Broad Range
The choice of accounting software runs the full range from simple cashbook systems to enterprise solutions. Entry level solutions like QuickBooks EasyStart, Cashflow Manager, MoneyWorks Cashbook and MYOB Business Basics, are inexpensive, easy to use and free of accounting jargon, with little or no security tools to track fraudulent alteration. They’re best suited to a small or home business where the owner maintains strict control over the finances. Some entry-level programs can also produce invoices, statements and receipts.
The next step up is typically to a program based on the double entry system of recording transactions. These programs are more complex and are designed to be used by a person with some accounting experience. They include an audit trail and will not allow a transaction to be deleted. Many of these programs include additional features such as the ability to track manufacture of products from raw materials, and integrated payroll and inventory management. There are some solutions suitable for service organisations such as QuickBooks Pro, MYOB Accounting Plus and MoneyWorks Gold, that include time recording tools and these can bill on a time basis.
Most middle range and enterprise accounting programs include a contact management module that allows you to maintain records of your suppliers, customers and employees, to record communication with these people and to maintain a to-do or reminder list. Alan Osrin, managing director of Sage Software Australia cites integrated CRM as one of the significant trends in accounting software. “Probably the largest area of growth is in integrating CRM with accounting software. This doesn’t necessarily mean CRM developers will be developing accounting software add-ons but may involve integration of two separate existing products so they work together,” he says.
In some instances, accounting software developers provide a software development kit that enables professional programmers to add features to the basic software, access the underlying database to create specialist reports, or to export filtered data to other applications such as Microsoft Excel. This lets you use the data stored in the program in other applications without having to re-key it.
Programs for SMEs are typically multi-user, so more than one person can use the program at a time. You can also enable some employees to have different levels of access and security. Most enterprise programs include the ability to work with multiple currencies and multiple companies
For businesses that operate in a Mac environment, there are many mainstream options that operate on OSX, including MoneyWorks, MYOB FirstEdge and MYOB AccountEdge. If your business runs Linux, the choices are fewer and there are no ‘big name’ vendors with products in this space.
Custom Solutions
Many vendors are developing tailored solutions for vertical and specialist markets. MYOB Just Invoices does just that, and prepares invoices, tracks sales and calculates GST received. MYOB also offers custom solutions for law firms, childcare, and building and construction, as well as tools for managing loyalty programs and job management. Sage Pastel Evolution includes modules for lot tracking, annuity billing, serial tracking, manufacturing, multi-warehousing and fixed assets. Sybiz has custom solutions for consulting, clothing and footwear, car rental and aged care.
In terms of delivery, most accounting software is developed to be installed on a company’s own computers. Osrin doesn’t see Australian businesses flocking to the software as a service model for accounting software and suggests they’re preferring to host their own solutions. However, he says, it’s important for applications to be web-enabled. “Integrated mobile solutions that allow for data entry in the field with automated uploading to the central system are important features in mainstream programs.”
Point-of-sale (POS) is another area that providers such as Quicken, MYOB, Sage Pastel and Attache offer fully-featured products or add-on modules to manage. MYOB also has four Retail products, including a specialist program for the hospitality industry. QuickBooks POS integrates with QuickBooks Pro or its enterprise solutions, and Quicken also offers a Retail Starter Kit with not only POS software, but also a cash drawer, barcode scanner and printer.
While most vendors offer some web or online services, Quicken has some specialty offerings such as online backup for backing up your Quicken data, as well as online banking and credit card processing tools.
There are many players in the accounting software market and some have been in the business for many years. This stability in the market is something to take into account when purchasing accounting software. Changes in the law, such as the implementation of the GST and the more recent super choice, require updates to accounting and payroll software—you must have confidence that your supplier will continue to be in business and actively updating their products throughout the expected life of the product.
Whichever program you choose, make time to evaluate it carefully and look out for trial versions that you can use to evaluate the product using your own data to check how it functions.
Think of your relationship with your accounting software as being a form of marriage—find a partner you can live with happily—after all, you’re in it for the long haul.
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