Accounting software can impact every part of a business. Local experts share tips on choosing the right system.

Accounting software has evolved over the past two decades and is now primarily cloud-based, highly customizable, and easier to implement. But choosing the right application is still complicated.

Here are a few things to keep in mind.

Online reviews are good resources, but be careful.

A few online review sites — such as G2, PCMag, and Software Advice — can provide a wealth of information about the capabilities of various accounting software. However, it is important not to rely entirely on the information provided by these sites.

Scott Hammer, director of marketing at Lumberton-based MilesIT, which makes Striven, a customizable accounting software application, cautions that some reviews may in fact be “incentivized” reviews.

“I’ve seen some people get gift cards or other perks for submitting reviews,” he said. “That doesn’t mean they’re false or disingenuous, but it does mean you have to take that information with a grain of salt.”

Hammer recommends using sites that offer the ability to talk to consultants. He also recommends asking other business managers in your industry what they use and getting recommendations from your accountant.

“The more people you talk to, the better,” he said.

It is important to work with a partner.

When purchasing and installing a new accounting system, many important questions arise.

Which general ledger accounts are suitable? How do you migrate data to the new system? Can it be integrated with other systems, such as your bank or payroll platform? What reports are needed? And most importantly, what training is needed?

Your accounting software vendor may ask you some of these questions, but most have partners and advisors who can help you choose and implement your system.

Chris Farrell, vice president at Philadelphia-area accounting software implementation firm NextTec, says working with an implementation partner is essential.

“Ultimately, you want someone who is familiar with your business processes,” he said. “A good partner will always have best practices and can help you best understand the strengths and weaknesses of the accounting software you’re evaluating.”

Implementation partners can be recommended by the software vendor or found independently on sites like LinkedIn.

According to Hammer, good partners can determine whether the software they offer is right for your business, and if it isn’t, they can steer you in a different direction.

“A good partner knows your business, cares about your business and is more invested in your decision-making than the average software vendor,” Hammer said.

Download demos. Lots of demos.

Vendors are used to demonstrating their products multiple times during the evaluation process of a potential customer. Most software systems offer a free trial period.

The vendor should show you the features that will have the greatest impact on your business. You should test the software’s capabilities yourself.

According to Hammer, an effective software demo is only accessible to people who will actually use the software. They need to be prepared and able to ask questions.

“There’s an art to giving a software demo, on the sales side, but there’s also an art to receiving a demo,” he said. “As a customer, you have to make sure you bring the right people with you, and that has to be both accounting and operational users who are doing ordering, invoicing, purchase orders and other tasks in the system. They have to walk through real life scenarios with the software.”

According to Farrell, users should also evaluate whether the software vendor they are considering meets their specific needs.

“Transparency is important,” he said. “A vendor may not be able to check all the boxes, but they have to be willing to demonstrate why their software solves problems that are unique to their customers’ businesses.”

Consider an industrial solution.

Although every accounting system is based on the same foundation of debit and credit, different businesses have different needs depending on their industry.

Manufacturers may need to track costs in bills of materials or process statements. Construction companies need project accounting. Service companies typically bill for time and materials. Retailers, restaurateurs, and online businesses have unique needs for point-of-sale and e-commerce.

Some mainstream accounting systems have templates and add-ons to meet industry requirements. Others are built specifically for an industry.

Accounting and financial systems have increasingly added functionality to meet compliance requirements in healthcare, government, nonprofits and manufacturing, Hammer said. Farrell said implementation partners with industry experience are also critical in the evaluation process.

“Having a partner who was a former controller or a plant manager or project manager in your industry is invaluable,” he said. “They’ve walked the walk.”

Finally, focus on your business, not your books.

Accounting software isn’t just about a ledger or sending an invoice. It’s the core system for any business and, when implemented correctly, touches every part of the business, including customer service, manufacturing, human resources, and purchasing.

“The most important thing businesses need to worry about when evaluating a new accounting system is identifying the key areas of the business where it will be used the most,” Farrell said. “Most systems available today can do the accounting work, so it’s important to focus on the processes in your business that are unique and figure out how the software will work with them — or even change them.”