How Accounting Software Is Adapting to New Industry Needs
- Written by Michael Bollinger, Founder of PayHOA
Accounting software has become a staple for modern businesses. Numerous financial solutions are regularly used for their comprehensive features to support a wide range of accounting and bookkeeping processes. However, while traditional accounting software can be a great catch-all solution for many organizations, there is now a greater need for more industry-specific solutions.
When business accounting software became widely adopted, software developers typically opted for a more broad approach to feature design, trying to create a one-size-fits-all solution. But with more organizations needing specialized features and support, niche market software solutions are becoming more mainstream.
How Accounting Software Has Become More Useable Over Time
Before accounting software was widely used, businesses needed to develop their internal accounting teams to manage their financial processes.
Considering the cost savings associated with greater automation and efficiency in accounting and bookkeeping, it’s no surprise that many businesses jumped at the opportunity to invest in solutions like QuickBooks and Peachtree (now Sage 50) when they first became available.
While these solutions, and many others like them, help to streamline many business processes, many generic accounting software providers target a broad spectrum of businesses while focusing on features like affordability and ease of use. However, today’s organizations, especially those servicing niche markets, have unique operating models and industry-specific requirements that aren’t always well-supported by generic software solutions.
With more businesses asking for me from their software providers, a growing emphasis has been placed on more specialized solutions that address niche-specific needs and improve focus on serving a more targeted group of business customers.
Industries Driving Demand for More Specific Accounting Needs
Even though many companies still use more generic software options for accounting needs and don’t encounter any major hurdles, certain sectors have changing needs that require more specialized solutions. Software development teams are now working to meet this demand by focusing on more customized financial platforms created for specific industries:
- Construction Companies - The construction industry relies on more robust accounting software that can handle the complexities of its operations. This includes additional financial support for major building projects and when dealing with an extensive network of suppliers and contractors. In most cases, construction companies also need to ensure their accounting programs can handle change order management processes and automated invoicing capabilities.
- Retail Organizations - Retail organizations need to balance their inventory across an entire supply chain while also supporting omnichannel marketing and sales strategies. To achieve this, it’s important that their accounting solutions seamlessly integrate into point-of-sales systems, third-party supplier platforms, and e-commerce websites.
- Healthcare Providers - Healthcare providers often need to juggle insurance claims, process patient invoices, and perform other critical financial transactions while also being accountable for maintaining many regulatory compliance standards. Their systems must also integrate seamlessly with their electronic health records (EHR) systems. In addition to helping these organizations manage their financial processes more efficiently, they provide adequate reporting to facilitate compliance audits.
- Real Estate Agencies - Real estate professionals also have a growing need for more specialized accounting software that can help them unify their property management tools and client support systems into a signal platform. This allows them to more efficiently manage their expenses and track all property-related revenues and costs.
How Software Development Teams are Responding to New Customer Demands
In order to better support the various needs of niche markets, software developers are evolving their approaches when designing new accounting solutions. Below are some of the strategies they are now putting in place:
Improved Features and Benefits
Instead of taking a more generic approach, software developers are increasingly importing specialized features and benefits to their accounting platforms. These new improvements are explicitly crafted to address distinct challenges in specific industries.
For example, in the construction sector, organizations can benefit from accounting tools with integrated project management and costing tools, allowing them to get more granular insights into their progress and expenses throughout the year.
More Relevant Designs
Accounting solutions designed specifically for the industry that businesses are in are much more relevant and valuable when used daily. Developers help to provide this experience by creating interfaces and features that specifically support specific industry-specific processes.
This personalized approach to development significantly improves the user experience and eliminates the need for users to translate generic data categories into something meaningful for their business.
Robust Compliance Monitoring Capabilities
Maintaining compliance at all times in more heavily regulated industries is critical for businesses to avoid heavy penalties and fines. Software developers are helping to support this need by integrating reliable compliance tracking tools natively into their accounting solutions.
With the ability to use built-in compliance features, organizations can monitor their financial records in real time while receiving alerts if and when errors are being entered so they can be corrected before compliance audits.
Easier Integration Possibilities
Modern businesses often require solutions that integrate with other tools and software easily. Niche-specific accounting solutions are increasingly being developed on open-source platforms, allowing companies to create their unique digital ecosystem.
This shift gives businesses the flexibility they need to manage inventories, organize customer relationships and make data-driven business decisions using a single platform and not multiple disparate systems.
Choosing the Best Accounting Software Solution for Your Business
Selecting the right accounting solution is important for all businesses. Below are a few helpful tips for choosing accounting software that’s right for you:
- Define Your Needs - Before starting your search, you should create a list of the features and functionalities of an accounting system that are essential for your business. You’ll want to consider all of your pain points, any necessary business integrations with other tools, and any industry-specific reporting requirements you have.
- Explore and Evaluate - Armed with your list of necessary features, you can now start diving into the various accounting software solutions available. Review thoroughly and compare different options while closely examining how the solutions meet your needs. You should also look for customer testimonials or case studies from businesses like yours to ensure the software is relevant and reliable.
- Try Before You Buy - Whenever possible, you should take advantage of product demonstrations and free trials to test the solution before you make a long-term commitment. This lets you see first-hand if there is enough value in different software features and enables you to make sure the platform is user-friendly.
Get More Out of Your Accounting Software
By carefully evaluating your operational requirements and looking for more niche-specific accounting solutions, you’ll be able to maximize the return on your technology investments while helping your business scale successfully.
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.
