Choosing the right accounting software is a crucial decision for any entrepreneur. Whether you’re running a small startup or a growing enterprise, the right software can save you time, improve accuracy, and help you comply with Lithuania’s accounting and tax regulations. But with so many options on the market, how do you know which one is best for your business?

In this guide, we’ll walk you through the key factors to consider when choosing accounting software, ensuring you find a solution that fits your needs and helps your business thrive.

Why choosing the right accounting software matters?

Accounting software is more than just a tool for tracking income and expenses—it’s the backbone of your financial management. The right software can automate routine tasks, help you stay on top of taxes, and give you a clear picture of your business’s financial health. Choosing a solution that aligns with your business goals and needs will not only make managing your finances easier but also save you from potential mistakes, penalties, or inefficiencies in the future.

Key features to look for in accounting software

1. Ease of use

If you or your team aren’t accounting experts, ease of use should be a top priority. Complicated software can slow you down and lead to mistakes, so look for a solution that’s intuitive and simple to navigate.

• What to consider: Can you easily access key features like invoicing, expense tracking, and financial reports? Is the user interface clean and intuitive? Can the software be easily adopted by non-accountants?

2. Cloud-based access

Cloud-based software allows you to access your financial information from anywhere, at any time. This is especially useful if you’re running a remote business, travel often, or want to collaborate with your accountant in real time.

• What to consider: Is the software cloud-based/online? Can multiple users access it from different locations? Is your data backed up regularly and securely?

3. VAT and tax management

In Lithuania, managing VAT (Value-Added Tax) and complying with local tax laws is a significant part of running a business. Your accounting software should help you calculate, report, and file taxes correctly, while keeping you compliant with national regulations.

• What to consider: Does the software automatically calculate VAT? Can it generate tax reports for Lithuanian authorities? Does it handle tax filings easily and without errors?

4. Invoicing and payment tracking

Efficient invoicing is essential for maintaining steady cash flow. Look for software that lets you create, send, and track invoices seamlessly. It should also allow you to send reminders for overdue payments and record when payments are made.

• What to consider: Does the software allow for customized invoicing? Can it automate invoice creation and follow-up? Does it support multiple payment methods for your customers?

5. Expense tracking and categorization

Accurate expense tracking is critical for budgeting and financial reporting. Your software should make it easy to log expenses, categorize them, and attach any supporting documents like receipts or invoices.

• What to consider: How easy is it to log expenses? Can the software categorize expenses automatically? Does it allow you to upload receipts and other documents for future reference?

6. Financial reporting

Good accounting software provides detailed financial reports that give you insights into your business’s performance. These reports help you make informed decisions and prepare for tax season.

• What to consider: Does the software provide essential reports like profit and loss statements, balance sheets, and cash flow statements? Can you generate these reports easily and customize them to suit your needs?

7. Multi-currency support

If you do business internationally, handling transactions in multiple currencies is a must. Your accounting software should support multi-currency invoicing, payments, and currency conversions.

• What to consider: Does the software allow for transactions in multiple currencies? How are exchange rates handled, and does it offer automatic currency conversions?

8. Scalability

Your business might be small today, but as it grows, you’ll need software that can scale with it. Choose a solution that can handle increased complexity as your business expands, whether it’s managing more transactions, adding users, or integrating with other tools.

• What to consider: Can the software handle more clients, employees, or products as your business grows? Does it offer the ability to add features or integrations as needed?

9. Security and data protection

Financial data is sensitive, and ensuring that your accounting software keeps it secure is vital. Look for solutions with strong security measures, including encryption, user authentication, and regular backups.

• What to consider: Does the software offer secure access with strong authentication? How is your data encrypted? Are there regular backups to prevent data loss?

10. Affordability

While you want all the features mentioned above, your choice should also fit your budget. Accounting software can vary widely in price, and it’s essential to find a balance between cost and functionality.

• What to consider: Is the pricing clear and transparent? Are there hidden fees for extra features or users? Does the software offer a free trial so you can test it before committing?

How SimplBooks meets your accounting needs

If you’re looking for accounting software that ticks all the boxes for Lithuanian businesses, SimplBooks is a solid choice. It’s designed specifically with small to medium-sized businesses in mind and offers a suite of features that make managing your accounts effortless:

• Easy to use: SimplBooks’ intuitive interface makes it accessible for users of all skill levels.
• VAT and tax compliance: Automatically calculates and manages VAT, ensuring compliance with Lithuanian tax laws.
• Cloud-based: Access your financial data from anywhere, on any device, with secure cloud storage.
• Invoicing automation: Create, send, and track invoices, with automated reminders for overdue payments.
• Expense tracking: Easily categorize expenses and upload receipts, with the option to integrate CostPocket for scanning receipts on the go.
• Financial reporting: Generate real-time reports like profit and loss statements, balance sheets, and cash flow reports.
• Scalability: SimplBooks can grow with your business, whether you need to add more users or handle increased transactions.
• Affordable: With transparent pricing and no hidden fees, SimplBooks is an ideal solution for businesses looking to maximize value without breaking the bank.

Choosing the right accounting software for your Lithuanian business can seem overwhelming, but by focusing on key features like ease of use, tax compliance, and scalability, you can find a solution that supports your business’s growth. Take the time to evaluate your specific needs and compare your options, ensuring the software you select will serve you well now and into the future.