It is critically important to choose the right software for your business needs. The software can be a major asset in running your business if it is chosen with a view of the kind of information you need on a regular basis to control costs, profitability and flexibility in adapting to current and future needs.
In looking for the right software supplier, I suggest the following considerations:
1. How long has the software company been in business?
2. Is it a nationally known company?
3. Do they have good product support?
4. Do they have bug reports and regular updates?
5. Do they charge for updates?
6. How long will the product be supported before you have to upgrade?
7. How does the cost of the package compare with competitors packages?
8. Is there on-going third party training available?
9. Do they have good manuals?
10. Are mass market books available?
In looking for the right software package, I suggest the following considerations:
1. Types of Business Entities: Sole Proprietors, Corporations, Non-Profits?
2. Is the system modular or integrated?
3. Accrual system of accounting?
4. Chart of Accounts - sample charts supplied? Can you setup your own?
5. Does it allow for cost centers or profit centers?
6. Does it support Budgeting?
7. Does it support inventory?
8. Does it support Purchase Orders?
9. Does it handle Job Cost?
10. Does it have good built in help?
11. Does it guide you through the setup process?
12. Will it export data to spreadsheets?
13. Will it export data to third party tax preparation software?
14. Does it have P/R included?
15. Does it have a report generator?
16. Will it handle sales taxes?
17. Will it handle finance charges?
18. Does it have built in form capability?
19. Can it use generic off the shelf forms or does the vendor require special forms?
Depending on whether your business is a product oriented or service oriented business will determine what questions need to be asked. An experienced professional adviser is a great asset in the selection process. Accounting personnel as well as management should definitely be involved in the selection process because they are all users and the selection process can benefit from their input.
A product comparison can be prepared in a spreadsheet such as Excel which has the packages listed across the top and the attributes/functions you are looking for listed down the side. Spending time in the process can prevent dissatisfaction on the part of management and accounting personnel.
The purpose of the "Small Business Accounting Blog" is to provide current information on all areas of small business accounting. It includes software packages, accounting systems and procedures, and guidance in all areas of general accounting: General Ledger, Accounts Receivable, Accounts Payable, Payroll, Budgeting, Financials, Taxation and Credit and Collections
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About Me
- Allan L
- Allan Lindquist is an Accountant with 30 years experience in various positions up to and including VP Accounting Manager and Treasurer/Controller with Profit and Non Profit Organizations. He brings unique insight, clear instructions, and over twenty-five years of experience to all of his Accounting articles. Owner of Lindquist & Associates, Allan’s clients enjoy these same benefits on a personal and regular basis. You can too. Contact Allan at allanlindquist@valornet.com today
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