How do I choose scalable accounting software for growth?

This article was paid for by Intuit Enterprise Suite.

Some small businesses can handle bookkeeping with spreadsheets, DIY invoicing and ad-hoc expense approvals. But if you're building for growth, you need accounting software that can evolve with you. 

"The last thing you want is to find out you've outgrown your system a year or two after you installed it," said Chris Tomaselli, a partner at the Atlanta-based national accounting firm Bennett Thrasher.

Being saddled with inadequate accounting software leads to incomplete data, reporting errors, compliance issues, duplicate records, and, eventually, the headache of moving to an entirely new platform.

A scalable platform like Intuit Enterprise Suite will help you avoid these hurdles. Make sure any system you're considering meets the following criteria.

Your business may need to track revenue from client services, e-commerce and point-of-sale product sales, among other sources, and work with different platforms.

"The struggle is connecting the dots and moving the information to the actual books of the business," Tomaselli told CNBC Select.

Make sure a provider integrates with other software you use, so all of your financials can be tracked and reported seamlessly.

Look for a platform that can integrate:

• Bank accounts
• Credit cards
• Invoicing, billing and accounts payable
• Payroll services
• Point-of-sale systems
• E-commerce platforms (Shopify, Amazon)
• Payment service providers (PayPal, Stripe)
• Tax preparation software

Using a third-party provider can mean increased cost, delays in data migration and issues with security and reliability, so focus on accounting software that integrates directly, such as Intuit Enterprise Suite.

Nearly every software provider touts its AI tools, but not all of those features are necessary — or even helpful. Don't let yourself be dazzled by AI agents or automation flows that require more work to set up than they save you on the back end, Tomaselli said.

"The goal is to drive home efficient workflows and have team members focus more on analysis and forward-thinking, rather than mundane, manual tasks," he added.

Understand your team's workflow so you can search for features that'll actually free up their time.

IES has an AI-powered accounting agent that automates tedious bookkeeping tasks, like removing duplicate entries and categorizing transactions, allowing your accounting department to focus on audits, forecasts and other higher-impact projects.

Adopting an organized approval process can be difficult for a growing company.

"Accounts payable may be struggling to keep up with the volume of invoices," Tomaselli said. "And proper approval may suffer in the shuffle."

To ensure team members aren't hamstrung while still only accessing features they have clearance for, choose accounting software with robust permissions and approvals options, as well as audit logs that show who performed which tasks.

Any scalable accounting software should include powerful financial planning and analysis tools. That might include the ability to customize reports or an AI tool that automatically generates and summarizes data.

Spreadsheets might work for now, but at scale, they become hard to manage and error-prone. Your accounting software should make it easy to draw directly from your financial records to identify trends and opportunities.

Intuit Enterprise Suite streamlines financial planning and analysis with:

• Centralized data for multi-entity businesses 
• Multi-dimensional reporting that lets you analyze across 20 business metrics
• Customized reports tailored to specific stakeholders
• AI-powered recommendations on resourcing and budgeting
• Data from areas like payroll and payments for holistic planning

Business growth may also mean more complex tax and financial reporting requirements. Choose a provider with stronger compliance support than what your company needs now, so you're not forced to switch systems later.

Look for software that supports accrual basis reporting, Tomaselli suggested. Cash basis accounting is fine for businesses just starting out, he said. But larger entities will need advanced reports to comply with generally accepted accounting principles.

IES lets you switch between cash and accrual reporting to see how your finances look under each method.

Knowing what you can afford is important, but Tomaselli said, don't begin your search with a price ceiling that rules out valuable providers. 

Instead, start with a list of must-have features and capabilities. Then filter out the bells and whistles you don't need to lower the price tag. Intuit Enterprise Suite works with businesses to craft modular product bundles that give you the options you need now, while leaving the door open for more features as you expand. 

"You get what you pay for," Tomaselli said. "Selecting a lower-priced option may seem wise initially, but it could lead you back to where you started."

To learn more about Intuit Enterprise Suite, click here.