Accounting software is one of the more useful purchases you can make as a business owner, given that you choose the right system for your level of computer expertise and accounting knowledge. Here are some pointers to help you find the right one for your business.
Your first step is to make a list of everything you need your accounting system to do. If you are a service business, do you need a time reporting and billing system? In a retail businesses you will most likely want to track inventory. Do you also need the inventory system to be updated at the point of sale? Construction and manufacturing companies may need job or project costing systems. Do you expect to have a large number of assets? If so, you may want an accounting system that includes a fixed asset package.
Will you be setting up the system or doing the accounting yourself? Consider what type of product support is available for installation and setup, using the system as well as technical support. Do you need to be able to prepare special reports or will the standard reports that come with the system be sufficient for your needs?
What are the growth expectations for your business? Off-the-shelf packages are easy to set up and use, but may have a limit to the volume of transactions or number of concurrent users.
Once you have an idea of what all you will need in a system, look at a variety of software packages, comparing features. There are many products available with a wide array of features and capabilities, and price ranges vary widely too. Talk to industry trade organizations to find out what packages are commonly used in your industry. After you have narrowed your search, talk with your accountant to get their opinion on which product might most easily integrate with the accounting system they are using.
There are essentially five major accounting software producers each of which offer a variety of packages depending upon the needs of your business:
Intuit produces Quicken
and Quickbooks. Quicken is for individuals who are operating a small business with no employees. Quickbooks handles employee payroll and other more complex financial reporting. For a while Quickbooks discontinued supporting Macs, but has recently reintroduced a Mac version of its most popular edition.
Best Software produces Peachtree Accounting. Peachtree is an entry-level accounting solution for small businesses transitioning from a manual or personal finance-based system. It includes invoicing, bill paying, inventory tracking, payroll, order entry and over 100 customizable reports.
ACCPAC produces Simply Accounting. It is an easy-to-use, complete accounting solution for small businesses that helps you get set up and running in minutes using wizards, has over 100 industry-specific templates to choose from, handle payroll in-house, prepares invoices, writes checks, tracks projects, and manages inventory.
MYOB produces MYOB Plus and MYOB Accountedge. Both packages have accounting and business management tools including the ability to email financial and management reports, invoices, quotes, and orders, send reports to Microsoft Excel and create ready-made letters, track your profit and loss and other financials, and accept and process customer credit cards; offer direct deposit. The difference is that MYOB Plus is for Windows only, while MYOB Accountedge is for Mac operating systems.
Microsoft produces Money and Money Small Business. Money is for individuals who are operating with no employees. The small business version includes payroll and other employee-related accounting systems.
