Leading High-End Accounting Software

By Anthony Basile, Louis J. Papa, and Randy Johnston

In Brief

Choosing from Many Choices

In today’s fast-changing business world, the choice of accounting software is a big decision for most companies. The authors discuss the top accounting packages for mid-sized and larger businesses, through explanation, comparison, and customer comments. The accounting package a business chooses should be the one that best serves its current needs and can most easily be adapted to its future needs. Customer support is important, especially when the software is first purchased, and many questions require answers for implementation to be successful.

For the many millions of small businesses in the United States, selecting a new accounting software package is a cumbersome and confusing process. Most business owners know little about the accounting software packages available and have only rudimentary ideas about how to evaluate the alternatives. Many owners rely on advice from retail store clerks, recommendations from resellers, or national marketing campaigns as the primary basis for their selections. Choosing the wrong product can cost the company dearly. There is a more systematic and proven way to evaluate and select the right accounting software.

Selecting Accounting Software

Selecting accounting software is not a one-person job. Representatives from accounting, sales and marketing, inventory and manufacturing, and distribution should be included in the decision. This steering committee should define the objectives of the new software, including its features and benefits. This group should be limited in number and have an odd number of members to facilitate decision making and avoid deadlocked votes. The committee should have the power to choose the product and vendor and recommend it to senior management, or have direct authority to choose the product and vendor and negotiate installation agreements and expenses.

The steering committee should assess the current accounting systems. Although this may be difficult, scrutinizing the current system will make updating or replacing it much easier. The two parts of this process are identifying current problems and documenting them.

Identifying the problems with the current system leads to desired changes. Previous hardware or operating system changes could affect applications and make it appear that the company has outgrown its current package. If employees do not receive regular training, they may not know how to use the software. Likewise, newer releases usually fix bugs, introduce new functions, and update compatibility. The company should also clean out its data files, including deleting old invoices and customer records, which can be the cause of application failures. Finally, the committee should solicit input from as many people as possible.

It is crucial to document all information discovered in this process for future evaluation and communication with vendors.

Companies that have a good relationship with their current value-added reseller (VAR) should share these assessments and give the VAR an opportunity to submit a recommendation for solving these problems and issues. If the problem is the VAR, consider replacing them.

The next step is to prepare a preliminary budget and a time estimate. Having a preliminary budget estimate will be helpful when negotiating with consultants and VARs.

Depending upon the size of the company, the scope of the solution needed, and the available staff time, hiring an independent consultant could be a good move. It allows the business to capitalize on the consultant’s expertise and to work more efficiently, especially if a consultant is brought in early in the process. On the other hand, an independent consultant can be very expensive and can narrow the choices. It is possible to conduct your own evaluation and selection process without the assistance of an independent consultant, but many choose to narrow the possible choices first, and then bring in consultants for each product.

Some rules of thumb for finding and working with an independent consultant include:

While IT staff should be part of the project from early on, they should not be expected to solve accounting problems. They should not be expected to make the final selection, and IT staff do not need to be involved in the actual selection process. They should be kept involved for their advice on technologies and platforms.

Become Knowledgeable About the Product

The next step is to learn about available accounting software packages. The Internet has made it faster and easier to find information. Attending independent seminars, vendor-sponsored seminars, and trade shows can be helpful at this stage.

Make a list of all of the products that might meet the company’s needs. If possible, find out what competitors use. To evaluate the products side by side, preparing a spreadsheet listing information for each product is very useful. The spreadsheet should include information about modules, costs, platforms, customization capabilities, and whatever else is important. The objective is to not be blinded by insignificant shortcomings. This matrix will also be helpful in sharing information with everyone that has input into the ultimate decision.

For each product, begin tabulating a list of impressive features and facts, such as awards received by the product or a unique feature. Add to this list as the evaluation continues.

At this point, start to eliminate potential products because of missing modules, missing features, or prohibitive cost. Cross them off the list, and note why. Selecting the right package is mostly a process of eliminating the wrong packages. Continue to eliminate products throughout the entire evaluation process. Spending time at this stage will save time at the end of the selection process.

Compare a complete list of the features required from the new system to the list of features provided by each product. There are several good software programs that can help in this process, such as the Accounting Library, which is the least expensive and most comprehensive selection tool available. This product lists and explains over 2,500 accounting features in the standard edition and over 4,500 features in the client/server edition. Users simply rate each feature from 0 to 9, and the program compares these ranks to more than 125 top accounting packages by the user’s specific needs. This procedure should eliminate even more software packages from further consideration. The critical task at this stage is to whittle your list down to a manageable group, possibly three or four choices.

