Small Business Software

Most businesses acquire standard desktop software packages containing presentation-, word processing-, email- and spreadsheet programs when they initially buy their computer equipment. These software packages are limited in terms of their functionality though and generally not designed to act as business applications. For this reason, you will need to consider which small business software applications you should use to support your business soon after - if not before - opening your doors to business.

Technology is useful in many ways: Processing business transactions, inventory recordkeeping and control, preparing financial statements, financial analysis, correspondence, and many more. It has the ability to offer you intelligence on your operation as and when you need it, meaning that you can make relevant decisions in a timely manner.

As a result, the first type of small business software that logically comes to mind is accounting software. Accounting software is useful for record keeping, for recording transactions in a journal and maintaining your subsidiary ledgers. Small business software for accounting normally contains modules for cash, accounts receivable, inventory, payroll, accounts payable and fixed assets.

Related to these, are modules specifically designed for tax preparation and planning, as well as modules for financial analysis and planning. The latter aids in managing your cash and calculates the possible consequences of changes in business policy i.e. increasing selling price or investing funds.

To complement the small business software you are already using for accounting purposes, you could use your spreadsheet program. Spreadsheets are perfect for preparing forecasts and budgets, performing cash flow analysis and conducting "what-if" analysis. "What-if" analysis are used when testing assumptions, such as the impact of change in sales on overall profitability.

Consider buying pre-packaged (shrink-wrap), general-purpose small business software instead of proprietary software. Proprietary small business software will need customization, which could become a costly and disruptive affair. Pre-packaged small business software is considerably cheaper, comes in a wide variety and caters for just about any small business' needs.