How to Analyze Accounting Software

Fifty years ago bookkeeping and accounting tasks were done by hand with a team of accountants. All forms were on paper and computers were still as big as a small office. Now, technology is automating the processes which were once performed by human beings. This includes the bookkeeping and accounting function.

Instructions

1. Assess the reporting and analysis function. The better and more robust the reporting function, the more useful the software will be to you as reporting to both internal and external customers provides a great deal of value to any organization. Be sure that reporting functionality conforms to all regulatory bodies which govern your industry such as the Securities and Exchange commission, Sarbanes-Oxley Act or the Basel II Accord.

2. Test out the graphics. While this is connected to reporting, it is often a separate feature for most accounting programs. Illustrative formatting styles can greatly increase the value of your software, especially if you are responsible for the reporting function in your organization. Graphics also resonate with non-accounting managers better than numbers.

3. Compare integration capabilities. Determine which systems it can integrate (automatically work) with. Some software packages have a built in set-up tool for common financial software packages like Quickbooks or MS Excel.

4. Compare ease of customization. You do not want accounting software that requires a team of specialized consultants to make changes. Changes, updates and customizations should be easy to implement and seamless to the larger organization.

5. Make a final decision based on those features that are most important to you.

Tips & Warnings

• Request a free trial. Almost all reputable accounting software packages will allow you to test the software out prior to making a final purchase.

Resources

• Read this Article in Spanish