Basic accounting software is often all a small business or a household needs. Let’s face it, powerful accounting software is often difficult to learn and hard to use. If you need a lot of accounting power, that’s a price you must pay. But there’s no reason to struggle with complex packages if you don’t need the power. Here are some things to consider.
Free might work for you.
Free software may be good enough. For example Microsoft offers free accounting software. Now true it’s quite limited, but it may be just what you need. Then you can upgrade later if you need more power. But be wary of no-name software that’s cheap. You sometimes get what you pay for or less.
The first step before choosing?
The best first step in choosing basic accounting software is deciding what you want to do. See the free software will mostly just let you track your transactions. A fully functioning system with integrated general ledger, accounts receivable, accounts payable and cash journals will probably cost you, but not much. Just make sure to think through what you need.
It’s in the box.
The major software houses like Microsoft, QuickBooks or Peachtree all offer powerful basic accounting packages. It’s shocking how little a full featured basic software package costs. You can choose a ready-to-go package that probably includes every feature that your small business needs. The huge advantage of choosing a product from one of these major companies is it’s sold in volume and proven by many users. That’s good for you.
Plus there’s support.
You’ll likely have questions. Who can you call? Maybe you have to purchase a support contract. Best find out up front since you will have questions. That’s another reason to choose brand name software. Those companies will be there when those questions arise. A cheapy, no-name package may leave you with a locked up system and no way out.
Upgrades when you grow?
Upgrades within the same brand are often easy. Switch brands to get more power and it’s start all over with the learning. Never doubt that learning a new system is a big part of the cost of an accounting system. You’ll pay for learning no matter what the software purchase price.
An easy accounting system is all many people need. Just spend a little time to decide what you need from an accounting system. Buy enough system to do the job. But more accounting system than you need will cost you extra not only in the initial cost. It’ll also cost you extra learning time. You don’t need that.
By: Al Bullington