Small Business Accounting Software - 7 Points to Know

Picking small business accounting software is likely to be one of those things you don’t give any thought to until about five minutes before you need it. Hey, wait a minute, there’s different kinds? Well, how do I know which one to pick? I’ve never done this before. Fortunately, following these seven points of consideration will reliably lead to the right choice.

(1) Scalability - Of course, you are hoping that your business is ever-growing and expanding, so you want your software to grow with you. It’s worth the time to “think big”, here - you want a software infrastructure that will have been built with expansion in mind. You might be confused when you’re first learning a new program that is built a size bigger than what you currently need, but the capability to expand will serve you better in the long run. For this reason, many businesses choose open source software running on Unix-type systems such as Linux or BSD, because it can be freely modified and improved by third parties at any time.

(2) Support - Just about any accounting software package offer technical support when things go wrong, but you may want to consider the difference between a voice on the phone from a call center and support from someone who lives in your home town. It is often much easier to have someone locally who can come in and do things you need done. Here, the importance of an open, non-proprietary platform cannot be overstated: you don’t want to tie yourself to some company that’s going to quit supporting your software version the minute you have it installed. A local consultant who is qualified will be your best option here.

Here are some extra software sourcing tips.

(3) Stability and Security - The number one target for hackers penetrating a business is the accounting software - there’s the credit card numbers, payroll, bank information, and more. For this reason, consult with the top security experts to find out which platform is the most secure. At the very least, I’d recommend Department of Defense security rating CAPP/EAL3+ or above - easily attainable by such platforms as those offered by IBM or Novell.

(4) Best Value For Money - Well, of course you wanted to spend as little money as possible. Remember that the shelf price of software is only the beginning - if it fails, breaks, or can’t keep up with your business, the damage will far outweigh the cost. So, even though open source software is inexpensive, you should consider that it will also be more stable, expandable, and secure in the long run.

(5) Liberty - The worst thing that can happen is to have a server full of data encoded in a patented, proprietary format by a company that now wants to squeeze some extra money out of you. You should look for the least restrictive format, end-user license agreement, per-unit licensing, and greatest overall permissiveness. In addition, you want portability. For instance, if you were to move from an AIX platform to a Solaris platform, you’d want software and a data stack that can move with you. Don’t be lulled into a sense of false security by what looks good enough for this week - you want to be in business 20 years from now, and look how computers have developed in the last twenty years.

(6) Administration - The importance of an open platform is that it can easily cooperate with other programs and platforms. This is because no accounting program is an island - it has to talk to the printer to print reports and the server to handle the online transactions and the file system to print logs and even be integrated with your Palm Pilot or Bluetooth - remember, the global market is fast-paced, so “think mobile”.

(7) Training - Of course, you will need employees to run this stuff, and it’s going to be easier if you find people who already know it. Doubtless, you will find more accountants are familiar with the Unix platform and its Linux, Solaris, and BSD derivatives, due to its solid penetration on related systems such as servers and point-of-sale systems, and also because IBM (International Business Machines) has a long history of being favorable to Linux.

Here’s some software that I’ve used in the past and feel comfortable in recommending, it’s called quicken and is highly reliable.