Buyers Guide: Small Business Accountancy Software - Page 2

If you handle e-commerce transactions, you will need to purchase specialist software. Microsoft and NetSuite both have their own e-commerce solutions.

Other suppliers work with software developers offering products for different programmes.

Stability and security are key issues and as your main point of contact will be the software reseller it is important to establish precisely how they work.

Temple stresses: “You should control software upgrades as opposed to letting the reseller have unlimited access to your network.

”Best practice is for the supplier to have access only to a test environment so that you can test the upgrade before applying it to your system even though this may be more expensive.”

It is advisable to involve your auditor or accountant in the selection process, as they can provide input about the type of system they think you need.

Presenting accounts in a compatible format can reduce accountancy fees.

Booth says: “It is helpful to have a system an external accountant is already familiar with and this could make the bills smaller. The accountant is likely to know the pitfalls.”

The major packages

There are a number of different ‘families’ of accounting software systems; each offering different packages from basic to sophisticated.

It is worth choosing the one you think will best fit your needs in the medium term, at least, because upgrading within a family is far easier than changing from one to another, in terms of data conversion, set-up (charts of accounts and reports and so on) and user training.

There are too many packages for us to describe them all here, however read on for descriptions of the main players:

ACCESS ACCOUNTING

Access has been around for a long time and has a substantial user base globally. Its database-driven packages use Windows, and range from one to 500 users.

Its entry level Foundations XP for up to three users costs £400, while Horizons, for 10 concurrent users, costs between £1,000 and £3,000.

Expect to install a Horizons system and be up and running within two to three weeks. Horizons offers management reporting, data analysis, multi-currency processing, security and control over the configuration of the system.

Dimensions Lite is an SQL server database option, costing £2,500 for five users. The Access systems can be upgraded adding more advanced versions based on a standard, intuitive user format.

“Software is now very affordable. There is no reason not to buy a SQL server database system and this is more important as statutory requirements mean that data has to be kept for six years. Dimensions Lite appeals to businesses looking for dynamic growth as they can move to the next level of product without data conversion,” says Access Accounting corporate projects manager Kevin Misselbrook.

NETSUITE

This is a pretty new web-based ASP solution – meaning the software runs on NetSuite hardware at its offices, and you simply access it over the web. Instead of buying it for a large lump sum up front, as with the other packages described here, you pay by the month.

It is suitable for single or multi-location offices with unlimited users. There is no specific hardware investment, though you will need a broadband connection. NetSuite Small Business costs £60 per month for the application, and £40 per user per month. There is also an installation fee of 50% of the annual licence fee.

“NetSuite is an inter-operable suite of software,” says NetSuite director of international products Craig Sullivan (above). “It is often difficult as a small business to really focus on the cash and what is happening in different systems.”