CPA Practice Advisor

JUN 2015

Today's Technology for Tomorrow's Firm.

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SMALL BUSINESS ACCOUNTING SYSTEMS Reviews Small Businesses Continue To Drive America's Economy By Mary Girsch-Bock T wenty five years ago, small business owners were hard-pressed to f i n d a n a f f o r d a b l e accounting software p r o d u c t t h a t w a s designed for the small business owner that had litle to no accounting experience. When products such as QuickBooks and Peachtree Accounting (later Sage 50) were introduced into the market- place, they quickly became the go-to product for small business owners. How things have changed. Today, there are almost 28 million small businesses in the U.S. and over 22 million Americans are self-employed. In fact, small business has quite an impact on the U.S. economy, with more than 50 percent of the working population (120 million individuals) working in a small business. Another startling statistic is that on average approximately 543,000 new busi- nesses are started each month. With more people continuing to l eav e t h e w o r k f o rc e to b e c o m e entrepreneurs, the demand for easy- to-use, affordable small business accounting sofware has skyrocketed, with software developers working furiously to provide these business owners with easy-to-use solutions that won't break the bank – no accounting experience necessary. W hile there are traditional small business accounting products that have withstood the test of time, and the ever-evolving needs of the small business owner, many of the prod- ucts reviewed in this issue are aimed specifcally at the micro-businesses that ty pically have no additional e m p l o y e e s . T h e s e s y s t e m s a r e cloud-based, making them accessible f r o m m o b i l e d e v i c e s s u c h a s iPhones, Android smart phones, and tablets, as well as from laptops and desktop work- stations. These same prod- ucts typically ofer a variety of apps that integrate with the core product, with most of those apps free to use. For those looking for a more tradi- tional product to use on-premise, those products are still available, with sofware companies upping the ante by adding perk s such as mobi le accessibility, and cloud-subscription options in order to compete with these newer products. Te result is a win- win for the small business owner, and the accountants that manage the books for those small business owners. D u r i n g o u r 2 0 1 5 r e v i e w s o f accounting systems for small busi- nesses, we looked at several key areas, which include the following: Basic System Functions – This includes installation ease of an on- premise product, general product navigation, as well as the availability of industry specifc templates or fea- tures such as sales and point-of-sale functionality. Also, we looked at what platforms the product will run on. Core Accounting Capabilities – Tis area looked at GL, AP, and AR capability within the product. We also looked at sales tax tracking and man- agement, as well as payroll features. We also look at whether the product will accept multi-currency, and if it has multi-language capabilities, as well as an option for multiple users. Day-to-Day Operations – This area took a look at the sales and point-of-sale functionality mentioned earlier, plus shipping integration as well. Customer, vendor, and employee management is looked at as well as both inventory and purchasing capa- bility. We also looked at available e-features and if the product offers remote access, i f an on-premi se product. Management Features – Tis area includes the availability of dashboards and overviews, as well as reporting options available. We also looked at security options, including what level of system security is available. Integration/Import/Export – Tis area is of particular importance to those using third party applications. Can data be imported or exported easily, and do all modules and apps easily integrate with the core product. Another important area is the avail- ability for accountants to access the system and/or transfer data. Help/Support – Tis area includes the availability of support and help functions within the product, as well as tools for getting started such as system wizards or getting started guides. We also looked at the avail- ability of system updates, and how easy it was to access those updates. Website support and available docu- mentation was looked at, as well as support options and if the support was U.S. based. While system afordability can also play a role in the decision making process, with many of these products ofered free or at reduced cost to micro-businesses, the decision really boils down to what func- tions and features do your clients need to run their business? Tis review should help answer that question. ● REVIEW SECTIONS BASIC SYSTEM FUNCTION • Installation Ease • General Navigation & Ease of Use • Industry Specifc Templates • Industry-Specifc Features • Platform support CORE ACCOUNTING CAPABILITIES • GL/AP/AR functionality • Sales Tax Functionality • Payroll functionality • Audit Trail • Multi-Currency (Extra Credit) • Multiple Language Support (Extra Credit) • Multi-Location Support (Extra Credit) • Multiple Users DAY-TO-DAY OPERATIONS • Sales/Point of Sale/Shipping • Customer/Vendor Employee Management • Inventory/Purchasing • e-Features • Remote access MANAGEMENT FEATURES • Dashboard Overviews • Reporting • Security Features INTEGRATION/IMPORT/ EXPORT • Data Transfer • External Integration • Online Accountant Transfer Tool (Extra Credit) HELP/SUPPORT • Built-In Support Features • System Updates • Support Website/Documentation • U.S.– based support Mary Girsch-Bock Mary Girsch-Bock began her career as an accountant in the property management and healthcare industries. She is now a feelance writer specializing in busi- ness and technology issues and is the author of her frst book, several HR handbooks, training manuals, and other in-house publications. She can be reached at mary.girschbock@ cpapracticeadvisor.com . 14 June/July 2015 • www.CPAPracticeAdvisor.com

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