While an off-the-shelf mainstream accounting program may work for a sole proprietorship or small home-based business, larger firms may be better off with semi-custom or proprietary enterprise management (ERP) solutions designed to integrate with existing supply chain, human resources management, customer relationship management, and other systems to get a more seamless upgrade. Or perhaps a dedicated accounting / financial management package is all you need
to run your medium-sized business.

Assessing Your Software Needs
Although requirements can vary by industry, accounting software packages universally provide a means to track income and expenses and to generate reports. Before you start looking at software, consider what you want from your accounting system. Products vary in their capabilities, from simple checkbooks and cash-accounting systems to those that handle complex financial management, tax accounting, payroll, investments, job costing and inventory management. Many systems offer the option to purchase the modules that you need now and buy additional ones later when needed. This may make changing as your business grows easier on employees already familiar with your existing system.

Accounting software packages can provide the following business tools:

• Management utilities
  • Generate balance sheets and profit and loss statements
  • Track accounts receivable/payable
  • Support job costing
• Quarterly federal and state tax payment estimation
• Income tax preparation
• Sales tax preparation
• Payroll computation
  • Calculate payroll checks
  • Compute payroll deposits
  • Prepare quarterly and year-end reports
• Inventory management
  • Identify stock on-hand
  • Generate purchase orders
  • Compute cost-of-goods-sold

  Some of the above features are standard on all small- to mid-sized accounting software programs. Others are part of extensive ERP systems. Systems created especially for your industry, if you're in construction or manufacturing for example, may provide the best solution.