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Before choosing a small business accounting software program you will want to determine both your short-term and long-term needs. Every business owner likes to envision her business growing, so choosing a software program that will allow growth and flexibility should be a priority.
You will also want to consider how large of a customer database you anticipate needing. Are you a retailer or a wholesaler? Do you need individualized accounts for each customer or can you work with large generalized accounts that pool customers into certain categories (for example: Can you get by with accounts listed as "direct sales" and "online sales"?). Are all sales to be paid in full at the time of the transaction or will buyers pay later and require invoicing? If you are going to require invoicing, what types of terms do you wish to set up? Are you selling primarily through distribution (a third party) or are the majority of your sales direct?
Once you ask yourself these questions and get a comprehensive overview of where you are now, you will want to consider how likely it will be that your needs will change in the future to ensure that you will have the flexibility you may need. -
Today's accounting programs are many and range the gambit from general accounting and free to highly specialized and expensive. As a small business it is likely that if you choose wisely, you can get by with a free accounting program with the option to upgrade for your first several years in business. Just be certain to choose one that has the ability to seamlessly integrate your already posted records into the upgrade.
Here are a few of the most popular systems currently on the market:
Intuit QuickBooks Simple Start Free Edition 2009--This free version limits you to 20 customers in its database. Works with more if you are able to "pool" customers into categories. The system has invoicing and sales receipt capabilities and is fully upgradable (to allow 10,000+ customers) and promoted to retain pre-upgrade records seamlessly.
Free Accounting Software Version 2.0--versatile, upgradable and free. Details on user and customer limits are sketchy.
Peachtree Accounting Software 2010--Free Trial period of 60 days. System includes a complete package of invoicing, bill paying, budget management and sales forecasting. -
With the onset of free accounting software geared toward small businesses, making a decision has been vastly simplified and is virtually risk-free. Try any one that you think may fit your needs on a free trial basis. If at the end of the trial you're not satisfied, it's a simple matter to uninstall the program and download another until you find the one that best fits your needs.
In the interest of saving time and effort, it doesn't hurt to research options available and try to narrow your selections down to only one or two. A good comparison chart can be found at Software Media's Compare Accounting Programs page (http://www.softwaremedia.com/compare_accounting_programs.html). - Ultimately, your goal should be to obtain a program that makes accounting simple and easy for you as it pertains to your particular business. As fascinating as it may be to track your business' progress, accounting in and of itself doesn't add to your bottom line. You will want to get the accounting tasks out of the way as quickly as possible so you can get back to your real business of making money.
- Despite your best efforts at forecasting the future, you may find a time when you have outgrown your accounting software. You may in fact have outgrown "small business software" and are in need of a software program that can handle far more users simultaneously and more customers and inventory than the one you initially installed. At that point, it may be a wise investment to hire a software consultant who will analyze your needs and introduce you to the product best suited for the success you have achieved.
