Ivan Epstein, CEO, Softline, says that the increasing reliance on computer systems by businesses of all sizes is driving fundamental change in the way accounting software is being provided to the SME sector.

More and more business owners are recognising that technology can allow for far greater control and foresight into their accounts, in turn making it easier to understand their business and exercise more efficient management of their finances.

Unless you’re acting as your own accountant, it’s more onerous to know just how profitable – or not – your business is without some form of accounting, Epstein says. “No matter what business you’re in, even if all you do is balance a cheque book, that’s still accounting. And, in this day and age, any possible competitive advantage is worth pursuing, particularly greater operational efficiency, facilitated by modern accounting methods and software.”

He says that choosing the right accounting software is a process that demands careful consideration. The product should be right for your business – it shouldn’t contain more features than you need, it should incorporate features that streamline the operation of your business and it needs to be easy to customise to your needs.

Today, no traditional software application is immune to web-based competition, so it stands to reason that adopting web application technologies and business practices is an area that local vendors and customers are sitting up and taking notice of.

The benefits of web-based accounting solutions have heightened interest in the SME sector in South Africa, but Epstein says the uptake hasn’t yet been significant. Bandwidth limitations continue to remain a big challenge in South Africa. Coupled with this, some businesses, particularly SMEs, are simply not comfortable giving their sensitive accounting data to others to manage.  On the other hand, some have found that a web-based solution may actually be more secure than their current configuration. Either way, Epstein advises business owners to investigate the issue of security in more detail if they’re exploring the benefits of web-based accounting for their business.

“I don’t predict that current pricing modules will be radically affected by the increased interest in web-based accounting solutions,” Epstein says. “The biggest lure for vendors is that web-based customers offer greater revenue security, making business more stable and predictable. Vendors can also provide better support and service in the web-based environment. Another great advantage is that they can analyse customer usage and thereby determine which parts of the application they are having difficulty with, or achieving the most benefit from.”

For customers, the biggest buy-in is the low cost of entry. Instead of paying a lot of money to implement a complex solution across the company, customers can just roll out a small test department, thereby ensuring that the risk is very low if it fails. Also, in this model of software provision, the vendor works for the buyer. As everything is securely managed at the vendor’s location, customers don’t have to rely solely on their IT department to install an application, which is particularly attractive for a smaller business.

Selecting the right accounting software is important for streamlining the financial management of your business. Having a handle on your accounting, inventory control, and the availability to generate powerful reporting are useful when meeting the challenges of today's business demands, Epstein concludes.

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