Accounting software can provide the management of a small or medium-sized business with just the tools it needs to accurately track spending and revenues and to streamline enterprise resource planning (ERP). Since no two software packages are completely alike, it pays to compare accounting features with your business requirements.

Both out-of-the-box and hosted accounting software programs generally offer the same standard features and functionality. However, most have add-on modules and services that can tailor the solution to your needs, whether straight-forward accounting, financial management, or resource planning. The trick to getting a successful return on your investment is accurately assessing your needs, forecasting your growth, and choosing a scalable solution.

Common Accounting Software Features
Depending on your payroll and staff needs, you'll probably want accounting software that can integrate with your existing data, your network and Internet capabilities. Do you plan on banking and handling payroll electronically? Many packages allow businesses to handle general ledger, checks, invoicing, payroll, merchant accounting, bank reconciliation, and accounts payable and receivable. The same software lets you create financial reports from a flexible database.

You'll need to decide whether you want to buy individual licenses (seats) for each employee or whether you want accounting software to be open across your entire enterprise. You'll also want a solution that comes with training and support.

Some accounting and enterprise resource planning software modules can handle expense and travel reporting, electronic time entry, quoting and bidding, billing (time, material, labor), inventory, warehousing, shipping, receiving, bar coding, returns, field service management, demand forecasting, milestones and metrics reporting. Prioritize your needs before you shop.