We’re all familiar with the common accounting software businesses use to streamline financial management. The right software can be priceless for your business – and your time – but not all software solutions are created equal.
If you’re using a general solution that caters to a wide range of industry sectors, you could be missing out on efficient, specialized features that make your business processes even better. You have unique financial needs and challenges, so you should have a solution that works for you.
There’s a gap in the market for specialized software, which is why software companies like my own are shifting toward niche accounting solutions that provide organizations with the specific functionalities and features that are most beneficial to their accounting processes.
The Rise of Enterprise Accounting Software
Back when accounting software was the new kid on the block, businesses of all types were quick to include a tool that could service their financial needs. This sparked a wave of on-premise solution providers who designed software that satisfied a wide range of fundamental accounting needs, like bookkeeping, invoice and vendor management automation, payroll processing, financial analysis and reporting, and general ledger organization.
The market was dominated by industry giants like Sage 50 and QuickBooks, providing software solutions that satisfy the needs of a wide range of organizations and industries. However, the goal with these solutions was to provide an affordable option that could essentially replace an in-house accounting team.
General accounting solutions have no doubt helped many organizations over the years, but they don’t’ offer quite the same value as a purpose-built solution that’s designed with a specific business model in mind.
The Demand for Industry-Tailored Accounting
The top accounting software brands are still in wide use for many organizations. But some industries have recognized the need for more specialized solutions. As this gap widens, more software companies are recognizing the unique demand and providing more purpose-built accounting tools.
Here are a few examples:
Retailers
Many retail businesses manage extensive inventory across multiple store locations and online platforms. They also rely on omnichannel marketing and sales strategies that can add complexity. These companies need accounting software that can seamlessly integrate with e-commerce platforms, point-of-sale (POS) systems, and inventory management platforms to provide a single view of the operations.
Healthcare Organizations
Healthcare providers have a lot of complexity in their intricate billing processes and electronic health records (EHR), as well as regulations and compliance. The accounting systems for healthcare need to integrate with platforms for EHR, insurance claims, patient invoicing, and more, all while keeping up with stringent compliance standards like Health Insurance Portability and Accountability Act (HIPAA).
Construction Companies
Construction companies have unique project management and budget control that need to balance numerous vendors and subcontractors. Along with this, their accounting software has to support multi-project accounting, subcontractor billing, and change orders.
Real Estate Agencies
Real estate professionals require specialized accounting software that goes beyond basic accounting features like bookkeeping and billing. These organizations require solutions that can integrate with property management solutions and provide comprehensive expense management capabilities to ensure accurate financial reporting and grow client portfolios.
How Software Developers Are Finding Solutions
Specific industries need specialized accounting software, and software developers are considering the following in their Software Development Lifecycles (SDLCs):
Advanced Features for Niche Requirements
Building on the capabilities of general accounting software, developers are creating applications with specialized features tailored to the unique demands of certain industries. Some of these features include costing software for construction companies and advanced inventory management platforms for retailers with e-commerce and brick-and-mortar locations.
Specialised Reporting
Some organizations are beholden to unique compliance and regulatory requirements that have specialized reporting needs – many of which aren’t served by generic accounting software. Developers are rising to the challenge with specialized software that incorporates industry-specific terminology and puts data into more valuable and relevant reporting formats to make software more user-friendly and efficient.
Regulatory Compliance
Several industries need to operate within strict regulatory environments, especially when it comes to finances. To adapt to these demands, businesses in certain industries are turning to more advanced software solutions that can streamline compliance with tracking tools that are built into the accounting system.
These integrated features help businesses manage compliance audits and receive alerts about discrepancies in financial records. Businesses can stay on top of their records and prevent any problems that may result in financial penalties.
Flexible Integration
General accounting software doesn’t integrate into every platform because different industries have tech stacks built with specialized tech tools. Businesses are accustomed to seamless integration between these systems for operational efficiency, bringing their business ecosystem into one unified platform. If the accounting platform can’t integrate, it creates frustration and lost time.
Software developers are relying more and more and open-source principles to build solutions that are vendor-agnostic. Businesses can integrate a wide range of tools into their digital ecosystem for a comprehensive view of all important business areas while improving their accounting efficiency.
How to Choose the Right Accounting Software Solution
With so many options on the market, here’s how you can choose the right software solution for your specific needs:
- Identify your requirements and the features that are essential to your business. Think about the accounting gaps you need to fill and the integration that’s necessary to your operations.
- Research and compare solutions: Once you understand your requirements, you can narrow your selection based on which providers offer the capabilities you need. Consider solutions that are designed for your industry, especially ones with custom features that can enhance your specific workflow.
- Make use of demos and trials to see how the software operates in practice. This gives you a valuable opportunity to evaluate the user-friendliness and functionality before you onboard and train a solution for the long term.
Get More Value Out of Your Accounting Software
As specialized accounting solutions become more available, your business isn’t stuck with the same generic solutions that leave something to be desired. When you consider your business requirements and prioritize solutions that are customized to fit your industry, you can get more value out of your technology investments.
Author Bio :-
Michael Bollinger, a Lexington, Kentucky-based entrepreneur, has left a lasting mark on the tech and software landscape. As the founder of LegFi and File990, Michael launched PayHOA.com in 2018 after Togetherwork acquired his first two ventures.
PayHOA is an affordable community management software for homeowner associations that streamlines payments, communication, and vendor management. Beyond his entrepreneurial pursuits, Michael finds fulfillment as a devoted husband and a loving father to his three children.
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