Choose the Right Accounting Software

By Christie J. Banks, CPA

Functionality

Do you just need a basic general ledger program or do you need to track inventory and point of sale entry? It is important to look at what functions you need your software to perform. Depending on how much you want to spend, your software can do everything from helping reconcile your bank accounts to keeping track of job costs to tracking the assembly of different inventory parts into a finished product.

Another item to consider is the integration of your accounting software with other products. If your software has an “open database”, you will be able to pull your financial information into other applications such as spreadsheet or word processing programs, as well as database or report writing programs. You will want to look at how flexible the software is and whether you will be able to customize it to your needs.

You will also need to look at the number of users that will need access to the program and where they will need access. Some companies may find it easier to use an online accounting package so that the user does not have to be sitting at a specific desk or office to access the information.

Almost every industry will have software that is industry specific. They may help you in not having to customize your software to your specific business. The advantage in using a general accounting package rather than an industry specific package may be in how easy it is to find or train an accountant or bookkeeper to understand and use your accounting software.

Cost

When looking at the cost of software, it’s important to take into consideration more than just the shelf price of the software. Installing the software will also take a certain amount of time and money. You should probably plan on spending anywhere from 50-100% of the cost of the software for installation. For a small company changing software, the conversion time may take as little as half a day. For large companies, changing your accounting software may take as long as six months or more. Either way, it is probably worth your time to have someone qualified help you with the conversion. Your brother-in-law may be free, but make sure he is familiar with the software, as well as with your accounting system. It is much cheaper to setup the software correctly at first than to have to go back and redo some of your accounting.

Remember, also, that there will be some costs associated with training your employees to use the new software. Also, if you’re not doing your accounting correctly, keep in mind that switching accounting software does not automatically fix this problem.

One of the other costs you may want to consider is the type of support the software developer will provide. Some developers have great customer service, while others will require you to wait on the phone for long periods of time in hope of getting a competent support tech. Also, each developer will have a different fee structure for support. Some may offer free online support, where others charge minimum and hourly fees.

Whether the developer is on the “cutting edge” of technology is also an important consideration. With the number of companies that have sprung up in the last several years, only to disappear after a year or be acquired by a larger company, it’s important to look at the history of the software developer. Look to see if the company appears to invest a large amount in research and development and whether they update their software on a regular basis. If a company falls behind on updating their product, they may eventually go out of business, leaving you to once again find new accounting software.

Summary

Every business has different needs and wants when it comes to accounting software. Choosing the right one will help reduce future costs and frustration. Feel free to call one of our technology specialists at 801-225-6900 to review specifically which accounting software is going to work best for you. We’d love to help you! Thanks!