Choosing the best accounting software

It is important that you:

• check it will save you time and money
• dare to be different
• choose the best.

Look for a system that delivers more than just financial accounting. It is now routine for a good system to include timesaving and efficient sales and purchase order processing. This means that when a sales order is taken, stock levels are automatically checked and when appropriate a purchase order to replenish stock is proposed.

Do not accept an assurance that a software product is “good” without checking that it is suitable for your type of business. For example, a company raising invoices for services may be better with an integrated package, whereas a company raising invoices for goods and services will invariably find a modular product better suits their needs.

To find out more about the differences between modular accounting packages and integrated products.

The best accounting software is capable of being customised to directly meet the needs of the user.

In some cases external accounting and audit costs should reduce by 50% as a direct result of computerising the accounting function. However, in many cases the cost savings will more than pay for the entire system in the first year.

A written quote should include costs of hardware, software and manpower and demonstrate how the accounting software will meet your defined objectives. You may wish to consider leasing as an option to outright purchase.

Many of the most successful small to medium sized enterprises owe their success not to doing something completely different, but to doing something quite commonplace a little differently. These subtle variations can most often be seen in their approaches to customer service and their sales and marketing techniques.

The problem, emphasised in most integrated packages, is that accounting software rarely supports user’s efforts to differentiate themselves from the competition. Therefore, don’t choose a system that stops you doing things differently.

Choosing the best software

Sophisticated, stable and customisable accounting software is difficult to write and thereafter to support and develop. The biggest five names dominate over 90% of the general market and have the resources to provide ongoing support and undertake the necessary research & development to launch upgrades on a regular basis that keeps it up-to-date with technological advances and user requirements.

Accounting software divides between integrated and modular products. Both can be excellent in the right situation. Integrated software products tend to be most suitable for smaller businesses, with relatively few and uncomplex transactions. Modular products are ideal for those with more complex sales, purchase order processing and stock management issues to address. Accountants and auditors may recommend unsuitable integrated products because it is what they use and understand. However, just because it is ideal for their needs doesn’t necessarily make it the right solution for you.

At the heart of integrated products is their relative ease of use, DIY installation and the possibility of remote telephone support. In integrated products, customisation is given a low priority. Modular products, by contrast, are designed to be labour saving in sales, purchase order and stock management and are made to be customises to fit with the user’s precise needs.

It is often said that “with integrated accounting software, the user has to fit with the program and that with modular programs, the software fits with the user”. There is nothing wrong with either of these approaches. The trick is to choose the right product and to have it installed and customised to the highest standards.

Leasing often makes good sense. There are many reasons for leasing including ease of budgeting, ease of upgrade and leaves valuable cash in the bank for more profitable purposes. In addition, there may be substantial tax advantages from leasing.

Software for industryConstructionDistributionNot for profitManufacturingBusiness ProcessesOrder processingStock controlInvoicingE-commerceJob costing & CISManagement reportingSoftware ProductsChoosing the best accounting softwareExchequer