Purchasing accounting software can be a challenge and should not be undertaken without some serious forethought. Certain crucial factors should be taken into consideration before even obtaining the software.

You should assess the requirements of your business before investing in any accounting software. It is essential that the accounting software you use is aimed specifically at the needs of your business. It is worth researching features of software packages to ensure that they are fitting to your needs.

Choosing the right software

1. Current system
Firstly you should look at your current accounting system and identify existing problems and needs that are not adequately met. Request feedback from everyone that uses the present system to assess the weaknesses and any issues.

2. Budget
Decide on a realistic budget and calculate what funds are available. It is also worth setting a preliminary time frame at this stage.

3. IT department
Consult with your Information Technology staff (or computer consultant) and obtain their advice regarding technologies that are best suited to your current equipment and abilities. Consider upgrading your hardware if it would not be able to cope.

4. Assessing requirements
Hiring an impartial third party or consultant can often assist in evaluating your needs and selecting a suitable product. Your accountant will be familiar with your situation and will be able to assist you throughout the process of choosing a suitable product.

You should evaluate your accounting requirements:

• Who will be using the system?

• How many simultaneous users will be on the new system?

• Will you be using it for credit checking, forecasting, payroll, job costing, taxation, year ends, customer management, human resources etc?

You should also take into consideration the characteristics of your business:

• What type of business are you in?

• What is your annual turnover?

• How many employees do you have?

• Do you need to integrate a stock control system?

• Do you trade from more than one location?

• Do you need support for multiple currencies?

5. Research
Research is a key element of deciding on a software package as it is essential to make an informed choice of all the available options. The Internet is an invaluable tool and by simply typing 'accounting software' into your search engine you will be bombarded with various sites that can help you to pinpoint the package most suitable to your requirements. (Make sure that you select UK packages). Trade shows, newspapers and articles are also important tools to study the current range of software available.

6. Comparing Packages
Make a list of all the products that you are aware of and compare their main elements and features with your requirements. Selecting the right software is not so much about picking the right package but mostly about eliminating the wrong ones.

7. Studying products
With a short list of potential options, visit the Internet sites for each accounting software package. Concentrate on the key points and evaluate the worth of each feature.

8. Additional offers
Request further information from various individual vendors. In their latest brochures or by talking directly with them, you can discover whether they are putting forward additional resources along with the accounting software. These offers may include ongoing support, a help line, installation or training etc. Compare prices between different vendors and different products.

9.Software demonstration
It may be worth considering a software demonstration by the reseller in your area. You will have the opportunity to ask questions and see the program's capabilities. Most importantly you will have the chance to test the software and assess its performance and features for yourself.

10. Feedback
Take into account recommendations of other users of the product. Ask them whether they are satisfied with the product and for details of any problems they may have incurred.

11. Installing software
Time to make your decision! Take into consideration all factors of running the program, bearing in mind ease of use of the product on a day-to-day basis, the time required to get the new system up and running and the inevitable manual work whilst installing the new system. Make sure that maintenance contracts, support agreements and all documentation are checked carefully. You will then obtain the software that is the most appropriate for your requirements.

12. Informing relevant people
Don't forget to tell your local HM Revenue & Customs VAT office and your accountant of the change.

13. Training
Finally, proper training is almost essential for the successful running of any new software product.

Summary

In short, when reviewing accounting software, consider:

• What problems do you have with your current accounting system?

• What is your budget and time scale?

• What products do other people recommend and what is their opinion of your choice?

• What do Internet sites and articles in magazines consider to be best?

• What type of software will match the size and requirements of your business?

• Which software will be most appropriate for your hardware?

• What added extras do different vendors offer?

Please note: This guide is intended to provide basic information only. Where specific advice is required, we recommend that you seek proper professional help; either from this firm or other suitably qualified person or practice.