Buyers Guide to Accounting Software

The Christchurch Press – August 2000

By Shelley Grell

A flick through the accounting software section of PC Buyer will reveal 23 companies advertising 59 accounting modules of varying prices, levels and functionality. There are also those who didn’t advertise.

Prices start from $225 including GST to a whopping $17,000 for the fully integrated accounting packages. Little wonder why many opt for the cheapest solution and hope for the best. According to the experts, however, if you don’t get the right solution for your business needs, the price you pay further down the line may be more than you bargained for. So if you’re a small to medium business stuck for a suitable accounting solution, make sure you understand your current and future business requirements before you buy.

Fearing the onerous task of reviewing all the options, I spoke with Sparks Erskine Chartered Accountants, NZ Business Support Systems and leading accounting software firms MYOB, Sage NZ and Attaché Software. I also checked out trial versions of MYOB and Attaché software and visited the web sites of Sage NZ and Quicken.

First level business accounting is the cashbook. Higher level integrated packages offer anything from stock control and sales order processing to specialised reporting, e-commerce, multi-user, foreign currency and web based order entry and expense tracking.

According to Lindsay Dick of Sparks Erskine accountants, many businesses are oversold on what they actually need. “People must understand what they want to achieve from an accounting package. Essentials are GST calculation, reporting, budgeting and reconciliation, which most cash book accounting software offers – even freebies like Microsoft Money.”

“Integrated packages on the other hand offer more involved accounting such as accruals, and debtor and creditor merges. These packages are better suited to businesses with a dedicated accounts department or office manager. There have been occasions where clients who failed to get to grips with their new integrated accounting system, could have saved themselves considerable cost had they presented us with raw data instead.”

For the home-based and small service business operator, the most popular cashbook software in New Zealand are MYOB FirstAccounts, Quicken and Sage Instant Accounting. Prices range from $300 to $450.

The next level up are integrated packages that offer a varying collection of features for the small to medium enterprise. These include recommended packages such as MYOB Accounting, QuickBooks, Attaché Catapult and Sage Line 50 Account Plus, with prices from $789 upwards.

Prices rocket after that, and are aimed at the larger business requiring higher level features such as consolidations, Internet access and fully customisable capabilities.

It is worthwhile testing free trial versions of accounting software from the companies direct, or download them from the Internet, as you can try the software functionality first hand in relation to your own business. Also talk to other businesses about their experiences, and ask a business software consultant what packages they recommend.

Try not to base your decision solely on the initial investment because you may also be faced with additional training and support costs. The more complex the accounting package, the more training is involved. Also find out how well the software is supported locally.

Consider also what the limitations are, i.e. maximum number of customers and transactions. Whether the reports can be customised, and how much detail is given. Beware that some systems also slow down with large data exchange across the network.

If your business involves many transactions, choose a system that offers keyboard functionality as well as the mouse. Many packages are mouse dependent which can be slow and painful on the hand. Data entry is quicker and easier on a keyboard. If your business requires batch accounting consider software like Sage Instant Accounts or Attaché Catapult. The latter is also good for those replacing old mid-range DOS accounting software as it offers optional F1-F10 key functionality.

For those who want the added features, but don’t want to do the work, consider the other alternatives such as employing someone to do the book keeping once a week.

Whether you go for a free or an award winning solution make sure you’ve ticked off all the considerations. Here’s a few more tips to buying accounting software:

* List the pros and cons of those items you need and those you might need. Expect you may have to compromise.

* Look ahead at where your business will be in two years time.

* Consider all aspects of your business – your accounting package should help manage more than just the books.

* Make one person responsible for the implementation with full management support.

* Implementation always takes longer than expected, allow dedicated time for that.

* Invest in training – everyone becomes productive sooner.

Shelley Grell is the Director of high-tech PR agency Communicate IT Ltd. Contact her at shelley@communicateit.co.nz