Functionality is a huge factor for accounting software platform buyers

“The growth in the forecast period can be attributed to a focus on user experience and customer support, data security and compliance, integration with third-party applications [and] a growing emphasis on automation,” the report states.

However, as businesses become more reliant on these solutions, not all products on the market are up to the task, particularly in functionality.

Stephen Howe, director of business solutions specialist Times 3 Technologies (T3T), believes prospective buyers must take this issue seriously.

“High-performing accounting software should be cloud-native, user-friendly and function as a single, integrated solution rather than a collection of separate applications,” he explains.

“Take the example of intercompany transactions. Say, I’ve got 10 companies within my group. I need to do management overheads for one company and bill them to the next company. The solution becomes viable because the automated system eliminates the inefficiencies of somebody having to reperform the transaction.”

Howe adds that data consolidation and aggregation are key areas of practical functionality. A proper cloud-based accounting system will eliminate the need for different companies or departments to submit spreadsheets.

Seamless integration of Application Programming Interfaces (APIs) and other technologies is crucial in “new-age” cloud-based financial systems.

“An ineffective system means someone must capture and import the data manually. But this is extremely time-consuming. Modern accounting software means that instead of waiting for important data until month-end or down the line, it is now available in near real-time, enabling companies to make informed decisions quickly.”

Software solutions like Sage Intacct can handle tens of thousands of entries, which the old accounting systems typically could not.

Such systems also include practical reporting tools that enable companies to visualise what is happening within the business. Howe says employers no longer need to hire huge teams of IT specialists to perform this function.

It is worth noting that a lack of research can cause some businesses to choose the wrong accounting software, even though information is readily available on the internet.

Howe feels people are not talking to each other enough about what options are available.

“Ignoring the elements of what makes a solution effective is a mistake. Cost may be a big influencer, but that should not be the number one concern of a business. People still think of cloud-based accounting solutions as a record-keeping system, but it’s not that any more – it’s now a financial solution.”

Howe explains that a leading solution should negate the need for significant further assistance once implemented.

“Listen to what your clients need, decide what’s best for them, implement the system and teach them to use it. We consider a project successful if we can change our role to one of third-party support and clients can do what they are supposed to do. We want to empower them,” he says.

Selecting the right implementation partner is as important as choosing the right software solution. Even if a system works well, the partner will still be required to provide feedback on product growth maps and where clients benefit from the new release.