Accounting software is clearly an important part of your business. If you have ever searched for an accounting software product and a company to work with, you have probably noticed that there are so many accounting software companies available. Do you choose a basic, mass-marketed product like Intuit’s QuickBooks? Maybe you will opt for a large-scale customizable product like Sage MAS 200? Or maybe your business is a perfect fit for mid-market accounting software such as Red Wing Software’s CenterPoint Accounting. The process of narrowing down your search to a few vendors can be grueling if you don’t have the right tools. Answer these questions to help you decide which type of vendor and product is right for your business.

Who am I comfortable working with?

There are so many accounting software companies. Some are very large, with their support call centers in several countries, and you likely won’t speak with the same person twice. Others are smaller, with fewer technicians, where you get to know their technicians and they get to know you. Both systems have their own set of benefits. A larger company may be available longer hours or even 24/7, while the smaller companies may have a more limited support schedule. Consider which type of service you want for your business.

How customizable is the product for your business?

In the accounting software world, there are really two kinds of ‘customizable’. The first is open source code, where the actual code of the software can be altered in nearly any way. Changing source code can get expensive, and you might have problems finding support if your programmer is unavailable. On the other hand, having open source code can provide precision features to be created to fit your business processes exactly the way you want. The other type of customization involves the changing of features within the software to fit your own needs. Many businesses can fit their processes very well by simply editing features within the accounting software to meet their needs. A system like this does cost far less than an open source system as it is likely less expensive to support and keep up. Ask your potential vendor if they provide open source code, or customizable features, as this can make a big difference in cost and processes.

Do the training options fit my needs?

Some people prefer to learn about their new accounting software at their own pace, others would rather attend a live training session, and still others simply use the online help within the system. Each software company offers their own set of training options, so it’s important you find a company who offers training in a manner that fits your company best.

Consider these questions early on in your search for accounting software companies, and you will have a much easier time weeding out the companies that are not a good fit for your company, and focusing on the ones that work best for you.

No matter the size of your business, accounting software must be an integral part in managing your finances. Of course, the range of software packages available these days is vast, and you have to strike a balance between something that can handle your needs while being as easy to use as possible. But, regardless of which accounting software you choose, keep in mind that all packages should allow you to get the information you need without a hassle. What good is a system that only allows you to pull out information on reports and other documents, with only the data they deem valuable? Consider these tips for obtaining the information you need, the way you want to see it.

Customizable Reports: While many accounting systems do include a variety of standard reports, they are typically very general to satisfy the needs of the masses. What happens if you want to include an additional field? Or how about if you would rather have two columns of information switched around? It’s best to be able to view what you and your management team wants to see on financial statements. Look for a system that allows you to take one of their standard reports and add, remove, or move fields of information as you like to see it. Then, save your revised report so you can run it exactly the same from month to month, giving all those who view the reports a consistent view of the crucial financial information. Financial information is simply too important to leave the data you pull out up to the discretion of the general reports in your system.

Drill Down to Original Source Entries: When using the reporting within your accounting system, using drill down to original source entries can be an extremely useful tool. When you are in a report, you may have a question about what makes up a number or how that figure was calculated. Drilling down to the original source eliminates the step of having to go into a full edit function or run another report. This helps keep your information accurate while also letting you make edits more quickly and efficiently.

Departmental Reporting: Do you often throw or stuff your personal cash into your wallet or purse helter skelter? No, you likely fold up your dollar bills and perhaps even organize them by dollar amount. If you had to search for and unravel scrunched up dollar bills each time you wanted to buy something, it would take a long time and frankly that would be embarrassing. This is similar to organizing your transactions in your accounting software. Setting up and tracking information by department helps you understand financial information about each of your departments, so you have a more solid idea about each department’s success and where improvement may be needed. Instead of viewing all of your financial information together, it can be broken up and more easily understood.

When you are able to pull the information out of your software with ease, you can spend less time analyzing and more time improving and carrying onward. Use the analysis tools within your software to help you get the information you need, in the way you need to see it.

Follow this link to see AgWeb's post about how to bulletproof your balance sheet.

http://www.agweb.com/article/bulletproof_your_balance_sheet/

By Adam Bluemner of www.FindAccountingSoftware.com

Adam Bluemner is the Project Specialist Manager with FindAccountingSoftware.com, a company specializing in helping businesses find the right software for their needs. In his free time, Adam avidly follows his favorite Wisconsin sports teams and is working on convincing his daughters to do the same.

