Tweet

Accounting Software- A Business Model

Written by: Dick Landrum

Article Overview: Business owners can have much better control of their accounting and operating software if they own the source code. Software developers can provide the control by offering the source code that includes the general accounting and the clients' unique application.

Accounting Software- A Business Model

For those who own their own businesses, I don’t have to remind you how nice it is (or would be) to be in control of your accounting and operating software. Too many times businesses are at risk of disruption when a software product is changed (“upgraded”) or, worse yet, becomes unsupported or even obsolete.

If your business has several software products that are dependent on each other, be careful to only accept upgrades when you have been assured of, and understand, the effects the changes will have on your other products.

Starting a new business? Try to be in control of as much of your software as possible.

If you are in a business or want to start a business that provides software solutions to other businesses, take heed… the above cautions are very real; preventing them can put you in a nice position to build a very successful client base with considerable mutual respect!

Consider a business plan that has worked well for us since 1983 as a provider of software solutions.
We develop software so that our clients can-

• Eliminate as many 3rd party software vendors as possible.
• Eliminate interfaces to other accounting systems.
• Be able to make any changes they desire without fear that the next release of
another software product will render their changes useless.
• Ensure that their end users don't have to know several different procedures for data
entry, reporting, sending files to taxing agencies, monthly and yearly updates, etc.
• Eliminate the need to outsource Payroll and other bookkeeping functions.
• Eliminate double and triple entry in to separate software packages.

We develop software for those who develop software systems for other industries so that-

• The general accounting function is always the same, consistent, easy to teach and learn.
• They can make the system fit any application and provide all the accounting functions
that save the end user money and time, or
• They can add new modules for unique solutions, and not have to reinvent an accounting
system or have to interface to a third party system.
• They can own the source code for accounting, invoicing, job cost, agriculture,
estimating, scheduling, dispatching, etc. and make the system fit any application while
still providing all the general accounting functions.

Whether you bring software development/maintenance in-house or develop software solutions for others, owning the source code can be most beneficial. Be certain that the source code is based on a popular database that is easy to learn. For in-house use, check to see that it is easy to find someone to hire who can maintain the system, or that there is a local developer who can make the changes you desire.

Maintenance of your own database also involves understanding and maintaining the database servers for multi-user systems.

Taking control of your accounting and operating software can take some time and effort up front, but can provide long periods of having just what you need with no danger of being disrupted by outside sources. With our older DOS based systems we still get calls from clients who haven’t contacted us in well over 12 years who want a small change. It should be everyone’s hope that their software provides well for them with as little attention, but more importantly, that they can make the changes they desire when they need them.

Next article: Software Developers- Maintain one database system containing general accounting for all applications and each of your clients’ unique applications.

Related Articles
  Choosing an Accounts System
  When to Develop Custom Software or Websites: Hire's Innovation test
  Disaster from Day One or Successful Accounting Software Implementation
  Call Accounting Software for the Budget-Conscious Manager
  Your software is only a tool

Article Tags: accounting systems, bookkeeping functions, business plan, data entry, disruption, end users, fear, general accounting, mutual respect, operating software, party software, payroll, risk, software packages, software product, software products, software solutions, software systems, software vendors, starting a new business



Related Forum Posts
Seek Venture Capital & Funding - Hello, Greetings from India. I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample. I have a basic outline for an offshore company. 1. Technology - like Microsoft Dot Net, Java, LAMP 2. Talent Team - Found Good Technology Developers. 3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects. 4. I do not have resources like funding. It is a very critical factor to me Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc. Services: Offshore Software Development Company. Offices to be located: Hyderabad, Andhra Pradesh, India and USA. Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain. Seek your further questions and help. Thank you, Best Regards, Jayapratap.
Re: Franchise 'due diligence' checklist - One of the things I focus on is this: Does the Franchise fit the Business Model you are interested in? Meaning, are you going to be doing what you want to do on a daily? For example, if you are a restaurant manager now and you hate your job because of the hours, then don't buy most food franchises. You have experience of course, so it is more comfortable, but you will basically be doing very similar duties and hours as you were before. I always go through a series of questions, answers, more questions, more answers etc... to help my clients figure out what Business Model they are most interested in, I do this before even discussing a single name with them, they tell me what the business model is and then I match them up to that type of business, explain the entire business model as best I can and then and only then do we discuss the name of the company. Too many times people come to me wanting to own "abc" name brand franchise, when they don't even understand what type of business it really is and what they will be doing every day.
The Little Man Introduction - Good Morning, This is John Hoover from Little Man Consulting. Our company has been floating along as a after thought for a few years. This year we decided to make a go of it. So far we are doing great. We are Virtual Administrators, Web Developers, Database Designers, and Software instructors. Basically, if you have someone in your office to do it, we can do it virtually. Our company was created to "Provide Big Business Resources to the Small Business". Wish me luck, I plan on revolutionizing the small business world with this!
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Patent Walk-Through - Hello everyone! My name is Alex, I'm 18 years old and I'm constantly drawing up new ideas and inventing stuff. I sketch stuff down everywhere I go and on anything I can write on. I'm a big member of our local Future Business Leaders of America chapter (FBLA). In the future I hope to work my way up to being a Venture Capitalist. I think of myself as a pretty creative person who is very motivated. Some of the ideas and inventions I come up with are pretty far out but others I consider marketable and to have great potential. Being 18, I have little to no connections and no resources. I've been surfing this site pretty frequently for the last year and have finally decided to join the forum group. Anyway, here's my question... Basically, I have no idea how to get a patent together the costs and the overall process. As of now, I think I have a great idea that, as far as I know has not, ever been done before. I'm really excited about this idea. I'm a total novice at this and am willing to learn all that I can. Any information that you can provide me with would be great. Again the main things I want to know are: 1.Overall Process. 2.How Long It Takes. 3.Costs. 4.Anything That You Think I Should Know. 5.Tips/Experiences. 6.Confidentiality. 7.Must I Make A Physical Model of My Idea? Thanks guys! -Alex


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Pure FUN of Learning & Using NLP

Selling What Sizzles vs. Delivering Real Value

Leading from Authenticity is a Beautiful Thing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.