The price for accounts payable programs varies depending on the size of your business, the features included on the software and the type of program you choose to use. Most AP software comes in two forms: out-of-the-box programs that require installation on your computer and web-based programs that a provider maintains.

When you compare the pricing and costs of accounts payable software, be sure you factor in any hidden costs that a provider might charge. Look for these examples of extra charges that will add to the pricing and costs of accounts payable software:

1. AP software with maintenance or upgrade fees

2. Online accounts payable software with networking charges

3. Accounts payable solutions with tech support charges

Action Steps
The best contacts and resources to help you get it done

Save money with an out-of-the-box accounts payable program

When you buy account payable software from a store, you typically buy an out-of-the-box system that can cost between $50 to $200 for the basic version. Once you have the program, you take it to your office and install it on your computer. With this type of system, you won't have to worry about hidden fees, upgrades or other costs, which makes this option the most budget-friendly one.

I recommend: Peachtree by Sage offers several systems including a complete accounting system with accounts payable processing features. It is one of the main providers for store-bought accounting software. Intuit, more commonly known as QuickBooks, is another industry leader that provides multiple versions of its AP software, including Mac-compatible versions.

Bump up the price margin to get more features for your accounts payable system

If a basic program doesn't have enough features for you, consider upgrading to a more expensive one. Out-of-the-box versions can cost from $200 to $500 for the more advanced series, usually denoted by the name of the version. If you are upgrading, the version might cost less, but when you add the initial purchase price, you'll probably be within the $200 to $500 range.

I recommend: Upgrade your version of Microsoft Office Accounting or purchase the Pro version for more features. Microsoft designed the AP software to work in conjunction with your other MS Office applications. View the various levels of Goldenseal Business Software available from Turtle Creek Software. The complete version costs more than $600.

Reduce upfront costs with online accounts payable software

With a web-based program, the providing company hosts all the software on its server, which means you don't need to use your own hard drive. Often these services cost less per year than buying out-of-the-box A/P software, but you have to pay the yearly rate for the duration of the time you use the company. If you use the service over a period of years, you may wind up paying more for the service in the long run than if you had purchased a program outright.

I recommend: TrackerSuite.Net offers web-based expense tracking and other accounting programs. The more features you add, the higher your monthly payment. Verian hosts its Invoice Manager on its server, but it also lets you download the system onto your computer if you feel more comfortable holding your own information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The cost of A/P software for medium- and large-sized business can easily exceed $500.

Accounts payable software — also called A/P software — can handle the needs of small, mid-sized and large businesses. In fact, the size of your business largely determines which accounts payable solutions are best suited to your needs. Small and home-based businesses might choose an out-of-the-box A/P software solution that integrates with Microsoft Office. Mid-sized businesses might consider hosted, accounts payable solutions that offer more features without taxing in-house resources.

Accounts payable solutions for larger enterprises are generally included as part of an ERP (enterprise resource planning) package. Whatever the size of your business, always look for A/P software and bill management solutions that are flexible and scalable for growth.

When shopping for accounts payable solutions, consider the following:

1. Entry-level A/P software.
2. Growing into more sophisticated accounts payable solutions.
3. Hosted accounts payable solutions.
4. A/P software as part of an ERP system.
5. Accounts payable solutions and bill management solutions for Macs.

Action Steps
The best contacts and resources to help you get it done

Entry-level accounts payable software

Many desktop A/P software and bill management solutions are ideal for small- and home-based businesses because they integrate so well with Microsoft Office.

I recommend: Small businesses that are converting from a manual to a computer-based financial system may want to check out Peachtree First Accounting 2008, which was designed for just that purpose. Intuit’s QuickBooks Bill Pay Service is a subscriber-based invoicing service for users of QuickBooks. Microsoft Office Accounting Express 2008 is an entry-level accounts payable software solution targeted to home-based businesses that integrate Microsoft Word, Excel and Outlook.

Growing into more sophisticated accounts payable solutions

Many accounts payable software vendors have a progressive series of packages that allow you to graduate to more sophisticated versions as your business grows.

I recommend: Users of Microsoft Express may choose to upgrade to Microsoft Office Accounting Professional 2008, which adds cash-flow forecasting, fixed asset manager and runs on SQL Server 2005. Peachtree has a progressive line of six accounting products that top out with Peachtree Quantum for companies with up to 200 employees. Check out Peachtree’s Tools to Help You Decide to find the right product for your business. 2020software.com allows you to compare features and prices of different accounts payable solutions as does Find Accounting Software.

Hosted accounts payable solutions

Hosted, web-based A/P software solutions spare businesses the trouble of running accounts payable software off their own servers while providing an off-site backup system.

I recommend: ExpenseWatch integrates T&E expense reporting with purchasing, budgeting and accounts payable invoice management. Nexus Systems’ PayablesNexus is a web-based purchase order and invoice management application that integrates with general ledger accounting systems. Khameleon’s project accounting software is a hosted project-based A/P software application.

Use an ERP system that includes accounts payable software

Larger companies need accounts payable solutions included in ERP systems that integrate the front and back offices, bringing together accounting, sales, marketing and other functions.