Internet sites can provide a wealth of information on accounting software vendors. Study the available information for each of the remaining candidates and take detailed notes.

Contact each vendor and request their latest brochure information (and possibly an evaluation copy of the software). Expect sales representatives to come calling shortly thereafter, which is why the obvious bad choices should already be eliminated.

Use all of the knowledge and insights gained to this point to finalize a short list of system requirements for the new software.

Identify the best resellers for the products under consideration and arrange demonstrations. Provide a list of features to be demonstrated, and allow vendors some time to show exceptional features of their product. Demonstrations can generally be done in about two to four hours, but comprehensive demonstrations can take eight hours. Ask about their installation methodology, their track record for getting the systems up and running properly on time, and a list of three to five references. As the decision gets closer, ask vendors to specify which staff will be assigned to the job, and what their qualifications and availability are. The vendor should install an evaluation copy of the product so it can be further evaluated when they are not there.

Additional testing of software can be beneficial, but keep in mind that users may not know how to use the software. Write down any problems encountered and address them with the reseller or consultant. Update the list of good and bad points for each product based on testing experience. Include subjective information about performance, look, feel, and ease of use.

Issuing a formal request for proposal will lead VARs to respond with an exhaustive report that includes every feature, detailed pricing, timelines, and methodologies for accomplishing the implementation and training process. VARs may spend a great deal of time evaluating the organization and interviewing personnel in preparation for the RFP. For most companies, RFPs are not necessary, but some companies always use them. Government agencies are required to undertake the RFP process.

Before making any final decisions, the legal department should review all documents and contracts, including the ongoing support agreement. Review ongoing maintenance costs, legal recourse in case the software does not work, and data ownership (some vendors employ complicated tactics to ensure indefinite ownership of proprietary data).

Recent advances in technology have created the option of renting a system hosted by the vendor, rather than purchasing the system outright. Access to a software product is provided by an application service provider (ASP), which manages and delivers application capabilities to multiple entities from a data center across a wide-area network. Hosting can result in significant cost savings, faster implementation, less exposure, and tighter security.

Traveling to the headquarters of the software publisher as well as to the VAR’s office can provide some assurance that the company has the resources to meet ongoing needs. This may seem unnecessary; however, a little due diligence may go a long way toward avoiding a costly mistake.

Before making a final decision, find out how much bandwidth and availability the VAR has for implementing the proposed solution. If planning to implement the system in many different locations, request a Gant chart depicting an implementation timeline and the staff listing for each location. Force the VAR to specify these details before making a final decision, otherwise they may be unaware of important availability issues.

At this time, contact the references provided by the vendors and ask a few simple questions:

References are not always forthcoming and honest. Some will not say anything negative for fear of a lawsuit. Be wary of suspiciously short responses or people unable to delve into details. Multiple positive references should indicate a satisfactory product. Negative feedback could mean a “good product/bad reseller” or a “bad product/good reseller” situation.

The decision. If there is still more than one option left on the list, make a decision based on predetermined guidelines. If this doesn’t help, choose the product that is easiest to use on a day-to-day basis, that is built on the most promising technology, that offers the strongest reporting features, or that can best change to meet the future needs of the company. Be sure to consider the VAR’s capabilities in the decision, as this may be the most important factor in ultimate success.

Planning. The length of time needed to evaluate, select, and implement a new system for a larger company should typically be 12 to 18 months:

Overview of Selected Software

Given the bewildering array of choices, deciding on a particular program can be confusing. The following is a brief description of some of the leading products on the market, accompanied by a tabular comparison of certain software features (see Exhibit 1, Exhibit 2, Exhibit 3, Exhibit 4, and Exhibit 5).

Best Enterprise Suite

Best Enterprise Suite (www.us.sage.com) is designed for companies with 200–2,500 employees and $25–250 million in revenues. It integrates well with other applications and was created using Microsoft technology. The menus, lookup windows, reports, and add-on features are easy to customize.

The program’s financial module has useful features, such as a general ledger function that allows the company to process intercompany transactions, establish flexible accounting periods and unlimited budgets, and perform future postings; an accounts receivable function with extensive drill-down capabilities; an accounts payable function that allows automated vendor-related tasks; a cash management function that allows for bank reconciliations; and a fixed asset function that automatically calculates depreciation. The advanced financial module includes a multicurrency management function that provides multicurrency and analysis capabilities; an advanced allocations function to distribute company expenses; and an advanced budgeting function for company-wide planning. The project accounting module features a project accounting function that allows a company to track actual and estimated costs through a project; a link to Microsoft Project; and an e-time sheets function, allowing for time and expense entry and project management. The product’s strengths are in manufacturing, distribution, and Excel integration.

