All About Accounting Software

Recently, Universal Business Computing Company, a leading provider of high productivity payroll and accounting software, announced the addition of auto-fill and auto-populate features to the general ledger and bank reconciliation data entry screens of their software. The new features in UBCC’s accounting software will help make certain that accountants are compliant with the upcoming 1099 requirements by providing consistency throughout the account coding and data descriptions.

The upcoming change in the 1099 tax compliance law is scheduled to become mandatory in the 2012 calendar tax year, and is of significant concern to accountants and their small business clients. In July, 2010, the Maryland Association of CPAs published a letter written by the American Institute of Certified Public Accountants, which conveyed concerns about the burden that the expansion of reporting in the 1099’s would place on growing businesses.

Ken Garen, CPA, Co-founder and President of UBCC commented, “In addition, these added features contribute to our clients’ productivity and competitiveness in the current economy, and their ability to offer cost-effective compliance services to their clients.”

The newly added auto-fill and auto-populate features in the payroll software provide the capability to “type ahead” by accepting a previously entered account number or dollar entry, or by simply typing over to create a new entry. New entries are automatically added to the table, and the process significantly reduces the amount of time and increases the accuracy in the data entry of checks and journal entries used in the preparation of 1099s.

As one of eBay’s largest and most established golf sellers, with statistically 100% customer satisfaction, 3balls.com reputation was at stake when their sales volumes exploded. Luckily, Intacct gave them a financial back-office system that could scale and adapt to their ever-changing businesses needs.

3balls.com chose Intacct’s comprehensive financial management and accounting applications, delivered over the Internet. Instead of buying and supporting an internal IT infrastructure, 3balls.com pays a low, monthly subscription fee for employees to access Intacct’s financial applications anywhere, anytime.

3balls.com used Intacct’s integration service to easily fuse financial back-end applications with its existing e-commerce, order lifecycle management and inventory management system from CORESense, a provider of on-demand retail management software for companies with multi-channel sales strategies.

Today, sales data from 3,000 channel partners and 100,000 customers placing up to 400 orders a day on 3balls.com,
eBay and Amazon flows directly into the Intacct system.

Because all financial transactions are available in real time, managers can run channel-by-channel revenue comparisons and control the latest orders, inventory levels, shipping schedules and financial transactions without wasting significant time and effort on manual processes or report customization.

RedGear Technologies, developer of TaxWorks professional tax software, has partnered with CYMA Accounting Software to create a software package that will prepare the most complex tax returns as well as provide solutions for a broad spectrum of accounting needs. The new TaxWorks package will be available for the 2011 tax filing season.

RedGear Accounting, powered by CYMA, will be included with the TaxWorks software at no additional charge. The accounting and tax filing software includes general ledger, cash disbursements, cash receipts, after the fact payroll, accounts receivable, accounts payable, bank reconciliation, purchase orders and more. Additional modules, or upgrades such as live payroll, are available for purchase.

Including RedGear Accounting at no charge with the purchase of TaxWorks allows tax preparers to meet their clients’ bookkeeping and financial reporting needs. Tax preparers can increase their revenues, and save money doing so because they will no longer need to purchase a separate accounting or write-up software package. We feel that by working with CYMA to deliver RedGear Accounting we are giving our customers the best value on a full featured tax and accounting suite available in the market today.

Intacct is taking aim at services-based businesses with a new product and partnership.

Intacct’s Project Accounting application, now generally available, will help services companies keep better track of employee project hours and expenses compared to ad-hoc approaches done with spreadsheets or paper documents, according to the vendor. It also generates invoices based on that data, and provides users with role-based dashboards that let them keep tabs on a project’s progress.

In addition, the software includes a library of reports and graphs tuned for services businesses, allowing them to monitor benchmarks like “project delivery costs against plan.” It is also possible to develop customized reports.

Intacct also announced a partnership with SaaS (software as a service) project management vendor Clarizen that will result in an integrated product, according to a statement.

Overall, Intacct is tapping into a broad economic trend, according to one observer.

“A key component of every product company will be growing services revenues,” said Altimeter Group analyst Ray Wang via e-mail. “Today products are excuses to sell services. Project accounting provides one core component. Intacct delivers this piece. Clarizen delivers the resource scheduling, project tracking and task management.”

Demand for such software is growing since companies are more eager than ever to closely track project expenses amid the economic downturn, according to 451 Group analyst China Martens.

Intacct’s move puts it in closer competition with NetSuite, which gained software similar to Clarizen’s through its acquisition of OpenAir. Appirio is another player, with its project management software built on Salesforce.com’s Force.com platform.

The SaaS delivery model works well for services businesses because teams are often distributed, licenses can be added easily and deployment is rapid, Wang said.

Still, many companies are still getting by with Excel or using on-premises applications like Microsoft’s Dynamics SL, Martens added.

