Most businesses use some form of accounting software or service to help streamline the financial management side of their organization. While these solutions are certainly valuable for businesses, many offer generic features that cater to a wide spectrum of industry sectors.
Unfortunately, the broad application that most accounting software provides often falls short when addressing unique financial needs or challenges faced by many organizations.
Recognizing this gap, software businesses like my own are now shifting their focus toward creating more specialized accounting solutions. These custom solutions provide organizations with the specific functionalities and features they need to optimize their accounting processes and enhance efficiency in the specific industries in which they operate.
The Increased Availability of Enterprise Accounting Software
In the early days, when accounting software first started becoming readily available, businesses were quick to embrace any tool that could help them scale their finance department capabilities. This sparked a wave of on-premise solution providers who designed software to address basic fundamental accounting needs such as:
Bookkeeping functions
Invoice and vendor management automation
Financial analysis and reporting
Payroll processing
General ledger organization and maintenance
Industry giants like QuickBooks and Peachtree (now Sage 50) quickly emerged during this period, offering software solutions that appeal to a very wide range of organization types. However, the primary objective was to provide an affordable alternative to needing to hire extensive accounting teams.
While these general-purpose solutions have served businesses well for many years, they are rarely designed to support a highly specific business model.
Shifting Demands of Industry-Specific Accounting Requirements
Even though many top-name accounting software services are still in active use and remain valuable assets for many businesses, certain sectors have more specific accounting needs that require more specialized solutions. Software developers are recognizing this and beginning to create more industry-specific accounting tools.
Below are just a few examples of these:
Construction Companies
Construction companies regularly juggle complex project management and strict cost control across numerous vendors and subcontractors. Their accounting software needs to support multi-project accounting, facilitate change orders, and streamline subcontractor billing.
Retailers
Many retail businesses manage extensive inventory across multiple stores and online platforms. They also often plan and execute omnichannel marketing and sales strategies. To facilitate this, they need accounting software that integrates seamlessly with point-of-sale (POS) systems, e-commerce platforms, and inventory management solutions to provide a unified view of their business operations.
Healthcare Organizations
Healthcare providers also have to manage highly intricate billing processes, including insurance claims and patient invoicing. Their accounting systems need to integrate with Electronic Health Records (EHR) while also ensuring the organization continues to meet stringent compliance standards, such as HIPAA.
Real Estate Agencies
Real estate professionals now require specialized accounting software that goes beyond basic bookkeeping. They need solutions that can integrate with property management tools, track tenant information, and provide comprehensive expense management capabilities. This ensures accurate financial reporting and helps them manage and grow their client portfolios.
How Software Developers Are Answering the Call
To improve the value of accounting software for specific industries, development teams are incorporating the following into their SDLCs (Software Development Lifecycles):
Advanced Features for Niche Requirements
Moving away from generic accounting software, developers are creating applications with specialized features to address industry-specific needs. These include tools like project costing software for construction businesses and advanced inventory management platforms for retailers with both physical stores and online sales.
Specialized Reporting
Many organizations find that generic accounting software solutions don't quite meet their specific reporting needs. To address this, developers are creating specialized software that automatically incorporates industry-specific terminology and puts data into highly relevant reporting formats. This approach not only makes the software more user-friendly but also adds value and relevance to businesses.
Software to Support Regulatory Compliance Efforts
There are many industries that need to operate within strict regulatory obligations. To stay ahead of these demands, businesses in specific sectors are looking for more advanced software solutions that can help them streamline their compliance efforts. Software developers are responding by integrating powerful compliance tracking tools directly into certain accounting systems.
These integrated features help businesses to proactively manage compliance audits and receive alerts about potential discrepancies in their financial records. This helps ensure that businesses can quickly rectify any issues and avoid heavy financial penalties due to non-compliance.
More Flexible Integration Options
Businesses today are used to their software having seamless integration capabilities between different systems to optimize their operational efficiency and bring their business ecosystem together under one unified platform.
To improve this ability, software developers are increasingly adopting open-source principles, allowing them to build solutions that are vendor-agnostic. This approach allows businesses to integrate a wider range of tools into their digital ecosystem, providing a comprehensive view of all important business areas while improving the efficiency of accounting processes.
Choosing the Right Accounting Solutions for Your Business
Choosing the right accounting software for your business is crucial. Here's how to ensure the software you select meets your specific needs:
Identify Your Business Requirements - Before choosing software, list the features essential for your business needs. Consider the accounting gaps you need to fill and the integration capabilities you require. This will help narrow down your options.
Research and Compare Solutions - Once you have a good idea on your "must haves," compare different accounting software providers. Look for a solution that’s made for businesses in your industry, and that has custom features that support your specific business's workflows.
Make Use of Demos and Trials - While not always advertised, most providers offer product demos or free trials. This allows you to try out the solution's functionality and user-friendliness firsthand before committing to the solution long-term.
Maximizing the Value of Your Software Investments
With the ongoing development of niche-specific accounting solutions, businesses no longer need to settle for generic software. By carefully evaluating your business requirements and prioritizing purpose-built solutions customized to fit your industry, you can maximize the return on your technology investments.
Author Bio Below: 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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