Architekwiki
  • Home
  • WIKI
  • Start Here
  • Resources
  • Other
    • Reading List
    • Ochre >
      • Ochre
      • Ochre KB
      • Ochre FAQs
      • Ochre Help
    • Details
    • The 3 Aspects
    • About
    • Subscription FAQs
    • Terms of Use
  • Subscribe
  • Home
  • WIKI
  • Start Here
  • Resources
  • Other
    • Reading List
    • Ochre >
      • Ochre
      • Ochre KB
      • Ochre FAQs
      • Ochre Help
    • Details
    • The 3 Aspects
    • About
    • Subscription FAQs
    • Terms of Use
  • Subscribe

Architekwiki

A Resource For Architects
Click here to get good stuff in your inbox

Small Firm Accounting - Part 5 - Software Criteria

3/23/2013

 
Software Criteria
Accounting software becomes a good idea at some point for every firm. Creating and maintaining a series of spreadsheets to record invoicing and bill paying takes time, but is free. When time becomes more valuable than 'free', you are ready to take the next step - bookkeeping software. As a design firm you will need certain features. Here is what to look for.

Invoicing that let's you structure invoices as hourly, lump sum, or percentage of construction cost. The ability to use a combination of invoice styles is a plus, but may not be critical if you only use one type of billing.

Variable billing rates. We charge different rates for the same person depending on whether it is a few hours of consulting (higher), or an hourly rate for all of basic services (lower), or for additional services (in between). If you can't vary these rates by project, then you may have to reset the rate in the system between each invoice.

Sales Tax set-up in billing. Although we are not required (yet) to charge sales tax on services, we use this feature to charge a 'tax' of 3% for incidental in-house expenses. This is much easier than tracking plots, photocopies, postage, local mileage and billing them as reimbursable expenses.

Time entry system that can record whose time, which project and what task in addition to the number of hours.

Expense recording that includes which project, the expense category, a description, which vendor, and the ability to bill the expense to the client with markup. Ideally this last criteria places the expense on the invoice too.

Distinguishing between paid and unpaid expenses lets you manage your accounts payable.

Importing of expenses and bank entries. This can be a big time-saver and eliminates typos.

Running reports that include profit and loss at a minimum, but the more the better. Others that come in handy are Trial Balance, Balance Sheet, Expense Detail, Project Detail, Time Detail, and Client Listing.

Integration with other applications. Basecamp is an example. Many bookkeeping services integrate with Basecamp and can import clients and time kept in the Basecamp system.

Online payments supported. You can get paid faster, if your invoicing system can accept PayPal or similar payment services.

Team-users so contract labor providers can enter time directly. Besides each employee being able to enter his own time in the system, it is nice to have any contract employees do the same.

Accountant access means that you can set up your accountant to review your books online and make the occasional comment or correction.

These are the main bookkeeping tasks that you would need or in some cases want. Payroll is not mentioned here because the complexity of doing your own payroll requires more manpower than you can justify until the size of your staff grows to over 25 in my opinion. Even then a payroll service makes everything easier. 

Next Up: Bookkeeping Software Comparison

Here are links to the other Parts:
Part 1 - Invoicing
Part 2 - Paying Bills
Part 3 - A Simple System
Part 4 - Other Accounting Issues
Part 5 - Software Criteria
Part 6 - Software Comparison

Comments are closed.
    Resources

    Start Here

    YouTube Channel

    Join The Mailing List

    Picture

    Terms of Use
    Your use of Architekwiki is implicit agreement with the 
    ​
    Terms of Use.
    Thank You for your donation

    x
    Get Good Stuff in Your Inbox
    Picture
    Subscribe

    RSS Feed


    Archives

    January 2023
    November 2022
    October 2022
    July 2022
    June 2022
    April 2022
    October 2021
    September 2021
    August 2021
    June 2021
    May 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012

    Categories

    All
    Business Development
    Business Management
    Design
    Detail
    Miscellaneous
    Project Management
    Resources

Picture

Picture
VISIT ARCHITEKWIKI'S RESOURCES
​
START HERE
ABOUT
SIGN UP
TERMS OF USE
Architekwiki | Architect's Resource | Greater Cincinnati 
© 2012-2022   Architekwiki​