Accounting Software Desicions

Quickbooks, Peachtree, MYOB, Netsuite, Simply Accounting, Microsoft Money.

Here are some things to consider before purchasing accounting software for your business:

Capability

Your first step has to be an assessment of your business' accounting needs. Do you sell goods or services? If you sell a product, then your accounting system needs to be capable of tracking your inventory. If you sell a service, then a client tracking system would be another important feature.

Either way, your software should be able to meet your tax reporting, invoicing, and payroll needs in addition to the basic accounting features required to monitor ongoing sales and expenses. But be careful! Buying an oversized software program can quickly burden your accounting department with an unwieldy and impractical record-keeping system.

Expandability

Growth should be a part of every entrepreneur's long-range plan. As your company grows, your accounting software should, too. By planning for growth when you purchase your software, you will save yourself unnecessary costs and headaches down the road.

Many (but not all) accounting software providers intentionally design their products with expansion in mind. The key is finding one that allows you to purchase expansion components or upgrade to a larger system at a discounted price.

It's also important to purchase software from a reputable company that will still be in business when you are ready to upgrade. If they are no longer around when it's time to expand your accounting system, then you will most likely have to start all over with a brand new system.

Compatibility

Something else to think about is whether or not your new software will be compatible with the hardware and software you are currently using.

The most obvious compatibility issue whether or not the new software will function with your computer's operating system (e.g. Windows). Beyond that, you will need to know whether the new software is capable of importing the data from your current accounting program or spreadsheet. If you can't import from your existing program, just know that you will need to re-enter a certain amount of old financial data into the new system, particularly if you are transitioning to the new system in the middle of your business' fiscal year.

Cost

Cost is always a consideration and to some degree, the effectiveness of your accounting software will be determined by what you are willing to pay.

Accounting software programs can be purchased for less than $100, but these programs are typically limited in terms of consistency and expandability. More reliable programs can cost hundreds or even thousands of dollars, depending on the size of your business.

Accounting software is a wise investment for your business. If your experience is like that of most entrepreneurs, you will find the financial outlay more than pays for itself by enhancing your company's efficiency and productivity.

Ease of Use:

Peachtree is easy to useÐ'--intuitive layout makes each section a snap to learn. Peachtree walks you through each task simply, and relevant reports are easy to reach with convenient shortcuts. Complex tasks are simplified to just a few steps.

Peachtree's Navigation Aid is excellent; the main toolbar breaks business accounting into main categories illustrated with brief descriptions and visual helps.

Setup and installation were simple. Peachtree's setup guide gives step-by-step instructions for all main sections.

Peachtree Complete Screenshots. Click to Enlarge

Help Documentation:

Most of our questions were answered with Navigation Aid. Also, each screen had a help icon. Peachtree also has a help menu on the top tool bar with links to user manuals, online support, and demonstrations.

Accounts Receivable:

Peachtree's Accounts Receivable Section is called Sales. Here you can do all the basics and moreÐ'--even view sales tax codes or track sales reps.

The start-to-finish view of each transaction is one feature that puts Peachtree above the rest; this allows you to see exactly what steps to follow and in what order.

Accounts Payable:

Peachtree's Accounts Payable Section is powerful but simple; you can create custom purchase orders, quotes, and vendor credit memos; print checks and tax forms, but you cannot customize vendor checks.

Payroll:

This section has everything you need to process Payroll quickly and easily. You can run Payroll for some or all employees, print checks, void checks or directly deposit funds.

Inventory:

The user-friendly Inventory Section lets you make adjustments quickly, create assemblies (items to sell as a group), add stocking locations, include product descriptions, and specify the cost method you prefer.

Banking:

Peachtree has all the tools you need to reconcile accounts, make deposits, and six different reports.

Time Billing:

Within this section you can create expense tickets, daily and weekly time tickets, and sales invoices-all printable. You can also create and print up to ten different Time/Billing reports.

Job Costing:

With this tool, you can estimate costs for specific jobs, specify cost codes, and divide jobs according to their phase. You can also track jobs and specify completionÐ'--from 0% to 100%. This section has twelve different reports available.

General Ledger:

Peachtree has excellent General Ledger Entry choices. You can change accounting periods, make ledger entries, and register accounts. There are seven reports available in this section.

Fixed Assets:

Peachtree lets you manage up to 200 different fixed assetsÐ'--anything beyond that requires a monthly charge.

ase of Use:

MYOB organization is intuitive; the Command Center