How do I choose the best accounting system?

There are a number of important points to look out for before you start comparing accounting systems. Below we discuss the most important ones.

- Outsourcing or collaborating in an accounting system
An important question to ask yourself is how you want to organise your bookkeeping. Do you want to do it yourself, or have a bookkeeping firm or accountancy firm do it? Technology keeps getting better and this makes bookkeeping easier. This makes it possible to process invoices and file VAT returns yourself. You then bring in the accountant to prepare the annual accounts or to give (strategic) advice. This could include deductions, favourable tax benefits, financial forecasts or choosing the right moment to invest.

When choosing an accounting system, it is important that the accountant or bookkeeping firm can look into your accounts. That is why accounting systems often offer an accountancy portal that lets you work in your accounts at the same time as the accountant.

Please note!
Accounting systems are often chosen on the advice of a bookkeeping firm or accountancy firm. This is not always the best choice for your business. The choice is often based on what the bookkeeping firm or accountancy firm usually works with, and not on what best suits your business.

- Integrations with the accounting system
Another thing to look out for when choosing an accounting system is whether it can integrate with other software systems.

Example
Suppose you use webshop software and a POS system. Then it is handy if sales end up in your accounting system automatically. If that is not possible, you have to do it manually yourself. This takes a lot of time and there is also a risk of errors.

Features of the accounting system
Accounting systems nowadays offer many different features. The question is whether your business needs them all. A business with a physical shop, for example, has very different requirements than a service business. Below we discuss a number of important features that are often offered:

✅Automatic bank link
The accounting system can automatically import your bank statements every day. This way you do not have to download and import the bank statements manually.

Note: not all accounting systems offer an automatic link with every bank.

✅Scanning and recognising receipts and invoices
Scan and recognise software supports you in the entire process of digitally processing purchase invoices, sales invoices, receipts and other documents. This is often part of an accounting system, but in practice you also often see accounting systems that can integrate with scan and recognise software. This software often has far more extensive functionality than a scan and recognise module in the accounting software itself. Does your business process a lot of receipts, invoices or other documents? Then it is advisable to buy a separate scan and recognise system.

✅Automatic booking suggestions
As mentioned, documents and/or invoices are recognised automatically. The scan and recognise software automatically reads the relevant data from an invoice. For a purchase invoice, for example, it recognises the invoice number, the supplier and the total amount including and excluding VAT. On this basis an automatic booking suggestion is made, so that the invoice is processed correctly in your accounts.

✅VAT return and link with the Tax Administration
An important part of bookkeeping is the VAT return. The accounting system automatically keeps track of how much VAT you are due to receive or have to pay. The software then prepares the return for you automatically and you can send it directly to the Dutch Tax Administration (Belastingdienst).

✅Digital archive
By law, businesses are required to keep all invoices and receipts. This must even be done for 7 years. An accounting system without a digital archive is therefore not recommended. In the accounting system or scan and recognise system, invoices and receipts are stored automatically. This lets you find your invoices easily and quickly.

✅Invoicing module
An invoicing module is a must if you need to send invoices to customers. With an invoicing module you can send invoices directly from the accounting system. All the legal requirements an invoice must meet are taken into account, and you can often adjust the layout yourself.

✅Recurring invoicing
Does your business do a lot of recurring invoicing? Then this feature is a godsend. You set up an invoice once for a certain period and the software does the rest for you.

✅Online payments
Does your business invoice a lot of consumers? Then it is wise to send a customer an invoice with a payment link on it, for example an iDEAL button. In practice you see that these invoices are paid much faster than an invoice without a payment link.

✅Payment file
Do you transfer your invoices one by one via the bank? This can take a lot of time and cause frustration. An automatic payment file is then a good solution. The accounting system creates a payment file that you can import into the bank. You can then pay multiple invoices in one go.

✅Quotation module
You still see many businesses making quotations in Word and Excel. This takes a lot of time and is error-prone. Many accounting systems include a quotation module. This way you can create and send quotations directly from the accounting system.

Do you really want to impress with your quotations? Then specialised quotation software is really something for you. Go straight to the list of quotation software!

✅Digital quotation approval
Getting a quotation approved is often a cumbersome process. The customer has to print the quotation, sign it, scan it and send it back. With this feature a customer can accept the quotation online quickly and easily, so you always have a signed quotation behind your assignment.

✅CRM module
Do you have a lot of customers? Then a CRM module is a "must-have". Many accounting packages include one, but often in a limited form. If you really want an extensive CRM system, see below for the best CRM systems:

List of CRM systems

✅Payment reminders and debt collection
Unfortunately, customers sometimes do not pay on time, or even at all. That is annoying and costs a lot of time and effort. With this feature it is easy to remind customers automatically and to start a debt collection process.

✅Mileage tracking
If you drive a lot of kilometres as a freelancer, such as painters, builders and consultants, a mileage tracking module is a must in your accounting system. It is handy to be able to record the trips you make easily and quickly, and even to pass them on to the customer on your invoice.

✅Mobile-friendly and/or mobile app
If you are on the road a lot, a mobile-friendly accounting system or a mobile app is very valuable. In this case you can quickly check your invoices or send out one more invoice.

✅Projects and hours
If you work a lot on a project basis as a freelancer, you need to be able to keep track of the hours per project.

✅Inventory module
Do you have a business with a lot of stock? Then it is handy to have an inventory module. Note: an accounting system does not necessarily have to be the place where you manage your stock. If you have a shop with a POS system, for example, it makes more sense to keep track of your stock there.

Costs of the accounting system
The costs of accounting systems vary and often depend on the number and quality of the features. There are free open-source accounting systems that offer basic features, but there are also accounting systems with many features that cost 80 euros per month. To determine which price you should pay, we recommend the following steps:

1. Determine which features are important for your business and draw up a shortlist of accounting systems that meet them.
2. Compare the quality of the features of the accounting systems on your shortlist.
3. Finally, compare the price of these accounting systems.

Conclusion
Choosing the best accounting system is therefore quite difficult, because you have to take many things into account. Moreover, one business has other personal preferences than another. That is why it is advisable to test an accounting system yourself first and/or to request a demo.