Any business activities, both service or products, in small and large scale are closely related to accounting. Why is accounting crucial?Accounting is used by the business owner as the basis to make business decision. The business owners need the information generated from the financial statement to minimize/eliminate the risk of making decision mistakes.

Currently there are many accounting softwares in the market to support the entrepreneurs’ need. However the most common problem faced by the accounting software users is the software does not fully provide the information as needed. How could it happens?. Buying accounting software is just a first step. There are still some things to be prepared to make the accounting software to run as expected. Below are the points to consider before using accounting software:

  1. Human resource availability

If you do not do it by yourself, then you need a staff to enter the data into software, check the data, and make the report into the required format. The staff to fill this position such as:

a. Administration, in charge to enter the data. You can hire high school or diploma in accounting graduates

b. Accounting supervisor who is in charge to control the entered data and present it into report

c. IT, a staff with comprehensive experience in hardware and computer networks.

2.  Infrastructure

a. The client computer and its operating system. Make sure the computer used in accordance with the accounting software specification

b. Computer server. If the accounting software supports multi user features and more than 5 users, then computer server is required to support the hardware

  1. LAN

If the accounting software is used by more than 1 user, then you need the cable for computer network called Local Area Network (LAN)

4. Data. For the new company that just newly run and implement accounting software, it has lower complexity level than the one that has been running and has not applied the accounting software previously. It takes more preparation that the software will produce an accurate information. For the running business, the cut off date should be determined first. Cut off date is used as the initial transaction data entry into software. The date does not have to be the same as the start date using the software, and the date of beginning period is usually applied. After the cut off date is established, then all data on the cut off date should be collected, which include:

a. sales invoice including the value and due date

b. purchase invoice including the value and due date

c. complete inventory

d. complete account

e. complete assets

5. Time. The average time needed to set up an accounting software from the beginning to finally run smoothly is about 1 to 3 months. However, the software implementation takes more time than expected. Make sure to provide enough time and preparation to run your accounting software smoothly.

6. Commitment. Owner’s commitment for implement accounting software successfully is very important. Perhaps the owner does not understand accounting, but it is recommended for the owner to recognize his business through accounting software. Monitor your software progress in your business growth.

Preparing the above 6 points allows the business owner to be more ready for implement accounting software. Proper preparation and implementation will make the accounting software produces accurate and on time financial reports.