5.3. IT - Software

Danger to your business

Computer software is a central part of many businesses’ operations. But its increased importance brings new risks. Fraud, viruses, legal challenges and simple mistakes can all have catastrophic effects on your profitability.

An effective software policy is essential, even for small businesses. This briefing outlines:

• Why you need a policy.
• How to draw up a policy to minimise your legal and commercial risks.
• How to purchase and control software.
• How to implement your policy.

Smarter accounts

Choose the right accounting software package and you will save time and money, make fewer mistakes, and obtain useful management information.

The most recent breakthrough has been in making the software easier to use - you no longer have to understand book-keeping.

This briefing explains some of the key issues to consider before you make a purchase:

• The benefits of computerising your accounts.
• How to establish the basic accounting needs of your business.
• What level of software to choose.
• What costs are involved.

This briefing should be read alongside Using accounting software, IT 3, which explains how you use accounting software to run a business.

Gaining control

Good accounting software should put you in control of your business. You can automate the tasks you have to do, including keeping records and completing statutory returns. And once the data is recorded, it will be easy for you to access and manipulate it for reports that will enable you to run your business better.

To make the most of your accounting software, you need to think through what you want it to do for you.

This briefing covers:

• How you can use accounting software.
• What you should know before you get started.
• How to get started.

See Choosing accounting software, IT 2 for information on how to select the right package.

Payments on time

Good payroll software does more than just calculate wages and print payslips. It enables you to gather information on your employment costs and to keep track of individual employees.

One of the strengths of the best packages is the range of extra modules that can be bought as add-ons. These give you the option of expanding the capability of your payroll software to cover specific tasks, such as automatic bonus calculations and BACS transfers.

This briefing tells you:

• If you are likely to benefit from using payroll software.
• The advantages and disadvantages of using payroll software.
• How to purchase suitable software.