How to Compare Accounting Software Packages
The accounting software package you select can have a significant impact on your business. Some packages are simple while others are complex, involving many users with varied access levels to data. No matter the size of your business, your accounting software should give you a means to record transactions and gain a better understanding of your business operations.
Other People Are Reading
Instructions
-
-
1
Assess your needs. Put together a committee consisting of members of various departments. You should have no more than seven members on your committee. Have each member analyze the needs of his department. Analyze how tasks are performed and create plans to show how efficiency can be increased with an improved accounting system. If you don't have the time or manpower to devote to this, you may want to hire an independent consultant to assess your business and provide an accounting software package recommendation.
-
2
Understand the types of accounting software packages. Entry-level accounting software is for smaller companies with $5 million in sales or less. Companies with sales of no more than $100 million and not more than 100 employees typically use small- to medium-business software. Small- to medium-enterprise accounting software packages are used by companies employing up to 500 people with sales as high as $500 million. Enterprise resource planning, or ERP, software is used by large companies with more than $500 million in sales and more than 500 employees.
-
-
3
Compare pricing. This is a somewhat difficult task because rarely will you be comparing apples to apples. Entry-level software may cost anywhere from $100 to $2,500. Large organizations may pay $250,000 and up for an accounting software package. Pricing shouldn't be your most important concern. Your primary concern is to make sure that the accounting software package meets the demands of your business.
-
4
Schedule on-site demonstrations. Vendors should be more than happy to allow you and other decision makers to test-drive the accounting software package. Discuss how the software can be implemented and integrated into your business. Ask the vendors about installation times and any system requirements for compatibility.
-
5
Review the legal ramifications. When making a large investment in an accounting software package, have your attorney go over the contracts to protect your best interest. Language should be stated in the contract regarding your recourse if the accounting software fails to work. Note the cost of maintenance and upgrades to your accounting software.
-
1
