It makes good business sense to use the latest technology and software
for your business accounting needs. Manual accounting systems can be
highly error prone, and interfere with your company's order-to-delivery
process. So, why not make it easier on yourself?
If you're thinking of making a change from a manual paper-and-pencil
accounting operation, you've got a few things to consider:
"How can I tell which software
is the best performer, and if it's right for my business?"
"I'll have to learn how to use
the new software, and I don't have much time to spare."
"How do I transfer the accounting
and other financial information to the new application?"
What Functions Will You Need?
In evaluating accounting software, you want to install applications built with
small business users in mind - rather than consumers, or big company
treasurers, comptrollers and others involved in high-powered managerial
finance, cost accounting and other mysterious applications that you're
unlikely to need.
While it's true that vendors of personal finance and checkbook writing
software provide accounting functions that can be applied in your business,
you're still better off with a small business accounting toolkit - simply
because you'll have more functionality and hence more effective controls.
Some Key Questions to Ask
Before you order new software, here are some questions to ask vendors as you
compare different product options:
Is the software license open-ended,
so you can run the application on as many computers in the business as is
necessary? If not, what will it cost to extend the program to additional machines?
How versatile is the program? For
example, can it handle the distinct accounting needs of your company compared
with project budgeting?
Can you easily convert data from one
document type or another? For example, you may have begun by preparing an
estimate for a customer. Now you need to convert that to an invoice for billing.
Can you control access to your
accounts? Can you restrict access by specific function? For example,
you may need to give certain employees access to key financial data,
but you may not want them to be able to write checks with the software.
If that's so, you'll need a system that has tiered levels of access
combined with a master password and sub-passwords.
Can you compare actual expenditures
against budgeted expenditures? Most software has this important financial
control feature, but it doesn't hurt to check.
Are the fields easy to navigate,
with commonly understood terms? Not everybody who needs to work with accounting
data has been trained in the language of accounting. Look for software that
terms and instructions are easy to decipher, with a user interface that's
intuitive for the user.