Revenue on a GAAP basis for the second quarter of 2010 was $81.6 million. This is an increase of $14.4 million, or 21.4%, from revenues over the same period in 2009. Net income, on a GAAP basis, for the second quarter of 2010 was $4.4 million, an increase of $0.9 million, or 24.9%, over the same period in 2009. Diluted earnings per share (EPS) for Q2 2010 were $0.06 and remained flat compared to the same period in Q2 2009, reflecting the issuance of an aggregate of 9.8 million shares of common stock in the Company’s IPO.

Adjusted revenue, which is adjusted for one-time purchase accounting adjustments (a non-GAAP measure defined in note 1 to the attached Consolidated Condensed Financial Information), was $81.7 million, an increase of $14.4 million or 21.5% from $67.3 million in the same period of 2009.

“We are pleased with our second quarter results and our 21.5% increase in adjusted revenue,” said Bill Stone, Chairman and CEO, SS&C Technologies Holdings, Inc. “We continue to execute on our strategy to remain focused on the financial services industry, worldwide, and grow our software-enabled services revenue, both organically and from our acquisitions, and in Q2 SS&C achieved a 25.9% increase in software-enabled services revenues over Q2 2009.”

“We continue to improve our operating margins and our strong 24.7% increase in adjusted operating income confirms our focus,” continued Stone.

We are focusing our development organization to deliver new products and services in 2010. Most recently we launched Risk Analytics’ daily and monthly risk reporting integrated with our fund administration business. SS&C Fund Services provides middle- and back-office services for more than 3,000 funds under administration, and supports multiple structures, including hedge funds, fund of funds, private equity funds and managed account platforms.
In Q2, we launched SS&C Private Equity Industry (PEI) Solutions, which combines our TNR Solution private equity platform with our private equity fund administration services. SS&C’s private equity business services more than 1,000 funds worldwide.
“We have spent considerable time in 2010 developing a high quality end-user experience for clients through secure web portals,” said Stone. “In Q2, we launched new web front-end portals for our fund administration businesses, TradeThru and LMS.”
The increase in their software-enabled services can be attributed primarily to the growth of their alternative investment services.
“We continue to see momentum in this business,” said Stone. “One deal of note was a Geneva-based fund of funds manager launching a managed account platform, did a worldwide search for a fund administrator and turned to SS&C for their expertise.”
SS&C Lightning, our capital markets solution, continues to gain market acceptance, particularly its collateral management capability. In Q2, Bank of the West completed their implementation of Lightning to support their fixed income trading, sales and collateral management services.

Accounting software is in the transition towards the use of hosted, on-demand services. Some experts are advocating a switch to a purely online Software as a Service (SaaS) model, where data and programs are hosted in secure data centers. Many industry leaders, including Sage, Intuit, CCH, Thomson Reuters and Microsoft, have advocated a switch to a model of some locally installed applications and some hosted services (also known as “software plus services”).

This hybrid approach, which has been adopted by many publishers, offers solutions that leverage the cloud for reach and flexibility, but connect into established on-premise systems for depth of features. For example, the Sage Non-Profit Solutions group recently announced ePhilanthropy, a web-based service targeted at nonprofit fundraising. While there are many successful products that use this model, including many banking and payroll applications, the demise of on-premise software will not occur overnight. Locally installed, Windows-based accounting software will, for the foreseeable future, dominate the small business market, and will be supplemented by online services that meet specific customer needs.

The area of software that will change is in how accountants and clients work with each other, and how both groups will interact with business management applications. Having access to the same data, the same user interface, and being able to see non-verbal cues using webcams along with video conferencing tools like Skype, GotoMeeting or NTR Support will revolutionize how we work with clients.

We’ve all heard the hype about web-based applications and services, but another technology trend that is becoming more common is the use of applications that are hosted on Windows servers in a secure data center. Thomson Reuters has offered its CS Suite of applications in a hosted environment as Virtual Office CS for some time, and CCH’s Next Generation platform offers hosted or local deployment of the applications. One big advantage of these platforms is that you can run the application locally or you can run it from the publisher’s hosting facility. Assuming you have proper backups of your data in multiple locations, you can either switch from hosted to local installation or in the event of an extended emergency (e.g. Hurricane Katrina).

In addition to these software-publisher hosted offerings, companies like Right Networks, MyOwnASP and CPAASP/InsynQ enter the market with hosting for Windows-based end-user accounting applications like Peachtree, QuickBooks and Dynamics GP. These offerings make it possible for clients to work on their accounting software from anywhere and still have their data stored in a secure hosting facility, with easily available redundant power, Internet and hardware in the event of a failure.

Many hosting companies have robust infrastructures with multiple years of experience hosting common tax applications, common accounting software applications, and productivity suites. Even if your firm has ruled out using hosting as a primary technology strategy, you should consider using hosted services in the event you lose access to your offices for an extended period of time as part of your business continuity plan.

ArrowBooks Online Accounting Software recently announced the launch of Integrated E-commerce websites. This integration syncs web-based sales transactions with ArrowBooks accounting software, making it easier for users to access the latest information and eliminating the need to enter data twice.

