What should I consider when choosing Business Management / Accounting Software - Part 1

Customers and Accounts Receivable

Author: mrt/Friday, 23 November 2012/Categories: Business Management Software

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It is extremely important that new and existing Business look into their Business Management / Accounting Software requirements carefully. Many business owners go to their accountant for advise on what software they should use. While your accountant is important to your business they are not generally hands on and cannot foresee everything that a business requires. The only person who really knows the business is the business owner. After 16 years assisting businesses with solutions that meet their requirements I have created this guide to start business owners off in the right direction.

Here are some important considerations.

Customer Requirements:
Most software can handle the basics like Invoicing, Accounts Receivable, Receipting, Statements and Account Aging like 30 60 90 days.
The important question is does your business require more functionality.
Aging Periods: Does your business operate on different aging periods like 7, 14, 21 Days Etc. Does your business require a variety of aging periods. Eg some customers have 30,60,90 Days but other have 7,14,21 Days.

Customer Address's and Multi-Location:
Do any of your customers have more than one delivery address's or have a head office with branches. Do you have to invoice the branch but the head office pay the branch accounts. If the answer to this is yes you should have Head Office / Branch Consolidation Functionality.

Individual Customer Pricing Methods
With increasing competition in the marketplace business's are finding that a one price suits every customer policy no longer works. Many business's are having to do special individual prices on certain items for select customers. This functionality is almost essential. The days of keeping special price arrangements on spreadsheets or other methods is over. Special individual pricing needs to be automated in the system so that when an invoice is raised for a particular customer and a special priced product is entered the pricing is correct for that customer. Having this functionality keeps your customer happy and also minimises your staff having to do credit notes to adjust incorect pricing.

Sales Reps
Does your business use Sales Representatives to sell and promote your product. If you do use Sales Representatives you may pay them commission on Sales or at least want to track their individual sales. This is another area of functionality should be looked into when deciding on a Business Management / Accounting System for your business
You can read Part 2 of this article here
You can look at some Advanced Business Management Software here
Sage 50 Accounts Pro
Sage Pastel Evolution 

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