Choosing Accounting Software

4. Flexible Information

4.1 Start by looking at how the software handles sales and purchase transactions.

Most software provides these functions in the form of a sales and purchase ledger.

• Can you input detailed information on your customers and suppliers?

4.2 How flexible is the structure of the nominal ledger?

Most accounting software is constructed around the nominal ledger, which brings together your assets, liabilities, income and expenses. A ledger with a flexible structure allows you to define the best accounts structure for your business.

• Can you categorise different items according to departments or cost centres?
• More flexible systems allow you to define how your accounts are allocated. Simple systems require items to appear in the order in which they occur on the balance sheet or profit and loss account.
• Does the software allow you to input a full range of transactions?
• What budgeting facilities does the ledger allow for?
• Can you generate separate ledgers to track specific pieces of information?

4.3 The more flexible the software is, the more you can tailor it to your business. This can make a major difference to the overall usefulness of the software.

• Will your accountant be able to use the reports to prepare year-end information?