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There is a lot to account for when choosing a bookkeeping program
Sunday, November 08, 2009 | No comments posted.
Arlene Soto
There are hundreds of accounting systems available. Sure, they range from simple to complex, manual to computerized, and inexpensive to thousands of dollars, but don’t let it scare you. You can choose a good system for your business, if you ask some questions first.
• Who does the work?
Business owners may choose to maintain the books in-house personally, use a family member or friend, hire an employee to maintain the books or use an outside professional. Accounting professionals often maintain the books for small clients using an existing system. This can be expensive if you have a lot of transactions, but can save you money if you are not good at recordkeeping or taxes. In-house recordkeeping keeps the information at your business, but is not practical if you do not have the staff to maintain the recordkeeping in a timely manner.
• Is it easy?
Whatever system you choose, it should be easy to use, the information generated should be understandable and the feedback should be timely.
• How much should you pay?
Determining how much you can afford narrows the field of choices considerably. Manual systems cost less initially, but require more time to maintain and sometimes are not as accurate. Manual systems are not allowable if the company is a corporation.
To learn more about maintaining a manual accounting system, look into the simplified bookkeeping class offered by the Southwestern Oregon Community College Business Development Center. Off-the-shelf computerized software ranges from simple check registers to modular, integrated packages. These packages may be single user or multiple user. Generally these packages meet 75 percent to 90 percent of business needs. Customized computer packages meet the needs specifically set by the business owner, but they are usually the most expensive alternative. They can also be time consuming to create and maintain.
Choose the alternative which will meet the most important recordkeeping needs at the most cost effective price. Remember, price is not just the initial cost to buy the software, it also includes set up, maintenance, training and potential downtime. Try to find something which will not be outgrown immediately.
• Who can help?
Ask for recommendations from accounting professionals or go to http://www.findaccountingsoftware.com. Be wary of sales people who claim to have the perfect accounting system. Every accounting system has strengths and weaknesses.
The right accounting system will save time and money once it’s been implemented and tested. The wrong accounting system will cost more than the initial cash expenditure.
(Arlene M. Soto is the Director of the Southwestern Business Development Center. To ask a question call 541-756-6445, e-mail asoto@socc.edu, or write 2455 Maple Leaf, North Bend, OR 97459. at www.bizcenter.org.)
There are hundreds of accounting systems available. Sure, they range from simple to complex, manual to computerized, and inexpensive to thousands of dollars, but don’t let it scare you. You can choose a good system for your business, if you ask some questions first.
• Who does the work?
Business owners may choose to maintain the books in-house personally, use a family member or friend, hire an employee to maintain the books or use an outside professional. Accounting professionals often maintain the books for small clients using an existing system. This can be expensive if you have a lot of transactions, but can save you money if you are not good at recordkeeping or taxes. In-house recordkeeping keeps the information at your business, but is not practical if you do not have the staff to maintain the recordkeeping in a timely manner.
• Is it easy?
Whatever system you choose, it should be easy to use, the information generated should be understandable and the feedback should be timely.
• How much should you pay?
Determining how much you can afford narrows the field of choices considerably. Manual systems cost less initially, but require more time to maintain and sometimes are not as accurate. Manual systems are not allowable if the company is a corporation.
To learn more about maintaining a manual accounting system, look into the simplified bookkeeping class offered by the Southwestern Oregon Community College Business Development Center. Off-the-shelf computerized software ranges from simple check registers to modular, integrated packages. These packages may be single user or multiple user. Generally these packages meet 75 percent to 90 percent of business needs. Customized computer packages meet the needs specifically set by the business owner, but they are usually the most expensive alternative. They can also be time consuming to create and maintain.
Choose the alternative which will meet the most important recordkeeping needs at the most cost effective price. Remember, price is not just the initial cost to buy the software, it also includes set up, maintenance, training and potential downtime. Try to find something which will not be outgrown immediately.
• Who can help?
Ask for recommendations from accounting professionals or go to http://www.findaccountingsoftware.com. Be wary of sales people who claim to have the perfect accounting system. Every accounting system has strengths and weaknesses.
The right accounting system will save time and money once it’s been implemented and tested. The wrong accounting system will cost more than the initial cash expenditure.
(Arlene M. Soto is the Director of the Southwestern Business Development Center. To ask a question call 541-756-6445, e-mail asoto@socc.edu, or write 2455 Maple Leaf, North Bend, OR 97459. at www.bizcenter.org.)
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