The Five Types of Software that Every Business needs

Every business needs to keep track of the flow of money, goods and activities throughout the organization. Even if the operation is a small business, there are basics that can make running a business so much easier. The five main types of software a business typically needs include: Billing and Invoicing, CRM, Project Management, Inventory Management, and Communication Software.

• Billing and Invoicing

  This is the bread and butter of keeping a business on track. Although it is primarily focused on generating invoices for clients, tracking payments, and managing outstanding balances, this is often a basic feature within a broader accounting software. This also helps managing days sales outstanding (DSO), a means of tracking the aging of your receivables.

• CRM (Customer Resource Management)

  A CRM tool helps manage the people side of the business, including prospects as well as existing customers. Think of it as a set of actions which build up to a story of who each person is that you do business with (or could be doing business with). Behind every account is not just some numbers, it is also a story and this is a way to record and share that story with the sales and marketing teams and make your customer relationships more personal.

• Project Management

  Whether small or large, each company needs to have a plan. Project management software not only is a way to express the nuts and bolts of the management plan, it is a way to share it. Sharing it helps bring everyone on board so they know their role in the bigger picture. Often, such programs are available to be accessed through a web browser, allowing users to access the company plan from anywhere with an internet connection.

• Inventory Management

  It’s surprisingly easy to lose track of the bits and pieces that go into making a product, whether it’s a physical device or a service contract. Even virtual inventory is supported by real deliveries, billings and costs of the business (a server in the case of software). Inventory is not just for large manufacturing operations, but any operation that needs to keep a flow of products and/or services in a pipeline and keep track of deliveries and updating product releases.

• Communications

  This may seem a little surprising on this list, but ever since the 2020 pandemic the role of communications became critical. Suddenly on-line meetings became the normal way to communicate to just about everybody. This turned out to be a really good thing, as group meetings can easily be expanded no matter how many people needed the information. Meetings could also be recorded and reviewed later in case somebody missed it. Meetings suddenly became accessible and inclusive in a way that they were not before. Good communication is the lifeblood of any organization.

When looking for any one of these five software types, the advice is really the same in terms of what to look for:

• Ease of Use: This is the most important of all. You want a user-friendly interface with intuitive navigation. If you can’t easily figure out how to use it, you won’t get the most out of it.
• Features: Don’t get all dazzle-eyed about fancy graphics. Look for functionality that matches your business needs. Look for the inputs that you need to provide, and the outputs that you expect to get. Lots of extra features are no good if you don’t need them or they require a lot of training to get the users up to speed.
• Integration: Ability to connect with other business tools like billing, CRM systems, bar coding, security and payroll providers.
• Scalability: Your business (hopefully) is poised for growth so you do want to look for the capacity to handle increased transaction volume as your business grows. It doesn’t necessarily mean added features, although it could. Growth may be as simple as adding more user licenses, or a secure, dedicated server. Be sure you know what it takes to scale your operation.
• Customer Support: When you’ve decided that you need to add to or upgrade your software in the five areas mentioned, you’ll want to know what the plan is if you have difficulty with the integration or operation of the product. This can include uptime guarantees, so many hours of tech support over the phone or in person, or a dedicated tech person for your account. Ask the tough questions and make sure you can live with the answers the vendor supplies.

Good software, easy to use, that covers your needs, can seamlessly integrate into your operation. Consider each of the five areas mentioned, and if you find the right match, move ahead with confidence that your company is moving in the right direction and ready for the future.