Stock option software can save a company a lot of time and money on research and organization. With equity and stock option software, you can offer employees solid stock option programs and manage them with the ease of a user-friendly computer program. The software can manage stock option information, employee stock option accounts, and it is one of the best ways to organize information for internal and external audits.

The pricing and costs of equity and stock option software are determined by a variety of factors. Here are some of the major factors that determine price:

1. The flexibility you have to customize the stock option software to meet your company's needs.

2. Whether you have the ability to manage stock options at different vesting amounts and different stock types.

3. Where you can access the equity option software, either online or through a company network.

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

Choose free option software to keep costs low

Software for employee stock does not have to be complicated. In fact, there are many free online programs and tools that can help you manage the stock options of several employees. And since the tools and programs are free, there is no risk to try it.

I recommend: The Institute for Options Research provides free options tools you and your employees can use to determine worth, what to trade, and how to best manage investments. Ultimate Option Strategies recommends some of the top, award winning software programs available on the Internet.

Consider web-based stock option programs for convenience

If you have more than one employee running the company's stock option program, access should be a key feature in any program you choose. Many web-based programs allow for multiple users with individual user names and passwords. Web-based programs can cost $50 to $100 a year, or you can pay a monthly or quarterly subscription rate.

I recommend: Net Worth Strategies offers Stockopter Insight, a web-based program for those who manage stock options, in addition to a program for employees who invest in a stock option plan. Solium Capital is another web-based system that help administrators better manage the program at the company.

Explore stock option administration software with full features

If you want an easy time managing employee equity and stock options, consider software programs that offer comprehensive features. Some of the features available only through these packages include real-time updates, documentation for auditors and transaction statements for participating employees. While not all features will pertain solely to your business, they may come in handy in the future. Full feature programs cost $300 to $500 or more, depending on how many computers you want to equip with the software.

I recommend: Option-Aid from MindXpansion is a customizable program that lets you perform many tasks involved in managing and organizing equity and stock options. Data Informatics is a stock option program that provides you with all the features you need to best manage stock options.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before purchasing equity option software, make sure to contact the software provider and ask for a demo or free trial version to see if its the right fit for your needs.

For many small businesses, one of the best ways to be competitive with large corporations is to offer an employee stock option program. By doing so, you make your employees your partners, and this sense of ownership can help motivate them to help you grow your business. The historical problem with a stock option plan, though, has been in how to administrate. But there are now different options for software for employee stock management.

By utilizing equity and stock option software, you can ease a lot of the worries of your employee stock option plan as well as make your process much more transparent for any necessary outside auditing. The ability to take the headache out of your employee stock option plan will make your overall human resources and financial management pictures less messy and more headache-free.

When comparing pieces of employee stock option software, among the key points to consider are:

1. The ability of the equity option software to handle different vesting options;

2. The way the stock options software manages option grants;

3. The FAS 123R compliance of the options software.

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

Find option analysis software that will handle your employee vesting plans

Different employees will have their stock become vested at different rates. This is a simple fact of employee compensation structures. By finding software that is able to calculate when your employees vest, it will take a lot of the guesswork out of your stock option program management.

I recommend: Stock Informatics instantly updates calculations for employee vesting, depending on the information you input.

Ensure that the stock option administration software can handle how you grant options

Every company handles option grants differently. Yours may do so at hiring as part of a compensation package, after a certain time in service or even randomly as a production bonus. Regardless, it's important that the employee stock option software you use can handle your company's way of granting stock.

I recommend: OptionTrax handles a variety of option grant methods and even produces reports that can be delivered to your employees.

Use FAS 123R-compliant software for employee stock options

While you never want to consider it, an audit is always a possibility. By working with software that is in compliance with FAS 123R, you can ensure that your stock option program is ready for auditing before it happens.

I recommend: eProsper's CapMx is one of the few web-based stock option programs that is FAS 123R-compliant. Equity Methods' Option Navigator also ensures that your plan is in compliance with FAS 123R.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When choosing equity and stock option software, make sure that it's flexible for your future needs. Your stock option program can grow and change, and you don't want to have to buy new software when it does so.

Anyone working human resources may need to have equity and stock option software education and training. Equity and stock options are an important part of many business compensation programs, so knowing how to use your company's program is vital for keeping track of employee stock options. Many software companies offer training for employees, but there are other resources that allow training for stock option software.

It is also good to provide additional educational resources to employees that explain what type of stock options are available and how to manage them. You can train yourself and your employees on employee stock option software and stock option topics by utilizing many resources, including:

1. Training sessions provided by the software company.

2. Online tutorials that explain many functions in software for employee stock.

3. Books, videos, and online demos that can walk you through specific functions of the software.

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

Use training programs provided by the stock option administration software creators

The easiest way to learn about stock option software is to have an expert from the company come in and teach your employees. This is why many software companies that specialize in software for medium to large companies also offer training sessions.

I recommend: Solium offers employee training during the implementation process of the software into your systems. Equity Methods provides support and training for those who use their online services, accessible in its Customer Knowledge Center.

Choose online training options for web-based stock option programs

If your business does not have the budget to hire training professionals to come into the workplace or offer employees a seminar outside of work, there are many online resources available. Most online training resources are free and can help you with a variety of stock option software titles.

I recommend: Optionotrax offers free troubleshooting and assistance for using its web-based option tracking program. Trading Synergy provides an online manual plus 14 training videos for those who purchase IntrepidTrader stock option software.

Attend seminars to learn how to use option trading software

Another good way to teach employees about specific stock option software titles is to attend seminars held by software companies. These seminars will provide a walkthrough of the program, highlighting all the useful features as well as where users of the program can get additional support and troubleshooting.

I recommend: Real Options Valuation offers online tools as well as in-person seminars that can assist in learning how to use various stock option software programs. Montgomery Investment Technology provides seminars on general stock options topics, how to use its software, and also how to integrate other programs like Excel and FinTools into your work.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Online tutorials for stock options software can be another cost-effective way to help train employees. These tutorials can be found under customer support on many software websites.