Let’s say you’ve been using the perfect cloud-based accounting software for your business like Xero or MYOB. It’s great for your online invoicing, payroll and purchase orders and your bookkeeper and accountant can easily access all of the necessary information. But, if your business has outgrown the capabilities of the cloud-based accounting software or you’re looking to improve efficiencies within your business, you may need to consider using add-ons.
What is an add-on? An add-on is an additional software program designed to add extra features and functionality to your accounting software.
Most of the cloud-based accounting software products have third party add-ons and even recommended add-on market places on the web. You can find Xero’s Add-On Marketplace here, and MYOB’s Add-On Centre here.
Some add-ons are industry specific, some extract data for external reporting, and some are generic and can help with inventory, HR, POS and ecommerce stores. Generally there are a number of different add-ons available for each sector which could suit your needs. So how do you find the best one? Here are some helpful questions to ask if you are searching for the perfect add-on for your business accounting software.
1. Is your accountant or bookkeeper able to provide support for your add-on?
For a lot of accountants or bookkeepers, the answer to this is no. Most accountants and bookkeepers are only interested in your accounting figures, not the efficiency or ease of use of your software. Your accountant may have recommended you use Xero (or similar), but that doesn't mean they can offer support for any add-ons you may need for your business.
The Back Office Company bookkeepers understand we cannot be experts on all add-ons, but we do know where to go to ensure our clients get the best advice. We can help you find the best add-on to suit your needs and help you project manage the whole process to ensure you get full utilisation of any new system.
2. What are the on-going costs of the add-on?
Just like choosing a new mobile plan, make sure you carefully read the fine print and look into the long term costs. The fees can vary per month, per login and per user for example. The prices may be low initially, but they can quickly escalate. The fees can also become ongoing fixed costs which may be difficult to reduce if times get tough and you need to cut back your expenses.
3. Will Xero (or similar) be releasing their own module with these features?
Before investing in a third party add-on it pays to look into whether or not your accounting software will be bringing out the features you’re looking for in the future. If they are, this would remove the need for an add-on entirely. Sometimes however these new features are untested or very generic and need to be improved before they are actually better than an add-on that is currently in the market. A good example is in the area of payroll where some industries have very specific requirements and a specific payroll provider specialising in that sector may offer a superior product to a more generic one. Talk to one of our experienced bookkeepers to get the full picture.
4. Will your staff have experience in the new add-on? If not, how will you train them?
Finding staff who know Xero or MYOB is becoming relatively easy. However, in contrast, most add-ons have a niche position in the market place. It’s therefore very unlikely that new or existing staff will be experienced in using these add-ons. There are hundreds of add-ons for Xero and the same again for MYOB and other accounting software programs. For this reason it is very important that the business owner, bookkeeper and expert on the add-on work together to ensure the add-on is implemented correctly and meets expectations.
A lot of add-ons are not implemented correctly and there is often a lack of communication between the client, the bookkeeper and the add-on expert. The client needs to be involved with testing to ensure that the add-on meets the businesses needs and improves efficiencies rather than creating additional hassles.
No matter what add-on you decide to use, it’s important to speak to your bookkeeper first to ensure that you have the best advice and training where required. This will help you make an educated decision on which add-on will benefit your business most in the long run. To get the best advice, contact The Back Office Company today.
