CHOOSING A COMPUTER ACCOUNTING PROGRAM

The Computer & the Accountant
By Bruce J. Blanding

The preceding chapters have discussed in some detail the need for a good recordskeeping system and the essential elements it should contain. While there is no alternative to maintaining a good records-keeping system, there are two sources of help that can prove to be extremely valuable.

• With the aid of a computer, the burden of maintaining a records- keeping system can be significantly reduced.
• And with theassistance of a professional accountant, the records can become more meaningful and useful to the owner/manager.

Computers
The keeping of records was originally an entirely manual process. The tools involved in the days of Bob Cratchitt and Mr. Scrooge consisted of a quill pen and paper. In more recent years, these tools were replaced by others like the typewriter.

Most people over 30 learned to type on a manual typewriter. These were slowly replaced by electric typewriters that were a little faster (once you stopped reaching for the carriage return). Now the electronic typewriters and word processors are demonstrating capabilities that are astounding.

So, too, the evolution of the abacus and pegboard to the adding machine and to the computer has been an amazing progression. Even within the relatively short period of time the computer has been in existence, there have been dramatic changes. Microcomputers on the market today are capable of storing and processing more information than the largest early computers. And they are small enough to sit on the top of a desk instead of filling an entire room.

Feasibility
When designing or improving a recordskeeping system, an important consideration is the tools that will be used and their relative cost and utility. In evaluating the feasibility of using a microcomputer in a business operation, a number of questions need to be answered.

One of the primary concerns is the "cost" of a microcomputer. Cost considerations should include the actual cost of the equipment itself (and related software); costs related to operation and maintenance; and costs of training staff to use the equipment properly.

While cost is always an important consideration, another, equally important, concern is utility. What the microcomputer can do is a key question. The handling of more information is useful but only if the information is used.

Also, consider the element of time. If the use of a microcomputer can result in less time spent on the recordskeeping process and/or gathering information more quickly, then the utility of the microcomputer will be greater.

System Considerations
If the decision is made to use a microcomputer in a business, a number of system considerations are necessary in selecting a particular brand or model of equipment. There are many books to help you make your selection. Visit your public library or a bookstore and choose several to read. A small investment in a book or two can prevent a much larger investment in the wrong computer and software for your business. The SBA Business Development Pamphlet MA 2.027, "How to Get Started with a Small Business Computer," will also help you ask the right questions.

Accountants
The professional expertise of an accountant can be an important element contributing to the success of most businesses. The advice and counsel of an accountant should be sought and followed by the owner/manager to improve the operation of the business.

Selection
The selection of the right accountant for the business is an important step toward success. When making this decision, the owner/manager should seek an individual or firm with a good reputation. It may be advisable to ask other owner/managers in the community to make recommendations and/or ask the accountant for client references.

The experience and skill of an accountant are obviously important. Find out how long the accountant has been in business and the level of training possessed. If a person is a C.P.A. (Certified Public Accountant), that generally means that he or she has completed at least a bachelor's degree with an emphasis in accounting, practiced as a public accountant for several years, and successfully passed a rigorous professional accounting examination.

CHOOSING A COMPUTER ACCOUNTING PROGRAM