Selecting the right accounting software

Because some programs test for "greater than 00" or "less than 99," this validation may improperly reject amounts entered either as or In many cases, programmers avoided this problem entirely simply by using the "greater than or equal to" and "less than or equal to" expressions.

It's important to note that even if your accounting software package is Y2K-compliant, your computer may not be. The accounting software picks up the date from the operating system, and the operating system picks up the date from the computer's ROM BIOS—a basic program permanently stored in a chip. Many of those chips will not be able to tell the computer the correct date on January 1, The extent of the Y2K problem varies from PC brand to brand.

In some cases, although your computer may fail to properly calculate the new date on January 1, the problem can be corrected permanently simply by inputting the correct date. In other cases, your PC may require that you input the correct date each time you boot up. During the past year, Microsoft has identified, and in most cases corrected, minor Y2K problems in Windows 95, 98 and NT; it publishes a list of all the known problems in its product line at www.

To help you determine the extent of Y2K problems in your PC, search the Internet for utilities available for download; when you run those utilities, you will learn what steps you need to take to ensure your computer will provide the correct date at the turn of the year.

Even if your company's computer systems are completely Y2K-compliant, you still may fall victim to this bug. Every business depends on data from an intricate network of suppliers, distributors and consumers; Y2K problems may adversely affect any or every one of these organizations. As you evaluate and select an accounting software package, make Y2K compliance a leading consideration.

Another anticipated date problem relates to date confusion. However, outside the United States, this same date often is interpreted as April 3, Because no international standard has yet emerged, the potential exists for serious errors. The cost of a new accounting system has three primary components—software, hardware and consultant fees. It's important to understand how they affect the total cost of a system.

Another reason to upgrade hardware is because operating systems and technologies change frequently. Yesterday's equipment was not designed to run today's latest operating systems and applications. In fact, keeping old equipment is often more costly than just replacing it, especially after you consider how much you pay for system upgrades and a consultant's time tweaking the systems to work properly.

Keep in mind that hardware is the cheapest component of a new system. Finally, hardware keeps getting faster. The time savings alone typically pays back the hardware cost in a matter of months.

Over time, it gets expensive if an employee has to wait while an application launches, for screens to refresh, for data to post and for reports to print. Newer, faster hardware that crashes less frequently and causes fewer problems always results in time—and money—savings. For starters, the term installation engagement is misleading. The vast amount of time spent "implementing" a new accounting system actually is spent training employees to assemble the various accounting data, to enter that data and to close out each period and produce the month-end reports.

For this reason, it's far more accurate to describe them as training engagements. When installing a low-end accounting system, the seasoned consultant typically spends 40 to 60 hours on the job, most of the time training the client's staff.

On the other hand, the assignment might take as long as hours or more if the staff is weak in bookkeeping skills. For larger accounting systems, the task at hand really remains the same, except the volume of data to be assembled is larger and there are more people to train and more modules to be installed.

In the middle market, consultants usually charge fees equivalent to the cost of the software. Many seasoned consultants in larger cities charge fees at the rate of twice the cost of the software. At this level, added inefficiencies relate to deploying systems in multiple locations and to tying those systems together.

The consultant also must spend a lot of time granting user rights to appropriate servers, drives and folders and implementing the proper security measures to prevent unauthorized access to data. To aid in your search for the best software for your organization, check out the following resources:. However, in some cases, the accounting may be more robust than the operations or vice-versa.

New accounting software should also offer the opportunity to improve processes within the different user departments. Situations where the warehouse staff picks from paper orders and manually updates inventory counts, can be modernized and resolved to a smooth, digital process. A good solution allows for fewer human errors and more time saved. Another example would be where client credit card details are still being kept on a spreadsheet or within your software client list and not safely stored in a vaulted and tokenized payment processing system tied into your receivables.

Modern functionalities are essential, and so is process improvement. If you are considering a new accounting software, then the chances are that you may be experiencing the pain of outgrowing your current solution. Over time, your business will continue to grow, evolve and change. Even if you stay at a certain size, technology evolves, forcing businesses to consider new solutions. A scalable solution will grow with your company and keep up with technology.

Business growth can look different for different businesses. In a warehouse environment, we often see more inventory added or the need to move to a multi-warehouse model , which requires software with multi-location functionality. Hard drive failure is very common and you do not want to lose all your accounting information. Many accounting packages offer automatic backups or server storage for your data.

This is a good feature to take advantage of because they monitor and run backups frequently on their end so your data is never lost.

Speak with your Accountant Your accountant can give you valuable advice on Selecting the Right Accounting Software to use. They may know of compatibility issues when they import that data into their system.

They may also just have a preference on which is better. Locked into the Software Many small business owners fear they will be locked into their software for life once they pick it. This is not true. Many of the major software packages offer some type of conversion. Some things may not convert perfectly, but you will not need to re-enter all your financials. Tax Accountant said IRS delays start of tax season for individual returns would be postponed until February 17 with some as late as March.

If you are an organization that deals with large volumes of transactions, you need cloud-based accounting software to store your data. Cloud-based accounting software offers real-time access and flexibility to users through multiple devices.

People often tend to overlook this factor while choosing accounting software for their business. Unfortunately, this is a common mistake, as it is essential to evaluate your budget and select accounting software accordingly. No matter how feature-rich your chosen accounting software is, if it is not easy to use, then you have wasted your money. Accounting software designed with a user-friendly approach allows quick learning of features and functions.

Security is an essential factor while choosing your accounting software. Make sure that your accounting software has built-in security features to protect your data from unauthorized access. Integration with other software is an important aspect of accounting software. Accounting software integration with other business applications allows you to work seamlessly across departments of the organization as well as to other external entities.

This facilitates the easy exchange of information between departments and domains, resulting in faster execution and processing speed. Billing and invoicing are the most essential aspects of accounting software. When choosing an accounting solution for your business, it is crucial to evaluate the features of the billing and invoicing module provided by the accounting software.

Accounts receivables and accounts payables are two of the most essential aspects of accounting software.