Your accounting department is one of, if not the, most important department in your business. However, since sales are not occurring there, many business owners are reluctant to invest in experienced bookkeepers and computer software that provide them with the financial data they should and need to be reviewing.
What does your accounting office look like? Well organized? Up to date? Papers filed away on a regular basis? Mail opened and answered timely? If your answer is no to any of these questions, decide now on a date these will be accomplished. Staying organized keeps you sane and frees up head space for better decision making and vision planning. Many companies hire temps to help out when things get too backlogged. Bringing in a family member or parttime student for a day or three could make a big difference and not cost as much as you think.
Now may be a good time to begin planting seeds for accounting software changes or upgrades. It may well take the rest of the year to decide whether you just want to upgrade your existing software or consider switching to new accounting software all together, and while you're at it, evaluate your data storage provisions.
Upgrading
Upgrading existing software may not be necessary every year. Although software companies produce upgrades each year, businesses are usually fine in purchasing
upgrades only once every two to three years. If your accounting department is running smoothly, don't sweat the upgrades unless you haven't done so in more than 3 years.
Accounting Software
If you're a new start-up, or your business has outgrown its existing accounting software, this list of the top ten accounting software programs on the market will help you see what's out there.
- Peachtree Complete $265.00
- MYOB Business Essentials Pro $300.00
- QuickBooks Pro $200.00
- Net Suite Small Business Accounting $1188.00
- Cougar Mountain $1500.00
- Small Business Manager $1175.00
- Simply Accounting Pro $300.00
- CYMA 14 Accounting $600.00
- DAC Easy $450.00
- Microsoft Money $80.00
When contemplating new accounting software, here are a few considerations:
- Intuitive and easy to navigate. Accounting software should provide common sense navigation, and easy to understand modules.
- Inclusive. Your software should include all aspects of business accounting. Checking, accounts receivable, accounts payable, employee payroll (if necessary), etc.
- Reporting. Look for software that allows a variety of reports from each accounting area. Customized reports are also important for getting a clear picture of cash flow and production costs.
- Support. Make sure your new software has great online as well as phone tech support.
Check web forums and costs of support before purchasing.
Data Storage and Backup
Small and mid-sized companies are facing increased demands on data storage as never before. Statistics show data growth patterns are doubling every two years. Increased government controls as well as graphic files and web based marketing have increased data storage demands as well. You don't need to be a computer wiz to realize the important necessity in safely guarding and storing the data you create and collect.
First establish a policy for long term data storage. One of the newest buzzwords in data backup and storage is ILM, Information Lifecycle Management. The principal behind ILM, according to Computerworld Magazine is “to set up a process for managing access to data that reflects the value of that data to an organization. The more valuable the data is, the more accessible it should be.” Also, don't be part of the "garage-shelf syndrome". “No matter how many shelves you put up, they're always going to end up full.” Pre-thinking your data storage needs will avoid both of these pitfalls.
Second, evaluate your staff, and if necessary, get the training you need to successfully master your data storage needs. IT personnel have difficulty at times staying abreast of changing IT landscapes. If necessary, hire a third party consultant to evaluate your options and get you going on the right track.
Third, project data storage needs for your business for the next four to five years. At the given rate of data growth, your company should plan on at least eight to ten times your current capacity. Target growth projections, and incorporate the additional storage in your estimates.
Fourth, choose the hardware and software to accommodate these storage needs.
Rely on experienced personnel or consultants to evaluate and recommend.
One solution that has seen a 40% growth this year are SANS, or storage area networks.
This type of data management has seen a huge decline in cost and is expected to net 72% of the external storage market in the coming year. Due to its increasing affordability, it has become the data storage method of choice, for many mid-sized companies.
Regardless of the size of your business, good accounting and data backup will provide the foundation you need for sound business decisions and worry-free stability and growth. Investments in these areas will return more than just peace of mind. Decisions based on accurate financial reporting, and money not spent retrieving information lost due to crashed servers or "Acts of God", can run in the thousands if not tens of thousands of dollars. Planning ahead and implementing sound business practices is one key to success.
