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| Small Business Accounts Packages from Colin Duguid MICM |
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The most important piece of equipment in many small businesses is the SHOE BOX! For at least a hundred years the shoe box has been utilised as a cash register, receipt holder, filing system and, of course, a timeless cash flow administration system that YOU believe is the preferred system of your accountant.
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To run all but the smallest of businesses you need immediate access to factual and up to date information. At the click of a button a maintained, but basic, accounts package can provide you with, for instance, year end accounts (known as a trial balance) and a precise report of your cash flow. Another extremely good benefit is showing your bank manager that you have control over your company and cash flow: this is a major help when seeking finance or an overdraft facility.
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There are a number of accounting packages that offer the small business owner a fighting chance of being able to maintain a meaningful computerised record of standard transactions, being: sales, purchases, cash flow, VAT, and for the really brave, basic stock control. Payroll is usually extra for all small business packages.
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When you choose an accounting package you must take, as a minimum, a medium to long-term view, that ensures the decisions you make today will compliment your business performance of tomorrow. For example, a software system that only works with businesses of less than 10 employees is OK today, but probably useless in two years time requiring a new software purchase, and a total re training of your staff.
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Consider the following points when buying ANY software:
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Analyse what you need from an accounting and payroll application: if you come to the conclusion that a shoebox is more than adequate, so be it!
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Assess who is best suited to maintain the system, and who will act as a back up to input information: get them involved in the initial training (its cheaper to train two than one).
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Buy software that will work on your computer: Windows, MAC or some other strange OS. Do you need your accounts package to work with, say, Microsoft Excel or Word?
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Consider telephone support, especially with end of year actions and reports, and, of course, government legislation on payroll: Sage will send you changes to payroll legislation on a floppy disk which does provide a comfort zone.
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Only buy software that is upgradeable, for instance: from no stock capability to full stock movement, from under 10 employees to 50 employees with personnel records, from one company accounts to group accounts capability.
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Find out from your own accountant which package they use: the idea being that you give your accountant a back up floppy disk of all your transactions which the accountant ‘easily’ converts into your yearly accounts (it should also cost you less for the accountants work).
- Consider the following after your purchase:
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Will you maintain your manual system in tandem with the new package for, say, the first 2 – 3 months?
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Consider hiring a local bookkeeper to come in once a week for a few hours to teach your staff (or you).
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If you put off updating the accounts package week after week you will wish you had maintained your shoebox system, but you wont even have that to rely on: stay committed and focused.
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Constantly check that your staff are fully conversant with the package: you will not know if your staff have problems until it is too late!
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If the trading figures shown by your new package look unbelievable, they are probably wrong!
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I have listed below the better known small business accounting packages and have given a short assessment of each. There are about 2-300 packages on the market, however, taking the above points into account you will probably find the package for you within the following list.
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MYOB www.myob.co.uk From £195
An up and coming software package firmly, and initially, aimed at the small business. MYOB Accounting is the extensive standard package at £195 with a 60-day free download trial offer. MYOB Accounting Plus which includes payroll is priced at £295, again with a free trial download. Their web site gives just enough information, however, since they offer a trial period you can see what the software has to offer in a real life environment.
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Pegasus www.pegasus.co.uk From £99
Pegasus Capital Lite has all the standard features and basic stock control. Payroll software is available (but no prices on their web site), with a downloadable trial version at 6.3mb (BIG) they are hardly going to set the world on fire with this package. From their web site I get the impression that small business is not really their target market, but they are big players in this market and their products are undoubtedly good.
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Sage www.sage.co.uk From £99
Sage are the leaders in ‘off the shelf’ business accounting systems and are the only supplier with a support infrastructure of any note. The basic package, Sage Instant Accounting, is £99: for a further £85 you can have the security of Sage Cover allowing you to talk to experienced Sage advisers all day for 12 months. Sage Payroll at £99 for 10 employees or less is a must. The web site gives you a good idea of what you will get for your money. Add sage Personnel for £100, and that brings a possible small business package to £383 plus vat: but what a package!
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TAS www.tassoftware.co.uk From £69
In the past two years TAS has probably made the biggest impact in the UK for a new accounting package, whether this is due to marketing or the product its self is unknown. Prices from £69 for the standard package to £127 for standard plus basic stock control gives TAS an advantage of £30 over all other products. TAS Payroll Manager is available for £97. Their web site has sufficient information for you to choose a product.
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All prices are net of VAT at September 2000
© ROK Associates Credit & Debt Management Limited 2000
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