5 Unexpected Problems SMEs Face When Choosing a Accounting Software
Starting and managing a new business is exciting for any business owner. With a variety of productivity grants such as the PIC and ICV made easily available, start-up and operational costs can be significantly reduced.
But when it comes to running a successful business that focuses on generating and growing sales, a strong back end support is very important as it is considered the backbone of the company.
And one of the ways successful business have been able to establish a strong backbone is through their business management software.
In Singapore, there is a number of accounting software on the market that SMEs can choose from. While this is one of the important aspects of setting up a business, it is often an overlooked one, and many do not realize the importance of supportive accounting software until they face a roadblock.
As a Master Distributor of Kingdee KIS, we have spoken with a fair share of clients who overlooked some crucial features in their accounting software.
Here in this article, we’re going to look at 5 Unexpected Problems that SMEs face when choosing a accounting software:
- Their Accounting Software is Not Pre-Approved by IRAS
This can pose a huge problem, not just on an annual-filing basis. The problem can start right from your day-to-day operations.
Different accounting softwares have their own methods of accounting and tracking profits and losses. Their data may also be presented slightly differently or in a different electronic format, which may not be an acceptable format when submitting to IRAS.
If you start your business with an IRAS pre-approved accounting software, submitting your accounts annually could be done easily by just exporting an IAF electronic file which is already compliant with IRAS’ requirements. This can save you and your accounting staff a huge headache and manhours!
Kingdee KIS is a IRAS pre-approved accounting software. Our IAF electronic file meets the requirements, so that you can easily export and email the file out in a few simple steps.
- Not Being Able to Support Multiple Tax Regimes for Expansion
We all know that different countries have different tax requirements, and it can be a logistical and accounting nightmare to manage your accounts accordingly to your branches overseas. But that should not stop you from wanting to expand.
Though the sad truth is that, there are companies using accounting software that only support the tax regime in Singapore. So what happens when they decide to set up a branch, in say, Hong Kong, which is not supported by their existing software?
They may have to purchase another one that is compliant with the tax regime in Hong Kong, and this can pose problems when trying to merge your accounts together.
Many of our clients have successfully expanded overseas, thanks to the multiple tax regime feature of Kingdee KIS, as well as the training and software support that Reach Technologies is able to provide.
- Poor Support of Multiple Currencies
Multiple currency support seems to be an important requirement for clients these days. Yet, there are still many who overlook this feature even if they are in the export/importing business.
Exchange rates fluctuate on a daily basis, as does your cost and profit margin accordingly. Most accounting software averages out the exchange rate across the month, then use it to compute their transactions. However, this is going to cause some inaccuracy in your accounts. Wouldn’t it be more accurate for your costing if you can compute the exchange rate on a daily basis accordingly?
Kingdee KIS is able to compute and convert multiple currencies, which takes away all the guesswork by your users.
- No True Multi-Language Support
Most accounting software out in the market recognize the need for multiple user languages. But, they often lack true multiple language support, which allows users to record data in one language, even though the interface is in another language.
For example, in Kingdee KIS, you may run your software generally in English. However, you may have some employees who are more comfortable with keying in the data in Chinese. Kingdee KIS supports this, even though at the end of the day, you are only interested to read your data in English.
- Inflexibility of Managing Multiple Warehouses and Logistics
Let’s say you are intending to transfer stock from warehouse A to warehouse B. It is not just a matter of doing an inventory transfer in your software. How do you transfer the delivery and product cost from A to B?
If the thought of doing it manually sounds like a headache to you, then this could be another crucial deciding factor in picking your accounting software.
Thankfully, Kingdee KIS is able to support this, making logistical and warehouse management a breeze and reducing human error. Transferring costs between warehouses can also be done by the software in a few steps.
Another Big Problem! Poor User Support & Training
So you may have purchased your software and happy to get started. But, what happens if you require software support or need to train a new employee on how to use the software? Perhaps you have decided to set up a new branch in Malaysia, but the software vendor tells you that they only provide local support in Singapore?
You may think that you do not need it now, but which business doesn’t want to expand overseas? Always check if your vendor is able to provide you with software and training support overseas, or at least, whether they will be able to extend their support off shore when you require it.