Software for small business finance is an essential organizational tool. Small business finance software gives companies an affordable way to create invoices, keep track of payments and organize finances with a single computer program. A company's human resources department can better manage company, employee and customer financial information. This is also a good tool for running discrepancies or audits.

Small business finance software providers offer many different features for a company's payroll and human resources departments, among other groups. Some programs are also customizable to your business or industry. Here are some features companies should look for when working with small business finance software:

1. Customization options that tailor the software to your needs.

2. Whether the small business finance software is compatible with other programs.

3. The security available to keep your information safe.

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

Choose a supplier of small business finance software that offers security features

Small businesses are just as susceptible to fraud and identity theft as individuals, so companies that use small business software should find out what the program can do to keep their information secure. Some security features ensure number accuracy during audits, tools that prevent data tampering, and features that can detect suspicious transactions.

I recommend: Peachtree software by Sage provides many security features for its small business software. Resources for Entrepreneurs has an article about the very real possibility of business identity theft, should your accounting software for small businesses be hacked. Small businesses that are concerned about security could also install a program like PC Security Tweaker, as reviewed by Bright Hub. This is an easy way to protect your finance software by adding an extra layer of security.

Explore finance software for small business that also provides marketing solutions

Working with small business finance software can be even more convenient and affordable when the program includes customer resources management (CRM) features and other marketing tools. Web-based small business finance software often includes CRM and marketing components that can help your organize customer information, order management and marketing campaigns. This provides an all-in-one financial management system for your company.

I recommend: NetSuite provides a web-based program for small business finances that includes tools for marketing online, traditional accounting functions, and customer management. Everest Software provides Everest Advanced, an all-in-one small business package for finance, CRM and eCommerce management.

Consider a customizable small business finance software program

Small biz finance software can come straight out of the box and work well for most small businesses. But if you own a growing small business and already have software tools in place, a customizable program may be the best choice. Some programs let you tailor as you go, while other companies offer customization services. Providers of small business finance software customization services often send a software rep to evaluate your company's needs.

I recommend: Intuit makes Quickbooks Pro 2009, a small business finance program with customizable features. The program can handle reporting for specific industries, data tracking and employee information. Or, you can start from scratch and license your own software by working with a company like Programs 101, which can design small business finance software. Small Business Resource provides articles and information on implementing small business software.

Providers of small business finance software are numerous. Some are simple freeware and others are highly complex systems for nearly all accounting needs. It is, therefore, important to purchase the small business financial software that fits your needs. Failure to thoroughly research your purchase may result in acquiring software that's too complex to use or too simple to process the legally required data.

Here are major categories to consider when shopping for software for small business finance:

1. Freeware is software that requires no payment and comes with complete functionality. This software usually provides only basic functionality.

2. Small business financial software options include applications similar to the ones used for home finances.

3. Small business finance software providers sell complex systems intended for major corporations. These are often customizable, usually by the vendor.

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

Use freeware providers of small business finance software

Freeware software is appropriate for small companies with one or only a handful of employees. Such software has the advantage of being free, but can be severely limited in capabilities. Choose with care; the work you enter may not be transferable to a more sophisticated application software for small business finance.

I recommend: AceMoney Lite provides a single account for small business finance and is freeware application software. Although it doesn't allow multiple accounts management, if your business is small enough, you may only require one account. Money Manager Ex, a user friendly small business finance software program, helps organize finances and tracks your money flow.

Buy Quicken or Microsoft, dominant professional small business finance software providers

Both Intuit and Microsoft want the middle market of small biz finance software. They provide software targeted to small and moderate sized companies. The packages provide tracking, billing and sophisticated reporting.

I recommend: QuickBooks, the granddaddy small business finance software tool, increases price based on the levels of sophistication. Microsoft Money, on the other hand, comes in only one version, Microsoft Money Plus Home & Business, and works well for small businesses.

Purchase top-level software for small business finance to handle complex business requirements

The top tier of small business finance software systems can cost hundreds of dollars per user. Often such software comes with considerable technical support, complex options and in-house customization services. Only purchase such software if your business requires equally complex financial tracking.

I recommend: Peachtree, a top financial software company, sells the Quantum package, which is a multi-user environment with many analysis tools and reports, plus access to customer support and product upgrades within 12 months of purchase. Oracle for Financial Services delivers comprehensive, pre-integrated business applications. The software comes in versions for companies in banking, insurance and capital markets.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Unless you have a compelling business requirement, it might be best to keep small business finance software data entry to one person. This assures a consistent style and minimal access to sensitive data.