| QuickBooks holds over 80% of the U.S.
market for end-user small business accounting software, and Peachtree is a highly visible
second place. So does it make sense for a CPA with small business clients to consider
Simply Accounting from ACCPAC International Inc.? For some CPAs, the answer may be yes.
Each of these products has its own advantages. This article identifies some of these
advantages that can make the CPAs work a little easier, as well as identifies the business
reasons why a CPA might want to incorporate each of these products into his or her
practice.
A CCPAC International Inc., a subsidiary of Computer
Associates International Inc., created a stir in the entry-level accounting software
market last fall. It announced that it would give away 1 million fully functional copies
of its entry-level product, Simply Accounting'. More than 300,000 people use Simply
Accounting worldwide, but in the United States QuickBooks and Peachtree dominate the
market.
QuickBooks holds over 80 percent of the U.S. market for
end-user small business accounting software, and Peachtree is a highly visible second
place. So does it make sense for a CPA with small business clients to consider Simply
Accounting? For some CPAs, the answer may be yes. Each of these products has its own
advantages. This article identifies some of these advantages that can make the CPAs work a
little easier, as well as identifies the business reasons why a CPA might want to
incorporate each of these products into his or her practice.
Competitive Advantages
As most accountants are aware, QuickBooks has made the most
aggressive attempt to appeal to the end user with no knowledge of accounting. It is
organized around activities, rather than journals and ledgers. One of the features of
QuickBooks that small business CPAs will appreciate is the Register feature, which allows
users to record transactions directly into general ledger accounts. This can be a
particularly efficient way to record a large volume of checks and deposits into a bank
account.
Another helpful feature of QuickBooks is the ease with
which mistakes can be removed from the accounting records. While this can create internal
control issues, it is possible to maintain a more complete record of transaction
activities by activating the Audit Trail feature. QuickBooks also has a number of other
time-saving features. Some of the most helpful to accountants include the option to link
accounts directly to lines on income tax returns, the opportunity to record transactions
in a new fiscal year without being forced to close out a previous one, and the ability to
print IRS Forms 941 and 940.
Simply Accounting fills the bill nicely for CPAs who seek
ease-of-use and a familiar interface. The software's home screen icons reflect traditional
accounting journals. Other advantages include the option to record sales of noninventory
parts and services without first setting them up as items, and to enter different sales
tax percentages directly into the sales transaction entry window. Payroll processing
requires fewer screens than QuickBooks, and with Simply Accounting it is not necessary to
subscribe to a payroll service online. Moreover, jobs are created independently of
customers. Simply Accounting also has the ability to display a transaction in journal
entry form before it is saved. This allows mistakes to be detected and corrected before
they are recorded.
Peachtree is arguably the most powerful accounting package
of the three. It is the only one that can accumulate entries in batches; therefore, it is
well-suited for clients with large volumes of transactions that cannot be efficiently
processed with one-- transaction-at-a-time packages, such as QuickBooks and Simply
Accounting. This enables a growing business to use Peachtree for a longer period of time
before finding it necessary to upgrade. In addition, Peachtree offers more sophisticated
fixed-asset record keeping capability, and the ability to cost inventory using
last-in-first-out and first-- in-first-out as well as average cost.
Business Considerations
Since QuickBooks is the No. 1 choice of U.S. small business
owners, the CPA who is familiar with this package can easily take over the write-up work
from another accountant or fix problems and errors in a client's existing database. Plus,
the demand for training and new installations among small business owners is likely to be
greatest for QuickBooks.
Because it is the second-most widely used product,
Peachtree is also a good choice for many of the same reasons, especially for small
businesses with larger transaction volumes.
But there is a benefit to offering Simply Accounting,
despite the fact that it is not as well recognized. Many small business owners are not
committed to a particular software package and are primarily looking for a CPA who can
relieve them of their paperwork headaches. These clients are more likely to be retained,
and more revenue is likely to be earned, if their accounting is done on a package that has
fewer competing installers, and that is less aggressively promoted to end users. This may
make it desirable to offer Simply Accounting either exclusively or in conjunction with
other entry-level products. Each of these three packages is well-suited for the small
business market, and each has its own unique advantages. CPAs with knowledge of all three
packages are in the best position to help existing and prospective clients with their
accounting software needs. |