Best Enterprise has received three consecutive Microsoft Best Technology Integration Awards and three consecutive Software Technical Assistance Recognition Awards (STAR) for outstanding customer service. Pricing ranges from $30,000–200,000, depending upon the number of users.

Best MAS 90 and 200

Another Best product is MAS 90 and its SQL version, MAS200 (see www.us.sage.com). Best MAS 90 is a 32-bit accounting, distribution, and light manufacturing software that includes extensive core feature sets in each module and many third-party add-ons. It is available for Windows NT, Windows 2000, and SQL Server networks. There are three built-in report writers, including the industry-standard Crystal Reports. MAS 90 can adapt to new technologies as a company grows and its needs change. The product’s strengths are in product usability, including web integration, Microsoft Office integration, breadth of modules, and simplicity. Pricing ranges from $8,000–37,000, depending upon the number of users.

Microsoft Great Plains eEnterprise

This Microsoft Great Plains Business Solutions product (www.greatplains.com) can grow and change with the company. Some of the features of eEnterprise include a 24-hour training capability via Microsoft Great Plains Internet-based training; automated fixes, which are a feature of the electronic support site for customers; and automated time and expense entry through Microsoft Great Plains eExpense and eTimesheets. Using Microsoft Great Plains Business Solutions, a company can create a corporate portal to host a company directory, employee business cards, a customer directory, customer business cards, and a vendor directory. The product also includes an automated payroll system and a Canadian payroll add-on, and it provides a well-trained support staff. The product strengths are in completeness, human resources, and integration into Microsoft Office. Microsoft Great Plains was rated 13th on the 2001 list of top 50 training organizations in the March 2001 Training Magazine. Pricing ranges from $50,000–250,000, depending upon the number of users.

Microsoft Great Plains Solomon IV

Another Microsoft Great Plains (www.greatplains.com) package is Solomon IV, which includes project management, inventory, distribution, and field service capabilities. As with eEnterprise, customers can create a corporate portal. In addition, there is an application server available for the software that allows companies to identify key processes and run reports on them. This package is based on Microsoft architecture and is quickly customized, easily integrated into existing systems, and can adapt with the company. Its strengths lay in project costing and Excel spreadsheet processing for light manufacturing. Pricing ranges from $11,700–186,000, depending upon the number of users.

Exact Macola

Exact Macola (www.exactsoftware.com) provides business management solutions for mid-sized enterprises and includes integrated e-commerce, enterprise resource planning, customer relationship management, business intelligence technology, customization, and companion modules. The accounting module provides drill-downs to all financial information in the general ledger, bank book, accounts receivable, accounts payable, currency manager, and asset depreciation modules. The general ledger module maintains multiple budgets and prior years’ data. Additional features in this module include full accounting masking capabilities, statistical accounts, multiple subsidiary support, and drill-down capabilities. The accounts receivable module tracks customers’ forward balances, open items, and credit history. Additional features available for this module include online access to client account information, on-the-fly entry of new clients, control over aging periods, service analysis reports, and customer audit trail reporting capabilities. The currency manager module maintains multi-currency transactions; additional features include transaction details maintained in native currency, currency reevaluation for open transactions, and sub-ledger reports that reflect both the native and the home currency amounts. The asset and depreciation module tracks assets, including depreciation; defines up to nine different reporting entities per asset; records asset acquisitions, changes, transfers, and dispositions; and forecasts future years’ depreciation expenses. The software’s strengths include serial and lot number tracking, EDI integration, and a simple production order-processing module. Pricing ranges from $13,700–73,000, depending upon the number of users.

Navision Attain

Navision Attain (www.navision.com) is designed for mid-sized companies. Among others, it includes general ledger, cash manager, sales and receivables, purchases and payables, and inventory modules. The general ledger module produces complete audit trails, assigns budgets for each account, produces trial balances, consolidates subsidiaries, operates in euros, defines the format of reports as needs change, and creates default GL accounts for purchases frequently made with the same vendor. The cash manager balances local and foreign currencies, tracks cash receipts and payments, makes disbursements manually or electronically, and reconciles all bank accounts. The sales and receivables module supports customized customer accounts, flexible payment terms, aging reports, calculation of finance charges, flexible invoicing and billing functions, automatic calculation of sales invoice discounts, automatic exchange-rate conversions for foreign currency, and sales order management. The purchases and payables module includes analysis of vendor accounts, management of payments to vendors, flexible recording of vendor invoices, and automatic generation of purchase orders.

Attain is a Microsoft-compatible program with two database options, Microsoft SQL Server 7.0 and Navision Server (a high-speed proprietary database that is exceptionally stable). The company also requires that its VARs be trained in software, accounting, and business administration. The employees are well prepared to understand accounting problems as well as technical issues. The strengths of the product are customizability, speed, and drill-down capabilities. This software ranges from $13,000–160,000, depending on the number of users.

