In today’s time, we have designated applications for almost every aspect of a business. Be it for inventory, human resources, or accounting. With the digital approach to every business aspect, these applications and software are, if anything, a blessing to the economy.
With the help of these technological advancements, business activities have become more efficient, effective and have better results. However, despite such ease, there are a few factors that have business owners confused and in a dilemma. One such issue is the question — should a company go for a ready-made solution or opt for a custom accounting software that provides tailored functionality for business-specific accounting needs? Especially for an impactful area like accounting, such decisions can have an immense impact.
Therefore, in this article, we will take our time addressing this confusing question of whether you should opt for ready-made or custom-made solutions for your accounting department.
Understanding the difference between the two
Let us first take our time to understand the difference between the two. When talking of custom development or custom-made solutions, a company hires a dedicated team that makes the software from scratch, keeping in mind the needs of the company and conditions unique to it.
However, for ready-made solutions, these are readily available and can be purchased and easily integrated into a company’s existing systems.
When it comes to understanding which kind of solution will be best suited for your needs, you need to do the following:
- Understand the scope of your work, in this case, accounting
- List down your requirements for the work
- Make a list of the most needed features
- Consider your budget
Once you have a good understanding of the listed factors, you will be able to understand which type of solution would be best for your job.
Custom Development vs. Ready-Made Solution
Now that we have a good understanding of what these two types of solutions are, let us now take an in-depth look at what makes these two types of solutions different from each other, along with their individual advantages and disadvantages.
Custom Development Solutions
If your company is big in size or can afford a big budget, you can opt for this as it allows you to adapt the solution completely for your company’s needs. You can add the necessary features that you want for your cause.
Also, in this kind of solution, you get complete ownership of the solution, so you don’t need to consider or depend on third-party decisions. This also includes the factor that you need to not pay subscriptions or worry about extra expenditures over additional features.
However, the issue will be in funding and resource management as you would need a hefty budget, a team of developers, and a long period of time for the development of the solution.
As for this type of solution, they are easy to find, install, integrate, and cost much less than custom-made solutions. However, there are limitations from a customization point of view. You would need to either upgrade your plans or pay an extra amount for additional features.
This kind of solution is perfect for small businesses who are just starting out or companies who do not require too complicated software structuring or have complicated demands.
For accounting purposes, having a ready-made solution is more than enough. However, if your company has additional requirements or features, it is better to opt for custom developments. Either way, to understand which kind of solution would best fit your needs, you can start by understanding the features that you want in your application, the project’s scopes, and your ultimate goals with the software.