You would also get business software that comes with built-in modules without any additional costs involved.  Make sure to analyze the cumulative cost involved to compare and make the right decision. 

In-depth business insights

Getting an in-depth business report at a click of a button is a crucial factor that enables businesses to take the right decision at the right point of time, thereby saving time and cost. TallyPrime, for instance, provides insightful reports that help in making efficient decision, thereby supporting business growth.

Compliant with the tax regime

From invoicing, generating tax returns, businesses need to be compliant to VAT laws and regulations in Kenya. Hence, having an accounting software that embraces a proactive approach towards tax compliance is instrumental for businesses to focus on their core competencies and run smooth business operations. 

Different Types of Accounting Software

As per the different functionalities and business operations, accounting software is divided into the following categories: 

ERP systems

An advanced form of handling accounting tasks, the ERP system manages the operational portfolio by integrating data from all parts of the business into a holistic database. Being an automatic procedure, ERP software eliminates errors associated with having a manual tool like a spreadsheet. However, ERP systems can be expensive and complex and usually only larger organizations require.

Off-the-shelf software

One of the predominantly available off-the-shelf accounting software comprises modules that help businesses get in-depth insights into all accounts-related tasks. Being easily configurable and user-friendly, this accounting software comes with intuitive features that help in seamless business functions.

Business management software

Another sought-after solution is business management software specifically designed for small and medium businesses. This software comes with a host of modules like accounting, invoicing and billing, payroll, credit and cash flow management enabling smooth business operations.

What kind of business can use TallyPrime accounting software?

TallyPrime can be used by small, medium, and large business entities. It can also be harnessed by business owners or entrepreneurs, Chartered accountants, other financial professional to manage their day-to-day tasks.

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