Mid-Range Accounting Review - 2005

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From the September 2005 Issue

A lot of small businesses fail. While not always the only culprit, poor financial management is more often than not a contributing factor. For those who succeed, however, there are often growing pains associated with their success: Their business may have expanded in areas they had not expected, resulting in a new niche market; their inventory needs may have grown complex; the business may need extra support for its manufacturing processes; they may need many more concurrent users accessing their accounting and business management systems.

Many factors can cause a small business to outgrow the basic business accounting software that they may have started with, but aiding them in finding a solution that streamlines their business processes and provides them with the financial capabilities their newfound growth requires is essential to maintaining their continued potential.

Mid-range accounting software products range from core module systems that provide more advanced accounting strength than off-the-shelf programs, to products that are essentially Enterprise Resource Planning (ERP) systems for these entities, providing integrated management of each component of their business cycle: commission or retail sales, inventory, payroll, manufacturing, customer relationship management, communications and, yes, true double-entry accounting functions with an audit trail.

This review of mid-range accounting products takes a look at systems available to these businesses, from online hosted applications that require no IT setup to traditional programs, and one that even offers a choice between the two. Some of the programs are sold by module; a few are offered as all-inclusive packages. We have tried to provide single-user and five-user pricing for each of the products reviewed, based upon a system that includes at least the core financial components of GL, AP and AR, inventory management and reporting capabilities. The products have been rated on key issues and areas of functionality that business management and their accountants should address when moving up to such a system.

Ease of Use/Transaction Entry. Moving to a new accounting system will take some effort, but the intuitive design and workflow structure of a program can greatly reduce time lost to training and growing accustomed to a new system. Also a key factor in the usability of a program is the user’s ability to customize it to their needs, so this has also been addressed.

Notable Features. While it would be impossible to list all of the features offered by each program reviewed here, this section points out particularly impressive or noteworthy capabilities of each of the systems, such as calendaring functions or reminders, along with information on security features.

Integration/Import/Export. All of these systems provide multiple modules that offer some form of integration, but the manner in which they do so can affect data transfer. Programs sharing a singular database and providing real-time processing can be advantageous to those that hold off on changes for batch processing. Additionally, the ability to share data with other programs can greatly enhance the productivity of a firm by reducing re-entry of data.

Reporting. Obviously a key aspect of a financial system, reporting tools can do more than provide historical data in the form of financial statements; they can also help financial professionals plan for the future. The inclusion of report writers and other customization options also allows more personalization of reports, invoices and other documents.