Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/696186
18 June 2016 • www.CPAPracticeAdvisor.com SMB ACCOUNTING SYSTEMS Reviews Small Business Accounting Systems By Mary Girsch-Bock W hile the sole proprietor or small business owner may not realize their impact on the U.S. economy, the SBA reports that small busi- nesses account for 55 percent of all jobs in the U.S. Since 1982, the number of small businesses has risen 49 percent, according to the SBA, with no signs of slowing down. While some of these small businesses will never grow past the sole proprietor stage, if the business owners' intentions is to grow their businesses successfully, they need to be using accounting sofware. No longer a cumbersome, expensive investment, modern accounting sofware is designed to appeal to the entrepreneur who has litle time to spare on simply running a business and would rather focus on grow- ing that business. In fact, the systems today bear litle resemblance to the bloated, complicated products of ten to twenty years ago, systems that ofen required an IT staf to install and maintain, plus a complicated array of hardware to support it. With so many products now available via the cloud, small business owners need only have a fairly modern computer or tablet, and access to the Internet. Likewise, small business accounting systems that are still available as installed-programs also ofer much more streamlined structures, advanced workfow features, and easy prod- uct installation and setup. Here are just a few advantages to using the right accounting sofware: • Real time access to business and fnancial data is available at any time • Reduced error incidence versus using spreadsheets or other manual accounting methods • An increased number of add-on modules and applica- tions that are available to run just about any business more efciently • Beter tracking of both payroll and sales tax Clearly, the benefts of using accounting sofware far outweigh the downsides. Vendors have stepped up their game, hoping to atract some of the SBA's 28 million small businesses operating in the U.S. But increased vendor competition can have advantages and disadvantages to the small business owner, particularly when presented with so many more options than were available only a few short years ago. Te reviews in this issue are truly aimed at the small business owner – those with between 1 and 100 employees. And while the solutions may vary tremendously, the fact remains that businesses have many more options today when it comes to accounting sofware. Te review is divided into two sections: On-Premise products and Cloud-Based products. While some small business owners prefer a product that is installed on their desktop or server, others are looking for acces- sibility – whether that be from laptops, tablets, iPhones, or Android devices. Entrepreneurs and their accountants can both agree that the choices are beter than ever – but making that choice can be difcult. We looked at the same features and functionality in both on-premise, and cloud computing products, which includes the following areas: Basic System Functions – this area includes system installation (if needed), product intuitiveness, the avail- ability of industry specifc solutions, as well as what platform(s) the product was designed for. Core Accounting Capabilities – Te heart of the product, we looked at GL, AP, and AR functionality within the product. Other key areas such as sales tax tracking, payroll, and employee management capability were assessed as well. Finally, we looked at multi-currency capability, multi-language capability, and whether the product could be accessed by multiple users. Day-to-Day Operations – Tis area assessed the availability of both sales and point-of-sale functional- ity within the product. For those with online or mail-order businesses, we also looked at shipping integration options. Customer, vendor, and employee tracking capability were examined, as well as inventory management and purchasing capability. Any e-features such as electronic payments or electronic banking were examined, as well as remote access capability. Management Features – We examined the avail- ability of management and analytic features such as dashboards, business overviews, and other tools designed to assess the health of a small business. Reporting capabilities were also looked at, as were 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 business 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 . BASIC SYSTEM FUNCTIONS CORE ACCOUNTING CAPABILITIES DAY-TO-DAY OPERATIONS MANAGEMENT FEATURES INTEGRATION/ IMPORT/EXPORT HELP/ SUPPORT OVERALL RATING AccountantsWorld Accounting Power AccountingSuite FreshBooks Intuit QuickBooks Online Sage One Xero Online Accounting BASIC SYSTEM FUNCTIONS CORE ACCOUNTING CAPABILITIES DAY-TO-DAY OPERATIONS MANAGEMENT FEATURES INTEGRATION/ IMPORT/EXPORT HELP/ SUPPORT OVERALL RATING A-Systems Visual Bookkeeper Acclivity AccountEdge Pro Cougar Mountain Denali Red Wing Software CenterPoint Accounting CLOUD ACCOUNTING SYSTEMS INSTALLED SMB ACCOUNTING SYSTEMS