Accounting Systems

Unless you are selling some very highly priced custom-made software and just sending out the odd invoice each month, you really need accounting software. It more than pays for itself by speeding up the computation of wages and invoice dispatch and shortening the time it takes to produce statutory tax returns such as VAT/TVA in Europe and state tax in the United States.

A good accounting package will allow you to customize invoices to your requirements and deal with any issues specific to your organization. It often speeds things up to no end if you use the same accounts software as your accountants. Then data can be transmitted in real time. I strongly recommend that you get your accounts software up and running long before your software hits the streets. This will give you time to get to know it and record all the money you have spent before then.

One of the things a good accounting system will also tell you is whether you are funding your customers. If they aren't paying you on time, you certainly are. Most firms, especially the smaller ones, have no idea, but your accounts software should be able to print this out in an instant. Presuming you are working on 30 days' credit, it will list money outstanding by time: 3 months plus, 3 months, 1 month, and outstanding but not yet overdue. It is good practice to examine the debtor list each week and decide what action should be taken.

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