The Long Partnership
Chartered Accountants and Chartered Tax Advisers
Choosing the right accounting package can be difficult, particularly as there are so many packages on the market. Not only that, but price and functionality vary so widely as to make objective comparisons very difficult without spending days on the task. We provide below some pointers on what you need to be thinking about. Please contact us if you require specific advice.
A decision is required as to what level of complexity is required.
At the most basic level, you need to decide whether you just want something to replace the cash-book, to handle receipts and payments, or perhaps a more sophisticated ledger-based system to produce quotes, VAT returns, and monthly accounts would be more appropriate.
You may decide that you need a highly sophisticated system which, as well as doing all of the above, can also handle stock control and job costing and which also integrates with a web site.
The next key decision is whether you want to run your accounting functions in house, or over the internet using a web-based provider. There are advantages and disadvantages either way. For example, an on-line solution will involve a recurring monthly fee for the service whereas an in house solution will involve a one-off purchase price and then annual licence and upgrade fees.
The growing business
Include in the decision the level of complexity that might be needed in the medium term.
Think about what the business might be doing, in say 12-18 months time:
Market sector
Your business may be in a specialist market sector for which there are tailor made systems already available. Talk to us as we have experience of your type of business. Talk to your trade association - they may already produce information to help you, and they may hold events and seminars on this issue.
Cost
Cost should not be a primary constraint, as you tend to get what you pay for. If you are only willing to spend, say £100, the system will be unlikely to meet all of your needs. This in turn may constrain the way the business trades, and subsequently turn out to be a hindrance to expansion. It may also mean that more expenditure and upheaval is required if you need to upgrade to a more expensive system in the future.
Some systems are available in modules. Examples of modules are a sales ledger module and an order processing module. If you are purchasing a modular system you won’t need to purchase every module at the outset. You will need the core ledgers to start with (sales, purchases and nominal/general ledgers) and you can then add any additional modules later. In this way the costs can be spread out over a period.
Training is vital for the staff that will be using the system on a day to day basis. Like the software itself, the cheaper the training then the less likely staff will benefit from it.
We may be able to provide training for you or help you find appropriate training.
A list of your detailed requirements would be useful when comparing packages. The following pointers need to be considered in the context of your business.
General points
Your specialist processing requirements
Here is a sample list – you will need to add your own special requirements:
Your information requirements
You need to determine what kind of management and user information is required from the system on an ad hoc or real-time basis.
A sample list is:
Other points
Having performed an objective review up until now, the final choice may be more subjective. It will probably be down to look and feel!
The timing of the implementation will depend to a large extent on how long is needed to enter the standing data (eg customer and supplier details) and opening balances.
Whilst the start of the financial year is logical, this may not be a particularly convenient time for the accounts staff.
You may wish to discuss the timing with us, as we can help in drawing up a list of opening transactions and the opening trial balance.
Other issues to think about at this stage are:
You may find it useful at this stage to refer to our factsheet on Data security.
We are here to help you with any of the steps involved in choosing and implementing an accounting package.
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For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
10.1 The jargon de-mystified
10.2 E mail/internet an acceptable use policy
10.3 Choosing an accounting package
10.4 Data security
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Chartered Accountants and Chartered Tax Advisers.
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