Keep it Simple;
Small Businesses Often Have
no Need for Complex Accounting Software
This article compares three cash book systems that aim to
make an accountant's job easier and the small fry more profitable:
- Cashflow Manager 4.02,
- CashManager V9, and
- Cashman V3.30c.
Cashflow Manager was found to be the best package tested
because of its simple, easy set-up and its excellent help system. CashManager V9 is
functional and easy enough to use, but not as intuitive or simple as Cashflow Manager.
Cashman V3.30c was found confusing and counter-intuitive, particularly compared with the
other packages reviewed.
Cashbook Software
FOR CLIENTS WHO DO NOT REQUIRE the power or complexity of a
small business accounting system such as MYOB or Quicken, a simple computer-based cashbook
may be the solution. These packages are distributed through CPAS who also install the
software and provide accounting support rather than being available off the shelf from
computer retailers.
According to Cashflow Manager, one of the vendors of
cashbook software, it is not only the clients who benefit, as CPAs who supply this
software can reduce bad debts, better service their clients and improve profitability by
providing clients with compliance or business development advice rather than spending time
wading through the 'shoebox' of receipts. If you are still skeptical, Cashflow Manager
also provides CPAs with a six-minute video that includes testimonies from three
independent CPAs who extol the virtues of cashbook software claiming a reduction in
account and BAS preparation from around 10 hours to just a couple. Of course this will
depend upon how disciplined your clients are in terms of actually using the software to
regularly enter all expenses and receipts, placing entries in the correct columns and
ensuring the accuracy of entries.
Whether clients will use the software or prefer a manual
cashbook is a matter of personal preference. Around the time of GST implementation, I
personally witnessed our local fish and chip shop owner struggled to use an computerized
accounting package. His job was made that much harder due to the raw fish he sold being
GST free whereas the cooked fish included GST. Needless to say, a few weeks later the
computer was out the door leaving me wondering how his accountant manages to complete a
BAS given the lack of records that are kept. It is for these type of people: the local
milk bar owner, the fishmonger, the tradesman and the small business owner, that cashbook
software may be helpful for at least some record keeping without intimidating them.
Here, we look at three simple, PC-based packages and test
them on an old Pentium computer running Windows 98 since many of the small businesses do
not have access to the latest computers.
Cashflow Manager 4.02
Cashflow Manager was found to be the best package tested
because of it's simple, easy set-up (both for the client and the accountant) and its
excellent help system.
The software is essentially a computerized version of a
cashbook which makes it very intuitive to operate. Clients simply note down their expenses
in the cashbook, allocate the expense to the correct column and the software automatically
updates the appropriate GST column. As CPAs you would probably supply your clients with
the same chart of accounts that you use in your general ledger package, but if not, there
are supplied template charts of accounts for various types of small business.
In keeping with the simple theme, the online help is
excellent and explains concepts to clients in non-accounting language and there's a video
tutorial showing how to use specific functions.
Like all of the cashbook products we tested, Cashflow
Manager uses single entry accounting and provides support for GST on a cash accounting
basis via a BAS worksheet report.
Unlike its competitors, the software includes links to most
Australian banks' Internet banking modules to allow the download of bank statements for
reconciliation purposes and includes a full budgetary module, although in practice the CPA
would set this up for the client.
Cashflow Manager has direct support for 12 general ledger
software processes including functions to allow clients to backup and email you a copy of
the data file and to easily transfer data files to disk.
Overall Cashflow Manager is an excellent package with no
complaints.
CashManager V9
You could be forgiven for getting the names of the packages
confused, however the confusion over names quickly ends as soon as you run each package.
Although CashManager is fully functional, it is not as intuitive as Cashflow Manager.
Clients will need to fill out a form for each transaction and deal with account codes.
Transactions are listed, similar to most small business accounting packages, although this
detracts from the simplicity of using a cashbook package.
The help function is adequate and provides step-by-step
guidance but the use of accounting terms, whilst more accurate, can be confusing for many
small business clients.
Set-up is also somewhat more complicated since you must
either supply the chart of accounts in a file or create it from scratch. Unlike Cashflow
Manager, there are no templates or standard charts of accounts available. However, unlike
the other packages we reviewed, CashManager can calculate GST on either a cash or accrual
basis without the need for additional software.
Bank reconciliation is easy enough since you tick each
entry as it appears on the bank statement, however there is no provision to electronically
download the statement via internet banking. A simple budgeting module is provided, again
set up via forms.
There is support for four general ledger packages used in
CPAs' practices although some of the major packages such as MYOB and TeleLedger are not
directly supported. As with Cashflow Manager, backups are easy with the option to email
the file directly to the accountant provided the client is connected to the Web at the
time they attempt to send the email.
The package is functional and easy enough to use, but not
as intuitive or simple as Cashflow Manager.
Cashman V3.30c
Perhaps if we had appropriate training and access to a
manual, we would not feel that this package is confusing and hard to use.
After you load the package, it automatically prints a
10-page Quick Start tutorial. It is, however, very unlikely that most clients would read
through this document, particularly as there are no illustrations. The help system is
basic, merely explaining what each function does (using accounting terms) but without
step-by-step assistance on how to use the function. A few screen shots and examples would
have made the help system considerably more user-friendly.
Setup is easier than CashManager since you can either use a
standard CeeData, Handisoft or Solution 6 chart of accounts or start with a blank chart.
Nevertheless, you would still need to spend time refining the chart to suit each client's
business.
Bank reconciliation is not intuitive since there are no
ticks showing which items have been marked off, rather, items move from one column to
another adding to screen clutter and confusion. We also managed to crash the program
during our tests, although Trimar claims that this should not have happened. There is also
no support for Net banking.
Unlike the other packages, Cashman has the facility to
print tax invoices, provided you can work out how to do so. Unfortunately it was not
straightforward and we found invoices did not print and ledgers were not automatically
updated. A wizard or the use of step-by-step screens would have made the process much
easier to use.
There is better support for accounting general ledger
programs than in CashManager, but Cashflow Manager still has the most number of supported
packages.
While I do not doubt that this package works and may be
adequate for some businesses, I found it confusing and counter-intuitive, particularly
compared with the other packages reviewed.
Copyright 2003 Bell & Howell
Information and Learning ABI/INFORM Copyright 2003 CPA Australia
Australian CPA March, 2003, BYLINE: DAVID NEIGER IS A TECHNOLOGY WRITER |