Going Independent: Adding Up the Pros and Cons ; COLIN EXLEY and JOHN WILLCOCK Test-Drive the Best Accounting Software

By Colin Exley and John Willcock | The Independent (London, England), May 27, 2002 | Go to article overview
Save to active project

Going Independent: Adding Up the Pros and Cons ; COLIN EXLEY and JOHN WILLCOCK Test-Drive the Best Accounting Software


Colin Exley and John Willcock, The Independent (London, England)


Less than a third of UK small to medium-sized enterprises (SMEs) use bookkeeping software. We tested four accounting packages specifically designed for SMEs. All four packages contained the following functions as standard: sales ledger, purchase ledger, cash book and nominal ledger.

What should it do?

Essentially the software that you will buy does the same thing as that used by much larger companies: it automates bookkeeping. Most accounting software is presented as modules, each performing a set of related accounting functions. As the complexity of the business increases, more modules are needed. The starting point for most packages are four basic elements:

1. Cash book - a record of all receipts and payments in cash and those going through your bank account.

2. Sales ledger - invoices issued to clients and amounts due from them.

3. Purchase ledger - invoices received from suppliers and amounts due to them.

4. Nominal ledger - brings everything together into the basic accounts from which the balance sheet and profit and loss are drawn up.

The whole point of the software is to produce clear, accurate reports of your business's performance. Ask to see examples of these reports and find out how easily the software handles their production.

Establish a clear idea of your needs. The first question is whether you really need any software at all. Write down your needs in the form of a checklist which can be used to compare features of different products. If you use an accountant already, see if they have any favourite software.

Do your transactions involve other currencies? How does the system handle this? The software reviewed is generic and should suit most types of business, but remember that specialist packages may have been developed for your industry, for instance hotels and guest houses, where accounting may be integrated with a reservation system.

Don't pick a system purely on the basis of price. If you can't get what you want from your software, it is money badly spent. Remember, once you have been using a particular system for a while it can be a complex exercise to switch to different software, so it is important to make the right choice at the beginning.

INTUIT: QUICKBOOKS

Overview

This package is designed for non-accountants and relies heavily on graphics to keep things simple. The cheapest version would suit a business with five to 10 people.

Price: pounds 129.99 including VAT

There is a more advanced "Professional" version costing pounds 249.99 that can be integrated with Microsoft Excel and lets you prepare sales orders and estimates. You can also buy a payroll service for pounds 89 a year.

A third, new package allows your accountant to access your accounts remotely without having to travel to your offices each time. This is called QuickBooks Premier Accountant and retails at pounds 399.95.

Comments

The package includes a credit card facility. This allows you to take credit card payments from customers at a cost of four per cent plus 30p per transaction. There is no set-up fee or regular charge and no minimum amount, which makes it attractive for small users compared to the high street banks' services.

Conclusion

An easy-to-use package from this innovative company.

MICROSOFT MONEY 2002: PERSONAL AND BUSINESS

Overview

Product also includes extensive personal financial management features.

Price: approximately pounds 70

Comments

This version of this software for controlling and recording personal finance and investments has been extended to enable the accounts of a small business to be maintained as well.

As with most recent Microsoft products there is a strong integration with Web services such as business news and information. Inevitably, these features link to Microsoft-owned Web services - hardly the only places on the internet.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Going Independent: Adding Up the Pros and Cons ; COLIN EXLEY and JOHN WILLCOCK Test-Drive the Best Accounting Software
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?