Budgeting software can be found in many shapes and forms, but generally, there are some questions you should ask yourself before you decide to purchase just any budgeting software out there on the store shelf.

Features to look for

Consider:

1. How easy it will be to import your current account information. Every business is a bit different. Effective budgeting software programs will give different options for integrating your current accounting information into their program. You don’t want to spend valuable time retyping all of your books. Budgeting software on the market today can create a “family tree”, a hierarchy of your current accounts, and import them as they are.

2. Is your business international? Does your budgeting software have to have the ability to deal in other currencies? Plan ahead now, even if you’re just thinking of expanding to “over there”!

3. How many people have to access the budgeting software? If there are many, you want a program that can handle many users, and easily collect budgets and forecasts from them. An audit log feature could also help you track who sent in what information, in case anything needs to be verified or clarified.

4. Which forms do you want to see? Do you need your budgeting software to show you expenses? Revenue? An Income Statement only? An Income Statement with a Balance Sheet and Cash Flow Statement? Would you like to budget once per year, four times per year, or do you have a five-year plan. A good budgeting software program will have the option to do any or all of these.

5. How much forecasting will I do? If you like to forecast, be sure your budgeting software includes a “What if?” scenario feature. What if our current ad campaign is successful, and revenues increase by x per cent? What if we increased our expenses next quarter by purchasing new office equipment? What if? Budgeting software should help you “play” with different scenarios.

6. What reporting features do I need? Do you need everyone to have the ability to create different kinds of reports? Do you need different levels of security for the program, with some information being accessible to some users and not to others? Many budgeting software programs will show you how to set this feature up once, and then forget about it…

7. How easy will it be to install? There’s no use buying the latest greatest budgeting software if you can’t figure out how to install it and start using it immediately. Make sure that installation is quick and easy, and that there is help available.

Keeping those seven points in mind should make your next budgeting software purchase a breeze!