With businesses moving to the online world, it only makes sense to implement a system that allows users to manage their online sales efficiently. ArrowBooks Online Accounting Software does just that by providing their customers with a comprehensive online accounting package. It’s no more a hassle to maintain items on the website or even ensuring that all the item sales have been accounted for. The entire process is automated with the integration of the e-commerce site with the accounting software.

ArrowBooks delivers users with various tools and features, to tailor the E-Commerce websites to their business needs. Using the Website console module in the ArrowBooks software, customers can change the look and feel of their website – from changing the layout, wording to colors and photos etc.  Users can even set/modify the accepted methods of payment, shipping costs, sales tax and more.

Further, the integration of ArrowBooks Online Accounting software with the E-Commerce website allows users to upload items onto the website easily with the help of the inventory module. Users just need to select the items they want uploaded and the inventory module does the job for them. There’s no need to upload items to the website again. The software also manages and tracks the online sales transactions as and when they occur, making the tracking process more efficient.

ArrowBooks’ integrated E-Commerce Website provides a simple and comprehensive solution to manage an online business. This application is ideal for any business big or small and increases productivity and efficiency.

Acclivity released the latest Mac version of their small business accounting software -AccountEdge2010. This new edition of the accounting software is ideal for businesses that need web store integration. The web store called EnStore, developed by Acclivity’s Checkout partner, Sofa, enables businesses to provide their customers with a good online shopping experience. It offers users, data on the detailed tracking of item information, profitability of sales analysis and bank deposit slip printing.

Irrespective of the size of the online store, EnStore is a easy-to-use application that can be seamlessly integrated with other systems. For instance – Information related to products, images, pricing and other details can be managed in AccountEdge and integrated with EnStore. This allows users to have the latest information and enhances workflow efficiency.

Further, the pay as you go, web store allows users to customize the look and feel of their store with the help of various templates the application offers. Users can add their own pictures, descriptions and even modify the store with automatic shipping, tax rate lookup, credit card payment options and more.

Apart from the customizable features, AccountEdge 2010 also provides businesses the ability to track and manage their online inventory with ease. For instance- they can track item weight, price, tagging functionality, brand association etc. What’s more, it even lets you analyze and monitor the profitability margin of every sale with the help of Show Profit Analysis button. It offers users a fair analysis of the gross profit margin, cost of each item, cost of the entire invoice, profit analysis from an order quote and an invoice. Users even have the ability to modify the prices of items to analyze how it affects the profitability.

AccountEdge 2010 offers a plethora of tools and features to effectively manage an online store. It comes integrated with good support manuals and user guides to help customers get started. Their Auto Update feature automatically updates the software for any new updates ensuring customers have the latest features to work with.

To make it easier for you to decide on the best accounting software in the market, we have developed a Top 15 Accounting Software vendor report, which lists the top vendors, product features and more.

Last month, Intuit Inc., a business accounting solutions provider, had more than 300,000 customers stranded when a power failure shut down the company’s servers. This was perhaps a wakeup call for Intuit to consider Software as a Service.

As planned by Brad Smith, CEO at the company, Intuit will transfer more than 75% of its sales to Web-based services by 2015. Intuit will make a series of internet company acquisitions. Additionally, the company will reform operations and product features so that Intuit applications, such as for TurboTax and Quicken, will run dependably as online services.

“We don’t have the luxury of going down,” Smith says. “We are required to be available, 24/7, and we’re doing everything we can to make sure it doesn’t happen again.”

In the meantime, Intuit is making investigations into the June power outage and how it can be avoided in the future. Data centers will also be made more efficient and centralized. Smaller offices will be shut down and operations will be concentrated in an advanced, 240,000-square-foot facility built in Quincy, Washington.

According to Smith, the Intuit strategy since January 2008 has been to adapt from a desktop company to an internet company.

So far, the company provides online services to handle small business payroll and payments, manage health care costs, pay physicians, build websites, give financial advice, and process credit card charges over mobile phone. Intuit’s most conspicuous  acquisition last year was $170 million for Mint.com, a service that records, analyzes, and creates graphics on data from consumer accounts on all spending habits. The company plans on integrating some Mint.com services with its other software offerings.

Sage, a leader in accounting software, has tailored their accounting software to meet the needs of the construction industry.  Sage Timberline Enterprise is accounting software made to fulfill the unique needs of construction companies everywhere.  Sage Timberline Enterprise integrates core accounting functions with service management, job management, and an estimator estimate.

The benefits of Sage Timberline Enterprise are the newly designed process maps that allow customizable, visual representations of everyday tasks.  Sage Timberline Enterprise also features a dispatch board that helps users visually schedule service workers by assigning the appropriate technician with the right skills to perform a job.  Sage Timberline Enterprise is an all in one solution for those in the construction industry.  Other products from Sage for the construction industry are Sage Timberline Office and Sage Master Builder.