E by Epicor

This middle-market product suite has a strong CRM (the clientele offering) and has good manufacturing capabilities (in the sheet metal fabrication, capital goods, and plastics and rubber industries). The web-enabled configuration is flexible enough to create and cost build orders in real time. The help desk software enables companies to build customer or internal documentation that is web-accessible. It leverages the Internet through advanced architecture, easy-to-use portals, and e-business applications. Epicor (www.epicor.com) supports various industry-standard technologies, including Microsoft’s Message Queue Server, Transaction Server, and COM architecture; it also uses Microsoft VBA technology to enhance adaptability and allow easy integration with third-party applications. Epicor also offers implementation support through its own professional services organization. Pricing ranges from $35,000–225,000, depending upon the number of users.

SAP R/3

SAP R/3 (www.sap.com) was created for the ERP market but has had success in mid-sized companies. The software includes accounts receivable, accounts payable, general ledger, fixed assets, purchasing, human resources, cash management, and cost center accounting modules. The software is configured using industry-leading hardware and software, including Windows NT and SQL Server. The product’s strengths are comprehensiveness, module breadth, and integration. Pricing ranges from $22,500–450,000, depending upon the number of users.

ACCPAC Executive Series

This software is prepackaged and ready to use right from the box, but the user is also given the PowerBuilder source code, making it easy to modify the program as needs change (see www.accpac.com). Some features include business status reports, an easy-to-use interface, and full-range reporting. A general ledger module allows for flexible account structure, unlimited budget plans, multicurrency support, financial report writing, drill-down account analysis, automatic consolidations, and intercompany balancing and standard reports. An accounts receivable module provides payment history and invoice status tracking, default account numbers, multicurrency support, multiple invoice types, finance charge handling, receipt processing, collection management, and standard reports. An accounts payable module allows streamlined payments with extensive default data, support for recurring vouchers, automatic duplicate invoice checking, electronic payment support, and standard reports. Pricing ranges from $30,000–100,000, depending upon the number of users

ACCPAC Advantage Enterprise Edition

The Advantage Enterprise Edition is ACCPAC’s main mid-market offering. The modules include a general ledger with strong budgeting, multicurrency support, statistical accounts, a financial report writer, consolidations and inter-company balancing, and standard reports. Its accounts receivable module tracks payment history, invoice status, and national accounts and contains a new web-enabled CRM product. The product has some of the best web integration available, and offers warehouse integration with the Radio Beacon wireless warehouse management system. Its strengths include a consistent user interface, choice of database, and broad third-party support. Pricing ranges from $30,000–100,000, depending upon the number of users.

Open Systems Traverse SQL

This package is a 32-bit software package developed with Microsoft Access (see www.osas.com) that interfaces with all Microsoft products. The source code is also provided with this software, so that changes can be made when necessary. It provides a comprehensive audit trail and extensive drill-downs. The software allows custom reports using Access, online analytical processing, or Crystal Reports. Modules available with this package include an accounts payable module that analyzes historical information and provides Canadian reporting; an accounts receivable module that includes aging and invoice entries; and a general ledger module that includes cash flow statements and automatic reversing entries. The software consists of separate modules for each accounting function, thereby allowing a company to buy only those modules it requires, rather than the entire package. Traverse SQL also handles multiple currencies and languages. Its strengths are its modifiability and ease of use. Pricing ranges from $20,700–192,000, depending upon the number of users.

Syspro Impact Encore

With strong manufacturing and distribution capabilities, Impact Encore (www.sysprousa.com) provides unique costing and scheduling features that facilitate its use. Handling multiple warehouses is easy, and access to information from different query views is logical. The product includes all of the core financial modules, as well as a CRM module, advanced planning and scheduling modules, and visual scheduling capabilities. Its strengths include the choice of operating platforms (including UNIX) and the functional view of the data. Pricing ranges from $15,000–80,000, depending upon the number of users.

View Exhibit 1, Exhibit 2, Exhibit 3, Exhibit 4, and Exhibit 5 for this article.


Anthony Basile, PhD, CPA, is the assistant chair of the department of accounting, taxation, and business law, and
Louis J. Papa, JD, MBA, an adjunct professor, both at the Frank G. Zarb School of Business at Hofstra University, Hempstead, N.Y. Randy Johnston is the executive vice president of K2 Enterprises, Hammond, La.


This Month | About Us | Archives | Advertise| NYSSCPA


The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.


©2002 CPA Journal. Legal Notices

Visit the new cpajournal.com.