Choosing Accounting Software
The different types of software include: Entry-level, Small to medium business (SMB), Small to medium enterprise (SME), Middle market (MM), Not for profit (NFP), and Enterprise resource planning (ERP). According to Johnston (2003), ???The two middle groups??”SMB and SME??”make up what??™s called the middle market . In addition, some products span the SMB and SME groups and they, too, are considered middle-market (MM) packages. Not-for-profit (NFP) organizations make up a separate final group. Identifying what group your firm fits into is very important in the software selection process for two reasons; ensuring the proper applications are in place to fulfill the business needs now and as the firm grows in the future, and, the time and capital expenditure on this project make it a long-term commitment that needs to be completed accurately the first time.
The names of some of the software programs available, along with the type of software are as follows: Entry-level ??“ Quickbooks Basic, Small to medium business- Quickbooks Enterprise Solutions, Small to medium enterprise- Microsoft Business Solutions Axapta, Enterprise resource planning- Oracle Financials.
Entry-level software is used by small local businesses such as carpenters, dry cleaners, single restaurants, and hair salons. This is companies with 20 employees or less with sales under $5 million. SMB is designed for companies of 100 employees or less with sales under $100 million. SME is designed for 500 employees or less with sales under $500 million. ERP sales should exceed $500 million and have more than 500 employees.
There are many choices available in the business accounting software market making the decision more complicated and tedious. Good research and strong communication between team members will help get better results when the final choice is made.