Guide to Pricing and Costs of Accounting Software

Find the best business accounting software at the best price

By Lori Carver

Action Steps for Small Business Accounting Software Success
The best contacts and resources to help you get it done

Determine cost of small business accounting software on disk

Popular versions of accounting software come on a CD disk that you buy and install on your computer or workstation. These products may come with limited licenses so if you plan to use it on more than one computer find out if you need to buy more than one CD.

I recommend: Intuit Quickbooks lets you try before you buy with two trial offers. Try "Simple Start" and manage up to 20 customers free or take the free 30-day trial of the program. The Pro series edition starts at under $200 and the Premiere edition starts at under $400. Peachtree offers several accounting programs, ranging in price from under $70 to under $500, so choose the one that is right for your business.

Select accounting software applications located on the Internet

Many accounting programs use web based structure so you can access the program by accessing the website. Access the data from anywhere including when traveling or when at home. The price for this type of service is usually a monthly fee instead of a one-time charge.

I recommend: Nola Pro offers free web-based accounting software. This complete program contains all of the modules of paid for accounting programs and you may customize this program for your business. Less Accounting offers a web-based simplified accounting program with a free trial period. Paid subscriptions start at under $12 per month up to under $25 per month. This program provides basic features and is not complicated to use.

Find providers of accounting software with a customer support system in place

When your software is not working correctly call technical support for the answer to your issue. These programs may be more expensive to purchase but they are worth the price if you encounter an issue.

I recommend: DPRO offers accounting software starting at under $500. Technical support is available online and you can request training for this product. GNU Cash offers a free accounting software program and they do provide help via email. Ask your question and wait for your response.

Helpful advice for making the most of this Guide

• •  Compare accounting software systems before you buy. Some offer more features than you need and you should not pay for modules you will not use.

Guide to Small Business Accounting Software

Choose a financial program that fits your needs and your budget

By Frances Sharpe, freelance writer/editor

1. Can it scale or upgrade if my business grows?
2. Is it easy to learn and easy to use?
3. Does it have all the features I need?
4. Does it have features I don't need?
5. Will it run on my computer?
6. Will it work on an office network?
7. Does the vendor offer online and phone support?
8. Is the price right for my needs?

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

QuickBooks rules the roost in small business accounting software

The leading small business accounting software offers many products to fit your needs. Simple Start, its most basic version, is ideal for sole proprietors and tracks sales and expenses, prints checks, pays bills and prepares invoices. More powerful, yet still easy-to-use versions are geared for multi-users in growing small businesses. They work with Microsoft Office and offer additional features, such as managing payroll, forecasting, budgeting and tracking inventory. QuickBooks also offers industry-specific accounting systems for retailers, professional services, manufacturers, nonprofits, wholesalers/distributors, contractors and accountants.

I recommend: Take a quick interview at the QuickBooks Web site to determine which program is best for you or compare features.

Try Microsoft small business accounting software for familiarity

If you like the familiarity of Microsoft Office, its Small Business Accounting software may be a snap to learn. This comprehensive accounting software suite includes inventory management, sales order and purchase order processing, job tracking, banking and payroll. If you only need basic accounting help, this program may offer more than you need.

I recommend: Microsoft Small Business Accounting provides a comparison chart with other leading accounting software programs so you can decide which one fits your needs.

Try MYOB small business accounting software for Mac

MYOB offers three accounting systems for Mac users, two for Windows users. Its basic version handles simple accounting needs, including banking, sales, expenses and customer management. In its more sophisticated versions, you'll get a comprehensive accounting software suite with tools such as forecasting, budgeting, banking, sales and receivables, purchases and payables, time billing, payroll, inventory management, contact management, appointment scheduling, employee file management and even logo design.

I recommend: MYOB offers a free trial version of its software so you can give it a test drive.

Try Peachtree small business accounting software for an entry level solution

Choose from four options: a basic, standard, advanced or premium program. If you're in start-up mode, or you're just switching from manual accounting systems to business accounting software, try Peachtree First Accounting. This entry-level solution offers simple check writing, invoicing and accounts receivable. Look into its more souped-up versions if you need inventory management, payroll solutions, time billing, job costing or depreciation calculations for fixed assets. Check out industry-specific accounting software for construction, distribution, manufacturing, nonprofits and accountants.

I recommend: Peachtree offers demos and a side-by-side comparison of features to help you choose a suitable product, or click on "Right Choice for My Business?" under each product heading and answer a few questions to zero in on a program.

Try MultiLedger small business accounting software for a networked solution

A networkable accounting solution, CheckMark's MultiLedger allows up to 10 users to manage jobs, track cash flow, monitor accounts receivable and accounts payable, calculate commissions and manage inventory.

