2009 Review of Small Business Accounting Systems: Tier I (Programs Under $1,000)

Small businesses today are not like small businesses were just 20 years ago.
Technology and flexibility play an important role in the management of even
the smallest business today. Many business owners want to be able to access
their data anywhere, anytime. They want email integration and the ability to
sell products on their website. They also want a product that can be easily
installed, quickly mastered, and provide the information they need when they
need it.

As a result, entry-level accounting software products have continually evolved,
straining to keep up with consumer needs. Vendors have upped the ante, adding
more and more features and functionality to such products, enabling these products
to be more competitive than ever before.

Another sub-set of small businesses is simply looking for a way to get their
business records automated … and stay automated. Products are available
for this group of business owners, as well.

While enterprise-level accounting products are still prevalent in today’s
market, the downsizing of many companies coupled with the rise of small business
owner purchasing power has fueled the vendors to create products that are more
powerful and suitable for just about any size business.

This year’s Small Business Accounting review is split into two
tiers. For the purposes of this review, Tier 1 products cost less than $1,000
for a five-user system that includes GL, AR, AP and Payroll functionality.

These products work well for small businesses that don’t require extremely
complex features. Tier 2 products will be reviewed in the June 2009 issue and
will feature products that cost more than $1,000 but less than $5,500. Hopefully,
this split will make it easier to narrow down the vast selection of small business
accounting products that are suitable for your clients’ needs as well
as their pocketbooks.

Many small business accounting programs offer tax and accounting professionals
simultaneous access to these programs, enabling them to work alongside business
owners. This is a common-sense feature that probably should have been available
in financial software products long before recent years.

This dual access makes it easier for small business owners to do what they
do best (provide their services and sell their products) while allowing professional
accountants the ability to do what they do best (manage their clients’
cash flow, monitor expenses and track trends in order to provide the analytics
their clients pay them for). Easy program accessibility also ensures timeliness
instead of a mad dash to complete everything in a rush to close out the year.

When choosing an accounting product, it’s important that the person/people
who will be using it get to weigh in on the purchasing decision. While accountants
can and should recommend a good product, it’s vital that the business
owner be comfortable with that product, as well.

While all of the products reviewed here are sufficient for small business financial
management, it’s ultimately up to you and your client to determine what
will work for their very unique situation.

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Mary began her career as an accountant in the property management industry,
later moving into the healthcare industry. She is now a freelance writer specializing
in business and technology issues and is the author of her first book, several
HR handbooks, training manuals, and other in-house publications. She can be
reached at marygirschbock@cpata.com.