| Accounting software is a business necessity, and | | | | Small Business: This varies from a few hundred to |
| because you can obtain simple, basic versions | | | | several thousand dollars, and typically includes all |
| free from multiple sources, there's no reason for | | | | basic book keeping functions plus multi-user |
| your company not to leverage it. Basically, | | | | capabilities, good help desk support, cash or |
| accounting software uses your computer to | | | | accrual accounting options, and many additional |
| handle all of the basic book keeping functions, | | | | business options. At this level a range of |
| including paying bills, creating invoices, and tracking | | | | worthwhile industry-specific programs are |
| cash in and out. | | | | available, and quite a few general programs include |
| Bigger or more complex companies will require | | | | optional add-on modules to handle warehousing, |
| more capabilities than are provided by the free | | | | inventory, jobs, CRM, or other specific functions. |
| programs, however, and there are many different | | | | Mid-Market: This level of accounting and ERP |
| packages on the market, with a wide range of | | | | software brings a much larger range of choices, |
| features and functions, including quite a few that | | | | with commensurately higher price tags. Typical |
| go far beyond mere book keeping, and offer fully | | | | prices can range anywhere from $5,000 to |
| integrated organization management and | | | | $500,000, depending on the number of users and |
| automation features. | | | | the range and complexity of features. Mid-market |
| A general overview of the available types of | | | | software should include a highly configurable and |
| accounting software and their functions: | | | | customizable solution that can be easily tailored to |
| Free: This book keeping software typically | | | | your needs, with built in or optional modules to |
| provides only basic functions, such as entering | | | | handle almost any business activity. |
| purchase invoices, paying bills, creating sales | | | | Large Business: Half a million dollars and up gets |
| invoices, entering cash receipts, bank account | | | | your large business accounting software solutions |
| reconciliation, and maybe some simple budgeting. | | | | that can range from simply mid-market packages |
| It's usually cash basis only, and often can | | | | scaled up to handle more users, to specifically |
| accommodate only one person at a time using it. | | | | tailored packages for large-scale multi-nationals. |
| Some free software packages are limited | | | | No matter what the size or type of your |
| versions of commercial software, others are true | | | | business, there are accounting packages that will |
| freeware. Help is often limited to non-existent. | | | | meet your needs. It is important to choose with |
| Entry-Level: Entry-level or micro business | | | | care, since this is a critical piece of infrastructure. |
| software typically costs under $100, and includes | | | | Your software should fit your requirements now, |
| comparable options to the free software, plus | | | | but you also need software that will grow with |
| usually much better technical assistance, and often | | | | you as you grow, and that will make it easy to |
| some additional features such as inventory | | | | migrate your accounting data if and when you |
| management, some CRM functions, basic project | | | | need to move to a more robust solution. You |
| tracking, and so on. Very small business software | | | | need a solution that fits your business processes |
| tailored to a specific industry is sometimes | | | | but won't straightjacket you if those processes |
| available, especially for industries such as real | | | | change. And most critically, you need to prioritize |
| estate or trucking that have well-defined and | | | | features and functions to get the best possible |
| consistent requirements, and a large volume of | | | | value for your dollar. |
| potential buyers. | | | | |