Generic giants to niche specialists: How accounting software changes with industry-specific solutions
When you consider all the digital solutions available today, accounting software and services are the most common investments for growing businesses. These platforms often provide a variety of all-in-one feature sets that allow organizations to manage and track their finances efficiently.
However, many software solutions are designed to appeal to a broad audience, introducing generic elements to be used across a wide range of industries. While this can be helpful to many businesses, it can fall short when used for industry-specific use cases.
In answer to this issue, software developers are now focusing more on creating more specialized accounting solutions designed to give certain organizations the specific support they need to handle their accounting processes more efficiently.
The rise of accounting software options over the years
In earlier years, when accounting software solutions started hitting the market, any support organizations could get to organize and simplify their financial processes was welcome. This led to a steady stream of developments in primarily on-premise solutions that could provide:
- Basic bookkeeping processes
- Invoice and partner management
- Financial analysis and reporting
- Payroll support
- General ledger organization and maintenance
Popular solutions like QuickBooks and Peachtree (now known as Sage 50) were some of the larger accounting solution giants that are still marketing solutions today. The original tools they developed were designed to meet the needs of a broader market of business types, with the primary goal of providing an affordable software alternative to hiring large accounting teams.
Although these generic solutions have continued to benefit many organizations over the years, they do have certain limitations for unique business models.
How various industries’ accounting needs are changing
While traditional accounting solutions have their place in most modern organizations, certain industries have developed more specific accounting needs requiring more specialized accounting software. With this unique requirement becoming more known, software development teams are now focusing their attention on creating solutions that benefit specific industries:
- Construction – The construction industry often has complex project management activities along with meticulous cost control across multiple providers. The type of accounting software construction companies require needs to be able to support multi-project-based accounting processes while also allowing them to quickly manage change orders and streamline their subcontractor billing activities.
- Retail – Some retail chains manage large amounts of inventory across multiple locations while also adopting an omnichannel marketing strategy. This requires the use of an optimal accounting system that can integrate seamlessly with point-of-sale systems, e-commerce websites, and third-party inventory management systems.
- Healthcare – Healthcare providers are required to manage multiple complex billing procedures, including insurance claim processing and direct patient invoices. They also need their systems to integrate seamlessly with various electronic health records (EHR) systems while remaining compliant with a wide range of regulatory compliance standards.
- Real estate – The real estate sector is another area where traditional accounting software programs can struggle to keep pace. Today’s real estate agents need to be able to syndicate the use of property management tools, tenant tracking systems, and their accounting functionalities into a single platform. This allows for efficient expense management and more accurate monitoring of property expenses while assisting professionals with growing their portfolio of clients.
What steps are software developers taking to address shifting demands?
To help improve the usefulness of accounting solutions for specific industries, development teams are now introducing the following into their SDLCs (Software Development Lifecycles):
Specialized features and workflows
Rather than building one-size-fits-all accounting solutions, more developers are starting to incorporate unique features designed to address certain industry-specific challenges. These include everything from project costing tools for construction firms and contractors to more advanced inventory management platforms of in-store and online retailers.
Industry-specific terminology and reporting
For some organizations, generic accounting software solutions can sometimes feel like trying to fit a square peg into a round hole. To help create more purpose-driven solutions, developers are starting to specialize their software, using more industry-specific terminology and reporting formats that not only make the solution more interesting for users but valuable and relevant for their unique business case.
Improved compliance tracking tools
There are a variety of industries that are heavily regulated, and businesses in certain niches need to invest in solutions that help them ensure they can stay in compliance with these requirements. Software developers are helping these organizations by building robust compliance tracking tools into their accounting solutions.
These features help businesses to better manage compliance audited while alerting them when potential issues in their financial records need to be updated to support regulatory requirements.
Open-source integration capabilities
Most modern businesses rely on interconnected systems, bridging their accounting needs with other tools and services designed to streamline operations.
To help facilitate this further, software developers are now embracing more open-source design philosophies, creating vendor-agnostic solutions that allow customers to integrate other tools into the digital ecosystem more easily. This will enable organizations to have one unified view of all business areas while keeping their accounting functions more efficient.
How to find the right accounting solution for your business
Choosing the right accounting solution for your business is critical. Below are some steps you can take to make sure the software you pick is relevant to your unique requirements:
- Consider what your business really needs – Before deciding on a particular type of software, you’ll want to make sure you create a list of the features you need to help your business move forward. Think about the accounting gaps you still need to fill and what type of integration capabilities you’ll need. This will help shortlist your options.
- Research and compare options – Once you have a strong understanding of your “Must haves,” you can start comparing different accounting software providers. You’ll want to find a solution that is specifically designed for businesses in your industry with customized features to support your business’s workflows.
- Take advantage of demos and trials – Although not all providers may advertise this, most accounting software providers will work with you to provide a product demo or free trial period. This is the best way to get a real feel for the solution’s functionality and user-friendliness to ensure it’s the right fit before making a long-term investment.
Increase the value of your accounting software
Considering how more niche-specific accounting solutions continue to be developed, businesses shouldn’t feel like they have to settle for a generic accounting solution for their organization. By looking hard at your business requirements and prioritizing purpose-built solutions for your industry niche, you’ll get much more value out of your technology investments.
Author bio:
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.