I recommend: Microsoft Dynamics GP 10.0 is a modular, integrated ERP solution that operates on Microsoft’s Web-based .Net platform. Sage Accpac ERP software is an accounting package that integrates with its modular line of end-to-end solutions, including business intelligence and reporting, customer relationship management (CRM), e-commerce, human resource management and more.

Accounts payable solutions for Mac

While PCs tend to rule in accounting departments, small, creative, design-intensive businesses may want accounts payable and bill management solutions for their Macs.

I recommend: MYOB’s FirstEdge for Mac and AccountEdge for Mac are progressive accounting packages that optimize small business accounting functions for Mac environments.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you engage in e-commerce, may sure your accounts payable software supports online transactions.
• •  When considering web-based A/P software solutions, ask how data is secured and customer privacy protected.
• •  Make sure your accounts payable solutions will be able to support your business's growth five years down the road.
• •  Accounting software add-ons that integrate additional functionality, such as bill management solutions, may tide you over until you're ready to upgrade to a more sophisticated solution.

An accounts payable program allows you to organize your accounts, track your expenditures and apply credits from vendors. You can manage payroll accounts, track invoices and allocate expenses to specific bank accounts.

Many providers of account payable software design the programs to work with businesses based on the size of the business and the amount of money the business spends. It is common for one provider to offer several options where each solution provides increased features.

1. Identify your accounting needs and determine which accounts payable solutions will fulfill those needs.

2. Take advantage of online demos and free trail offers for accounts payable programs.

3. Consider online accounts payable software rather than programs you have to load on your computer.

Action Steps
The best contacts and resources to help you get it done

Determine what your needs are and understand accounts payable software basics

Do you need an A/P software with all the bells and whistles, or do you need a simple version? You may not be able to identify your needs until you look at what a software program has to offer. If you're new to software, utilize research, reports and comparisons from companies that specialize in accounts payable systems.

I recommend: R*Kom offers Tips on Buying Software, which provides an overview of things you should consider before buying an AP software. Download the Top 10 Accounting Software report from Business-Software.com. Tippit offers a free comparison of the leading financial and accounting software on the market.

Take A/P software for a trial run before you commit

Free demos or trials allow you test how well a specific accounts payable software will work before you buy the product. Make sure you can actually run the demo or trial; some companies offer demos with slide-show presentations rather than the opportunity to test the software.

I recommend: Red Wing Software offers a free demo, or you can request a demonstration CD from the company. SpringCM offers a free demo and a trial for prospective clients.

Save hard-drive space with online accounts payable software

While many AP software solutions come in a box, or require installation on your computer, online AP solutions often allow you to use programs hosted by the provider. With this option, you save hard-drive space and you don't have to worry about upgrading your software; the company usually makes the upgrades. Keep in mind there may be hidden fees, additional charges or security problems from using an online program.

I recommend: NetSuite offers small- and mid-sized businesses web-based solutions for AP software. It also offers demos and a free trial. Anybill offers Internet-based, scalable accounts payable solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some accounts payable software providers have hidden fees such as maintenance fees, tech support charges, networking charges or form costs, so be sure to research the total price.
• •  Consider how long a company has been in business before you buy. If the company producing your accounts payable software tool goes out of business, you may not be able to find tech support if you encounter a problem.

Accounts payable software allows you to manage, monitor and control your accounts payable with computer interfaces that help you work more efficiently. Accounting software is available for any company that uses programs that handle all accounts payable needs. Some jargon used by accounts payable software companies can be confusing to those new to the software. Reviewing the meanings of accounts payable software key terms will help you find the appropriate software for your company’s needs.

Action Steps
The best contacts and resources to help you get it done

CRM, or customer relationship management

CRM, or customer relationship management, includes all aspects of customer service. An accounting software program with CRM provides an interface that allows your representative to view the customer's history and any notes regarding the customer's account.

I recommend: Find more information about CRM at Customer Think.

ERP, or enterprise resource planning

ERP, or enterprise resource planning, allows you to view and control various aspect of accounting over a variety of departments.

I recommend: Visit Sysoptima for more information about ERP. Learn even more from Web Media Brands.

Internal controls

Internal controls are software programs that provide a broader view of the accounts. They also protect against fraud. Internal controls allow you to view your information and protect it from getting in the wrong hands. Internal controls also offer a wide range of scans and checks to prevent errors.

I recommend: Kpo Web provides more information and details about internal controls. Read more at the University of Houston-Clear Lake.

Two-way integration

Two-way integration is a feature available with some accounting software. With two-way integration, you can import from and export to other programs on the system. This allows you to seamlessly transfer data.

I recommend: Advanogy offers more information about two-way integration. Find out more about how two-way integration works at rCash.

IFRS, or international financial reporting standards

IFRS stands for international financial reporting standards. IFRS is a set of guidelines and standards that most accountants and companies follow when it comes to their accounting. These standards are set by the International Accounting Standards Board (IASB).

I recommend: The American Institute of Certified Public Accountants has information about the IFRS available online. Graeme Pietersz also provides information about international financial reporting standards.

GAAP, or generally accepted accounting principles

GAAP stands for generally accepted accounting principles. These are commonly used accounting information recording techniques, principles and procedures. Many software companies make sure that their software is compliant with the GAAP.

I recommend: Learn more about GAAP at All Business. Street Authority also has information about generally accepted accounting principles.