Accounting Software

Accounting programs change continuously. Every year different versions and releases are available to the public of many different versions of software. This is not just in the accounting field, this is in all the fields of software. So, releasing a new piece of software is like naming a star in another galaxy and telling everyone to look for it. It gets lost in the mix of all the other stars. New software gets lost just as easy. Microsoft owns a major portion of the computer software industry with Microsoft Windows, Vista, Office, Explorer, and many more programs. So, when they name their star, it is a little bit easier for everyone to find it because it's usually right next to the star that is named Windows.
In 2006, Microsoft released their version of accounting software. Not only is this software being hailed as extremely easy to use and user friendly, it is free. There are free downloads all over the Internet so that when Microsoft Office 2007 is released, people will buy the version with the accounting software on it. This paper will research the different aspects of the program, how it compares to industry leaders, problems that will arise, and the future of accounting software.

Microsoft's accounting software, Microsoft Accounting 2007, boasts that it is the easiest to use. They are targeting people that do not want to be calling their CPA's every other day with new questions on how to input a check or receive a bill. "Microsoft Office Accounting 2007 installs easily, without the help of Information Technology professionals. Using the Company Setup, you will be managing your business with Office Accounting 2007 in less than an hour" (Microsoft, 2006). It is very important to some people that they have control over their own business financially and relying on a CPA gives some of that control away. This is one of Microsoft's biggest target customers.
Although QuickBooks and Peachtree allow you to import and export information and share information with Microsoft Office products such as Excel, sometimes it requires much more work than expected. Microsoft is using this as a key selling point for their accounting software. "Share information with other Office programs, such as Microsoft Office Word 2003, Microsoft Office Excel 2003, Microsoft Office Access 2003, and Microsoft Office Outlook 2003 with Business Contact Manager Update, helping your company save time, reduce errors, and be more productive" (Microsoft Corporation, 2006). It will be much easier to share information and swap information back and forth with Microsoft's product.

eBay has swept the nation as a work at home business. Many people are finding out that they actually have to track their sales and pay sales tax. One of Microsoft's accounting software perks is that is works extremely well with eBay. It is easy to track sales tax, invoices, and much more. "You can list items, upload and manage pictures, and track activity in real-time. You can also download and process orders, track eBay sales and fees, and process PayPal transactions automatically" (Microsoft Office, 2006). This will be a major bonus for people that want to take care of their eBay business better.

One problem that Microsoft has with their accounting software is that it does not manage payroll as well as QuickBooks or Peachtree. This is a major issue because most businesses have employees that they want to pay and not have to worry every week if it was right or wrong. "Payroll clunky unless you use ADP for processing. Supports fewer banks than QuickBooks. Too few customized reports" (Yakal, 2006). QuickBooks and Peachtree are obviously more organized for the larger business and can handle it without a problem. For single S Corporations that have one owner and no employees will most certainly be a target customer for Microsoft's accounting software.
"The explosion of computing power and dramatic reductions in hardware costs that have resulted from the development of the microprocessor have had interesting implications for the role of users in the development of the traded software industry" (Mowery, 1996). Accounting software will continue to change year after year with many new companies introducing their version of the software. The bottom line is that each accounting software will have its pros and cons. It will take some time to do the necessary research to make sure that you are purchasing the right software for yourself and your business. QuickBooks will remain a leader for years to come with middle sized businesses. Peachtree will continue to be a leader in manufacturing businesses because that is the type of data that it handles yet. Maybe, in the next coming years, Microsoft Accounting will become a leader for small businesses and work at home businesses.

Each software company will continue to strive to satisfy their customers and adapt the software to the wants of the clients. In this process, it is extremely possible that each software firm will begin to focus on one certain type of customer. QuickBooks has many different versions of software for each different size company. In the coming years if Microsoft Accounting is a success, QuickBooks may not concentrate on the small businesses with no employees and work at home businesses. Microsoft may become the leader with simple facts such as pricing and ability to use without consulting a CPA constantly. It will be very interesting to see exactly where the software industry ends up in five years.

References

Microsoft, (2006). Connect. Retrieved November 25, 2006, from Microsoft Office 2007 Web site: https://connect.microsoft.com/OfficeAccountingBeta

Microsoft Corporation, (2006). Microsoft Small Business Center. Retrieved November 25, 2006, from Microsoft Small Business Accounting Web site: http://www.microsoft.com/smallbusiness/products/office/accounting/detail.mspx

Microsoft Office, (2006). Microsoft Office Online. Retrieved November 25, 2006, from Microsoft Office Accounting Professional 2007 Web site: http://office.microsoft.com/en-us/accounting/FX100518171033.aspx

Mowery, D (1996). The International Computer Software Industry. New York, New York: Oxford.

Yakal, Kathy (2006, Oct 6). Microsoft Office Accounting 2007 (beta). PC Magazine, Retrieved November 25, 2006, from http://www.pcmag.com/article2/0,1759,2025376,00.asp