Software
(Part 1)
December 15, 2004
Q: My sister and I run a design business. We use QuickBooks for most of our business needs, but the thing is, we are not sure what else we should be using. We don't know what we don't know. -- Leslie, New Jersey
Part 1 of 2
A: Your question reminds me of one of
my favorite Dave Barry quotes: "Buying the right computer and getting it to work
properly is no more complicated than building a nuclear reactor from wristwatch
parts in a darkened room using only your teeth."
Yes, I sympathize. The point of software is to make your business more
effective. It is supposed to save you time and make things run more smoothly,
although we all know that is not always the case. What I would like to do this
week and next is to give you an idea of what software your small business really
needs and the options available. Of course it would be impossible to analyze
every product available. What I want to do instead is give you an idea about
which products are the market leaders and how these leaders compare.
OFFICE SUITES: A good office suite allows you to create documents and
spreadsheets, produce marketing materials, manage email and contacts, and much
more. As your office suite usually becomes your basic, essential daily tool for
organizing and running your business, this is not a place to skimp.
•Microsoft Office Small Business Edition: Office Small Business is a
bundle of essential programs: Word (word processing), Excel (spreadsheets),
Outlook (contacts, calendar, and email), and Publisher (graphics.) It also now
comes with PowerPoint (presentations), and a new product called Business Contact
Manager which allows you to track leads.
•Corel WordPerfect Office: This program comes with WordPerfect (word
processing), Quattro Pro (spreadsheets), Corel Presentations (presentations) and
Corel Central (appointments and email). The question really is whether you want
to work in a Microsoft environment or a Corel environment.
•Microsoft Works: This is a program designed for home and student use
since most businesses will need Excel and PowerPoint, and Works does not come
with those. However, for a small home-based business, Works may do the trick,
and it's hard to beat the price (about $100.)
CONTACT MANAGEMENT SOFTWARE: Contact management software is intended to
keep track of clients, leads and prospects and help you turn those leads into
customers. It can really help the right kind of small business.
•ACT!: Like other similar programs, ACT (which has been around for quite
some time) allows you to manage contact information in one place, including
name, business name, phone numbers, addresses, etc.; manage leads, customers,
and vendors; track each relationship; and create sales forecasting models.
•Goldmine: Another granddaddy in this field, Goldmine is a popular
choice. Its interface is similar to Microsoft Outlook, with taskbar and menu
options, including the ability to create custom taskbars. The program easily
integrates with Outlook, Microsoft Exchange, Lotus Notes, and Lotus CC:Mail.
GoldMine's contact management tools are powerful.
•Microsoft Business Contact Manager: As mentioned, BCM allows you to
manage your customer and sales opportunities very efficiently.
ACCOUNTING SOFTWARE: A good accounting software program is probably a
must for a small business with employees. If your small business is just you,
you can probably get by with a basic money management program like Quicken. But
if your business is bigger, or is going to get bigger, then a program like the
ones listed below is required.
All of these programs offer similar tools - budgeting, accounts receivable
management, payroll, inventory control, and so on. The key then is to find a
program that offers the extra bells and whistles you want and the functionality
you like.
•QuickBooks: QuickBooks is the standard in the field. It has an
easy-to-use, intuitive interface and powerful tools which should please both the
new and seasoned entrepreneur alike. Sure it handles all of your basic
accounting needs, but it also has more sophisticated functions like loan
management, cash flow forecasting, tracking of fixed assets, and vehicle mileage
tracking.
•Peachtree Complete Accounting: Peachtree is another solid choice. It is
especially good at handling e-commerce, and has a host of usable financial
features. Some of the best options are the inventory control function that lets
you track product based on size or color, and the Daily Register Report, which
is a snapshot of your daily activity.
•MYOB Plus: This is a simpler, less expensive program which does not
offer advanced options like cash flow projections. The newer versions of this
product allow you to process credit card payments and direct deposit paychecks
into employee accounts.
•Simply Accounting: This program is easy to use and inexpensive. It is
good for the small business that has basic accounting needs and has a tight
budget.
Next week: Looking at business planning, anti-virus, and e-commerce software.
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Today's tip: How do you know where to find the next great opportunity? As
hockey great Wayne Gretzky once said, "Go to where the puck is going, not where
it is."
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