The programs that include payroll features handle federal tax calculations for you. DacEasy Accounting & Payroll 95 has comprehensive payroll options. There are four earnings types (salary, hourly, overtime, and commission), and you can add others (say, bonuses and mileage) as well. Federal, state, and local tax tables are part of the program, and they can be updated when rates change. DacEasy Accounting & Payroll 95 also tracks sick days and vacation time. It lets you monitor how many hours have been taken and how many hours are still available.
QuickBooks Pro has many of the same payroll features found in the DacEasy software. The program's flexibility is impressive. For example, it lets you set commission percentages and distinguish between taxable and nontaxable earnings. And the program manual is one of the best for explaining how to set up your payroll. Using graphics of actual screens, detailed tables, and conversational text, it walks you through the process of creating a list of payroll items and the employee cards.
Great Plains sells Great Plains Payroll for Profit, an add-on to its basic accounting program. The price for both is in line with what you'd pay for the programs that are all of a piece. And once you install the add-on, Profit has pretty much the same payroll capabilities as DacEasy Accounting & Payroll 95 and QuickBooks Pro.
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Choosing a Program
You're starting out (or over). You've seen an accountant to help clarify the kind of accounting system you should install. But you don't have the funds or the need to hire an accountant to record your daily transactions. What's the right software for you?
Obviously there are programs out there that can handle all kinds of accounting tasks, from recording sales and expenses to tracking inventory and sick days. And you may be tempted to buy a program that has all the bells and whistles. But remember, there's a price for expanded capabilities. Extra features can compromise ease of use -- one of the biggest advantages of a low-end accounting program. Yes, to-do lists may be a big help for keeping track of sales calls and the timing of collection reminders. But do you want a to-do list to pop up every time you go to enter a bank deposit?
More features also mean more time learning a program. "I won't spend time and money to teach people about the features we don't need," you vow. "I'll just concentrate on those we do." But it's not that simple. Whatever a program can do is built into the software, and you have to understand all of a program's functions to know which ones you want to use. You may not need Profit's service and product invoices, but you do need to understand the differences between them to choose the right one for your business. That M.Y.O.B. Accounting offers "100+ financial and management reports" is great. Producing reports is one of the biggest benefits of automated accounting. But trudging through more than 100 of them to find the few that fit the needs of your business can be a waste of time.
So the first step in choosing an accounting program is to identify your needs. Consider more than just the accounting aspects of the programs; adopt a management point of view. Take a good look at how your business functions and decide which features you need to keep things running smoothly.
Second, consider the users' computer skills and eagerness to learn a new program. What kind of training are users going to need? Have they worked with an accounting program in the past? Do they like working with computers? At the very least, users should be part of the software decision.
Third, think about how you're going to use the program. If you're on a network, security is important. Peachtree's Windows programs are network-ready right out of the box and offer password protection at the module level. On the other hand, QuickBooks Pro doesn't even have a network version.
Fourth, be sure your hardware meets the software's system requirements. Accounting programs use a lot of hard-disk space -- anywhere from 3 MB to 38 MB -- and you're going to need plenty of room for your data as well.
Fifth, talk to people who have first-hand experience with the program you're considering, or look for people in your business and ask what they're using. But don't cross a program off your list because it didn't work well for someone else. Dig deeper. Find out exactly what the problem was. It may turn out that the difficulty wasn't with the program but with the training or the user or the planning that went into buying and installing the software. You can also call the software company directly and ask questions about your company's needs.
Once you purchase your software, the timing of the installation can make or break implementation. Check your calendar and last year's sales figures. Don't start to automate your books if you're about to enter, or are already in, your busy season. Other time constraints to pay attention to are the start of your fiscal year and your staff's vacation schedule.
Automating your accounting system is an investment of time and money. If you choose the wrong program, it can cost you. Try not to waste resources on features you won't use or on programs that don't meet your needs. Only the right accounting program can produce the information you need to make the right financial and managerial decisions.
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Ellen DePasquale (edepas@aol.com) is a consultant and writer specializing in personal and business finance.
WINDOWS-BASED ACCOUNTING PROGRAMS
ACTPlus Accounting
Cougar Mountain Software Inc., Boise, ID (800-388-3038, http://www.cougarmtn.com)