I recommend: Download a demo version MultiLedger of so you can test drive the features

Try Simply Accounting small business accounting software for a growing business

Designed for Microsoft Office users, Sage's Simply Accounting comes in a Basic version designed for smaller businesses and a Pro version for growing businesses. With Basic, a single user can write checks, track projects, manage inventory, handle payroll, track taxes and create budgets. The Pro version lets up to six users handle time and billing, departmental accounting and multiple price lists. It also lets you create orders, invoices and time slips using your Pocket PC.

I recommend: Sign up for a free trial of Simply Accounting, or check out the comparison chart to choose which version is right for you.

Consider online accounting systems

Instead of installing an accounting software solution onto a single PC or network; you can buy access to accounting solutions hosted online for a monthly fee. The upside is that you (or your accountant) can access your business's financial records using a Web browser; the downside is that you must have a live Web connection to work with your online accounting application.

I recommend: Check out Intacct Express, QuickBooks Online Edition, ePeachtree and NolaPro.

Helpful advice for making the most of this Guide

• •  If you're new to business accounting, consider a solution that also has books - as opposed to online help guides - available to step you through accounting software and the accounting process.
• •  As you evaluate small business accounting software packages, make sure that your industry-specific versions or add-ons are priced right for your needs, and that you buy the correct version - for example, 'basic,' 'pro' or 'enterprise.'
• •  If more than one person will use your accounting software from more than a single computer, make sure that your version will run on a network and/or is priced right for multiple licenses.
• •  Don't always choose based only a price. A solution that saves you $30 might cost you hours of time if it's harder to use or requires customization.

Guide to Accounting Software Basics

Find the right business accounting software for your company

By Lori Carver

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

Locate small business accounting software information

Before you buy your first piece of software, get the facts about accounting software. Discover the basics of accounting and use programs that fit your business needs.

I recommend: Blog Catalog offers information about accounting software including what it is, how to choose the best one for your business and the different types of software choices. Top Ten Reviews offers an informative article about accounting basics and what it is, what tools to use and what basic accounting terms mean.

Look for free online accounting software before you purchase a program

Choose free accounting programs to see how they fit with your business. You can also access trial versions of a software product before you buy it. If the product is too intricate, then move on to the next program until you find the best match.

I recommend: Spyfu offers a list of free accounting software programs. Try the free one and then decide which software works best for your business before you buy it. TSI and Duck Software offers a directory of free and shareware accounting software programs. Click on the link of the program that you are interested in for more information about that product.

Pick accounting systems from online directories that list all of the choices

Access online directories of accounting software programs so you can compare before you buy. Take advantage of any free trial period offered as well. Ask present users of the product you are considering how they like the product and if there are any considerations you should know before buying.

I recommend: Accounting Software 411 is a directory of software programs. Browse by industry, class or alphabetically. Find Accounting Software is a directory of software products that you can access by product name, developer name, industry, application or platform. Find the program you need with the aid of this directory.

Helpful advice for making the most of this Guide

• •  Compare prices and features of the accounting software system you plan to purchase. Make sure it will grow with your company.

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

Activity-based costing, or ABC

Activity-based costing, or ABC, is fundamental to most accounting software programs today. This method of costing was developed in the 1980s as an answer to the problems normally associated with traditional costing.

I recommend: Get a quick overview of activity-based costing at Jan Emblemsvag, which discusses the pros and cons of the method.

Job costing

When businesses want a breakdown of the time, expense and sometimes even profit margin associated with individual jobs or projects, they use a job-costing analysis in their accounting functions.

I recommend: Analytical Science Corporation explains how this function is performed by accounting software applications.

Asset management software

Asset management software allows you to take control of fixed income and equity sources, current and cash liquidity, and infrastructure and real estate assets.

I recommend: To understand how asset management accounting software works, check out Find Accounting Software.

Wholesale distribution business

Accounting software usually includes capabilities to manage the wholesale distribution business end of a company.

I recommend: Before you decide whether your accounting software should include these capabilities, find out what the wholesale distribution life cycle consists of by checking out Net Suite's handy graphic.

Inventory management

Accounting software usually offers companies inventory management capabilities. This helps companies purchase just enough to fill customer orders but not so much that they have to absorb higher costs.

I recommend: Go to AZ Inventory Management to find out how accounting software helps inventory management by controlling your assets while reducing operational costs.

Integration of payroll

When accounting software programs allow the integration of payroll they are assuming all the roles performed by your payroll clerks and payroll specialists.

I recommend: Everest Software offers a detailed explanation of the integration of payroll function it provides so that you'll know what to expect from any accounting software manufacturer.