One of the most common questions you may face when considering a software change is whether or not you should replace your entire accounting system. Should you purchase a new, full software system? Or should you instead extend the functionality of the current system with an add-on program? The answer of course depends on your needs and your unique scenario. Understanding a bit more about the topic of software integration, though, can help you make the decision.

The word integration is often used as if it refers to one exact thing. The reality is that there are many degrees of integration. At the most basic level, one of the most important aspects to consider is whether integration will be "real-time" or not. As opposed to real-time integration, batch integration, on the other hand, allows the export of normalized data from another module, but it is only done periodically. There are obvious limitations to batch integration. Depending on your needs, these limitations may be prohibitive.

Consider the case of a company who sells both directly and through an ecommerce portal. Imagine the two sales channels process transactions with different software and the updates to inventory counts are done in batches. The problem that may arise is that inventory that has already been committed to one customer may end up being resold. This is a stark example. But it does demonstrate a major challenge when integrating add-on software--namely, keeping data synchronized and up-to-date.

There are a number of key questions you'll want to ask providers when considering integrating a third party add-on:

1. What is the underlying database for the add-on software? (Does it match that of the core system?)
2. Is real-time integration possible?
3. If integrating in real-time, how does the software solve issues like managing concurrent updates to common data from the two systems?
4. Has your company handled this specific integration before? (And, how has it turned out?)

One of the reasons you may be investigating extending functionality with an add-on program is price. Certainly, one major advantage of purchasing a 3rd party add-on is that it will be a fraction of the upfront capital expenditure of a full new system. However, there is more to the price equation to consider. Normal software version updates to one or both of the integrated systems may necessitate updating the integration as well. This can introduce ongoing costs. Often to avoid these costs, companies will stick with a certain software version. There are costs to this as well. Aside from missing out on the introduction of beneficial features, it may prevent access to important bug fixes and security patches.

The advantage of purchasing a complete accounting system when it comes to the integration issue is a bit clearer. With a complete system, you are working with a set of modules inherently designed to work together. Modules can easily share access to common database tables, permissions can be managed centrally, and there is consistency in the GUI (general user interface) making it easier for employees to learn and use the software.

While purchasing a full, new accounting system may be more expensive upfront, often when the complete costs and benefits are evaluated, it is the better value in terms of ROI. Whether or not this is the case for you will of course depend. Understanding and exploring the different aspects of potentially integrating software should help to give you a better basis to make the decision.

At the start of the year, you have a brand new chance to improve the financial status of your business. Taking some simple steps now can make a big difference in improving your business throughout the year. Follow these steps to start your accounting year right!

Back Up Your Data

How often do you back up your data? You really should back up your data on a regular basis, and then check to be sure the backup was successful. The New Year is a great time to start implementing this process and making it part of your ongoing procedures.

Make Adjusting Entries

Make adjusting entries to balance inventory and payroll liabilities. Check all accounts payable and accounts receivable reports to be sure the amounts are accurate. Also, write off any bad debts.

Reconcile Bank and Loan Accounts

Reconcile all cash, loans, credit lines and credit card accounts with their statements. Compare the reconciliation reports to your balance sheet to be sure the amounts match and to ensure you have an accurate balance sheet. By not reconciling, you could end up with a payment due that you had not planned for.

Print Year-end Financial Statements

Print the year-end financial statements including an income statement, balance sheet and a general ledger report.

Review Customer Aging Report

Review your Customer aging report; check to see if any balances need to be written off or turned into collections. Also, refund old overpayments and deposits.

Take Fixed Asset Inventory

Verify that the fixed assets on your books are what you still have and vice versa. This is a step that most businesses forget to take, and once they do, they find out there are things on the books they haven’t had for years.

Verify Coordinating Sub-ledger Accounts

Verify that your inventory, accounts payable and accounts receivable balances match your coordinating sub-ledger. For example, be sure the balance on the accounts payable account in General Ledger matches the balance on the accounts payable aging report.

Create a New Budget

A new budget should be created well before the New Year starts. However, the start of the year is a good time to begin actually following the budget. Start the year right by making it a habit of paying attention to your budget and where your business stands. You are more apt to make money if you have goals/plans in place, which can all be planned out and recorded in your budget.

Create an Actionable Customer List

Create a list of customers who did NOT purchase from you in 2011, and put an action plan in place to get those customers BACK.