Choosing Bookkeeping Software

Bookkeeping is one area where office automation has made a whole range of positive differences. Automation has taken the practice from purely manual to systems that are almost completely automated. Of course some bookkeeping systems still need some form of manual intervention or input in order to operate properly.

Almost every business at some level relies on some type of software program to keep track of transactions. Some of these programs are completely integrated with other programs making the whole process not only a hands-off one but extremely efficient. For example, when a sale is generated, an invoice can be automatically created which in turn can create a receivable, and so on, without any manual input.

One of the great benefits of automation in the bookkeeping service is the capacity for data manipulation to create different business scenarios or to do decision support. In a manual system, these would hardly be possible without hours upon hours of manual work.


With that being said, any bookkeeping software must be able to fulfill some basic business requirements such as being able to keep accurate and complete records; have audit checks to ensure data integrity and reliability; system controls that can prevent unauthorized changes to data; and the capacity to grow with your business needs.

Some considerations to make when purchasing any bookkeeping software are:
- Is the software compatible with your current computer system?
- Do you require it to integrate with any other system you are running for your business?
- What are your core bookkeeping requirements? Make sure these are covered by the system.
- What level of support will you receive in terms of setting up, training, and general maintenance?
- For what period will system updates be offered free? Some software companies will over upgrades for a given number of new versions or over a period of time.
- How reputable and established is the vendor or developer of the software? You do not want to be stuck with a system that offers little or no support only weeks after you have bought it.
- Be sure you understand the difference between system fixes that require a new update and updates that add functionality. The former you should not have to pay for.
- Does the system has levels of authorization built in to ensure system and data integrity? You do not want to give access to all functions to everyone in your office.

With any level of automation, comes the need for a manual system to support that automation. This manual system must spell out who is responsible and authorized to do what, such as installing the system, installing fixes and updates, running processes where necessary and just making sure that any needed accessories are always in stock.

Training is also a very important aspect of any system of automation, and bookkeeping automation is no different. It is very important that employees receive adequate training in the usage of the system.

The cost of bookkeeping systems continues to fall, even as more functionality is added. Systems such as QuickBooks, M.Y.O.B., Peachtree all offer systems for under $250.00. These are extremely good business investments and can pay for themselves in months given the time saving and business functionality they offer.

The key in selecting any automated bookkeeping system is to first know your own business requirements and the common pitfalls and then let those drive the rest of the decision process.