Small Business Accounting Software – 2005

That’s where the right accounting package can greatly assist the small business client and the accountant that provides them with write-up, trial balance, tax compliance and other services. The small business accounting market is mature, with many options that are geared toward
specific types of industries, and most programs offer the ability to customize to certain kinds
of businesses.

But to be effective for a small business, these programs must cover the “hard accounting” work with an interface that enables a non-accountant to move throughout business tasks such as entering invoices, ordering
inventory, receiving payments and paying bills, while the program automatically takes care of the journal entries, transactions and monitors account balances, due dates and other tasks.

All of the programs reviewed in this section provide the basic tools that will help a small business properly manage their books. Most of the programs include additional modules (whether included in the base price or available as an add-on) for managing inventory and payroll, performing basic financial analysis, customizing reporting and managing bank accounts. A few offer more advanced options, including point-of-sale devices, greater human resources management and payroll functions, time-based billing, expanded inventory capabilities and increased contact management tools.

In addition to the programs reviewed in this section, information on a few additional small business bookkeeping products is available here.

The key to finding the right software for a small business is to first determine the primary needs of the company, whether it’s a retail, manufacturing, wholesale, nonprofit or service-based enterprise, and then to find a product that meets those needs and that the business’ owners or managers will actually use.

After consulting with professional accountants and vendors, we identified several areas that are key in the selection of a small business accounting application. Each program was rated based on a scale of up to five stars in each of these areas.

Ease-of-Use/Basic Functionality

This section addresses the ease with which non-accountant users can perform the basic tasks required for daily operation, from initial setup of the program and entering estimates and invoices, to receiving payments, managing vendors, and paying bills and employees.

Available Modules/Customization for Vertical Industries

This area focuses on functions within the program aside from GL, AP and AR. All
businesses have to pay their employees, even if there is only one. All businesses have to manage their clients and vendors. What tools are
available to assist the user in running the
business? With such diversity in the types of small businesses, this section also looks at how the programs can be customized to suit the traditional needs of particular types of businesses.

Expandability

Hopefully, your clients’ businesses will succeed, but sometimes growth can be painful. The expandability of a program refers to its ability to grow along with your client, providing your client with increased capabilities as its needs grow more complex. This is traditionally accomplished either through add-on modules with more powerful tools, or through companion products that the user can graduate to when business growth necessitates.

Reporting & Management Functions

Here we address the quality, comprehensiveness and customizability of the reporting options within each program, as well as additional tools such as analytics, forecasting, productivity measurement, and staff and employee management.

Audit Trail, Integrity & Accountant
Control Tools

An audit trail is imperative to an accounting program, enabling the management or accountant to drill down to specific transactions and entries, helping prevent fraud and errors. Almost equally important are the security protocols that can be implemented to prevent unauthorized access or actions. These are generally password options, but there are a variety of ways they can be utilized that provide greater security.

Help & Support Options

Everyone has run into problems with a software program, whether system errors or lack of user knowledge. When non-accountants find themselves working in an accounting program, the odds that support will be necessary increase greatly. Therefore, a strong and easy-to-use built-in help utility is imperative, and context-specific help is a big plus, as are system tutorials, new user guides and training options. Additional online support tools such as faqs, a knowledgebase and a user community further assist the user. If the system is light on support, the user may call their accountant for tech help. Now who wants that?