Business Advice Daily

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by Matt Berkley

When it comes to business accounting software, there’s certainly no lack of options. The two programs at the head of the pack are, without a doubt, Peachtree and Quickbooks, the latter holding on to an approximate 85% market stranglehold.

See Accounting Software Checklist Below

What makes Quickbooks such a popular option? Primarily because the software is backed by Intuit, a large company that commits hefty sums on R&D and user support. Shawn Dolan, partner with Voellinger, Simpson, Dolan & Associates, PC, has been working with Quickbooks since 1998. And from what he’s seen, the software continues to get better. “It’s very user-friendly. Clients like it and the accounting professionals like it. The tutorials are very good as well as the customer service and technical support. And since most people in the accounting profession support Quickbooks, clients find that they can get any queries answered from a number of sources, either from Intuit or different accountants.”

“One of the biggest differences between Peachtree and Quickbooks is marketing,” states Phil Brumbaugh of Philip Brumbaugh CPA, CVA. “Peachtree is a little more accountant-oriented and less user-friendly than Quickbooks, which is more of a simple, open database. Quickbooks has done a tremendous job of marketing, and it has been designed over the years for non-accountants. It stays away from technical terms like ‘debit’ and ‘credit’ and the screens are built so that it’s relatively easy to find your way around.”

Again, other choices are there: Netsuite, Microsoft Solomon, Simply Accounting, Accpac, and AccountEdge are but a few. How can business owners sift through the pile and find a program that’s right for them? First, realize that there isn’t a one-size-fits-all program available. “The software really depends on your business. It should be based on that,” says Gavin Poppen, manager/CPA with Poppen & Associates, CPA’s, P.C. Other than the basic accounting system characteristics, anything specific-based on your business really depends on what you need.”

Jeff Gusdorf with Brown Smith Wallace agrees. When his firm sits down with a client, the goal is to identify all the critical business processes that differentiate how the company does business compared to its peers. Matching the software to those processes is the key. Gusdorf says you can cut to the chase—in terms of decision making—by focusing on four main features: functionality, vendor reputation, quality of the technology and price. These factors are weighed differently and tweaked depending on a client’s needs. “If you miss out on any of these,” he says, “you may not make the right decision for your business.”

When you’re talking about small business, the individual in charge of the books, in most cases, will be someone without accounting sophistication. Accordingly, says Kraig Spisak, CPA with Schmersahl, Treloar & Co., you should focus on software with high ease of use, ease of navigation, and ease of data entry. “Software should limit the mistakes. People need to be able to use and navigate the system easily and figure out where the various entries and invoices need to go.”

Poppen admits that Quickbooks is a good, functional program. But that’s not to say that the software doesn’t have its share of limitations. “It’s not as powerful as higher end programs. The accounting controls are weak. For your 5-10 person business it usually does quite well; but once you get to a level where you need more controllership, it’s time to get something else.”

When entrepreneurs first start out, programs like Peachtree, Quickbooks, Simply Accounting, etc., are attractively functional and cheap. These are people who can’t afford implementation services or consulting services, says Gusdorf. “Once you get beyond five users it’s a whole different ballgame. These programs are only designed to handle a moderate number of users and their performance just degrades as you add more.”

“Once you get beyond the do-it-yourself marketplace, it becomes a more complex decision and you have to be a little bit more sophisticated in your approach with buying software.” At this point, you have to consider who’s going to help you implement, configure and train your users on the software.

Gusdorf reiterates the importance of writing down your business processes in order to best match them with the proper software. If a person can’t make one for himself or herself, he advises enlisting the help of a qualified consultant. “The important thing with consultants is to find someone who is not selling software. That way, the consultant is not trying to steer you to a particular solution.”

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Accounting Software Checklist

Darlene Davis, president/owner of Davis Associates, CPA’s recommends starting out by making sure the accounting software meets the following criteria:

* The business should be able to cut its own check out of the software in order to save time.

* They need to be able to reconcile their bank statements directly within the software.

* For payroll, make sure this feature is included in the software along with the ability to complete quarterly payroll tax reports.

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