Packaged accounting software vs SaaS software

MORE FUNCTIONALITY EQUALS MORE VALUE

“As you go up the range you get more function and at the enterprise level you get things like manufacturing and dynamic inventory allocation, a user-driven report writer and user security. You get all sorts of things that you would never dream of in the lower end products. But in fact the software is exactly the same from the smallest to the largest; it is just that we turn features off as you go down the range.

“Also, it retains that same user interface all the way through. That will help our users in terms of their learning curve and their return-on-investment. The more functionality that you can actually use, the more value you can get out of it. Most times accounting software is designed by accountants for accountants and QuickBooks has philosophically said most people that run businesses are not accountants so it is better to create a solution that works for ordinary people.”

For many business owners, telling the difference between one software package and another is an almost impossible task, and one often left to the accountant or finance manager who defaults to whichever package they have used previously. And while MYOB and Reckon dominate the Australian market, there is a plethora of other solutions out there, including Peachtree, Coda, and even Microsoft’s Money.

According to the managing director of MYOB Australia, Tim Reed, it is important that the business owner ask themselves some basic questions, such as what the business needs will be two years out. It is also worth ensuring that the package is one that the company’s accountant or bookkeeper is familiar with, while also thinking about the number of people in the business that will need to access the software.

When it comes to making the buying decision, reputation also helps.

“MYOB is a trusted and recognised brand globally,” Reed says. “Small businesses trust us to deliver tools and services that will empower and enable them to work smarter, not harder.”

WHAT WORKS FOR YOU?

While different packages essentially do many of the same things, they will at times tend to do them in different ways. The new version of QuickBooks also sports a new user interface, which is designed so that almost all of the functionality is not more than two clicks away from the first screen the user sees.

According to Dr Grant Cowie, chief executive of Cognito, when it comes to selecting software, feature checklists are often irrelevant, because so much of the functionality is the same across packages. He says it is better for clients to investigate how a package performs a function, and whether that suits the business. He also recommends investigating those things that are unique to their business that they find hard.

“Every software package is going to do bank reconciliation and stuff like that, so you forget about all of the mundane stuff and list out the things that are going to be difficult,” he says. “Then you use that as the filter to determine which packages to look at. Even a very small business might not realise quite how unique some of their requirements are, that they just take for granted because they have been doing it on a spreadsheet.”

Reed says MYOB also has an established program of working with software developers that can assist clients who need more than the core applications can provide them.

“We have an established developer program that can tailor solutions to meet the needs of particular industries or niche markets, with MYOB as the accounting engine.

“We also recognise that small businesses are becoming more mobile with the proliferation of laptops, mobile phones, cameras and GPS devices in small business workforces. “Information is more accessible, richer and delivered faster than ever before. MYOB will continue to develop and utilise technology platforms that will empower and enable small businesses to reach their goals.”

Cowie says Cognito is also differentiating its software through the inclusion of advanced reporting tools, including a report writer.