Web-Enabled Accounting Software

Over the past five years or so, accounting software publishers have worked hard to web-enable their products in a wide variety of ways. Too often these "web-enabling features" are referred to as "e" features, "e-commerce" features, "web features" or some other naming convention. However, this has only served to confuse many of us. To help straighten this out, I have summarized the various ways in which accounting software applications have been web-enabled, and applied terminology to help us better understand and discuss these concepts with less confusion.

Carlton's List of Web-Enabling Features

Web Stores
Supply Chain
Remote Access
Browser Based Menus & Screens
Web-based Requisitions
Web-based Financial Statements
E-Mail Reporting
Web-based Executive Dashboards
Web-based Time Sheets
Web-based Expense Reports
Web-based Invoicing
Web-based Contact Management & CRM
Electronic Payments & Fund Transfers
Web-based Support & Help
Web Links
Web-based Accounting

Each of these concepts is discussed briefly below:

Web Stores - The accounting software application provides a module which allows the user to create a web catalog or web store for selling goods and services via the internet. Typically, the web store's item descriptions, pricing, quantities on hand, pictures, etc are linked directly to the user's accounting system. Typically orders entered into the web store automatically flow to the user's accounting system for processing, either via a download or e-mail process. Typically, the web store provides shopping cart functionality which allows the shopper to gather their items and then pay for them all at once. Typically the web store includes a merchant account for accepting credit cards. Some of the best web stores are provided by Peachtree Complete Accounting, BusinessVision 32, ACCPAC eTransact, MAS 90 Store Applet, and Microsoft Great Plains e-commerce.

Supply Chain - The accounting software application provides functionality that allows trusted customers and vendors to tie their accounting systems together so that purchase orders and invoices flow electronically  from one system to the other without human intervention. This process results in an enormous savings in labor costs, dramatically speeds up the replenishment process, and dramatically reduces errors. Supply chain technologies vary widely but usually involve an intermediary who collects the data from one accounting software system and translates it on the fly before sending it to the next accounting system. This process has historically been known as EDI (electronic data interchange). Microsoft BizTalk servers are examples of intermediary devices which read the information from one accounting system and translate the data into a readable form for the next accounting system. Perhaps one day someone will create standards that will allow differing accounting systems to communicate directly with one another without an intermediary.

Remote Access - Many technologies exist that allow users in remote locations (such as a hotel room or the employee's home kitchen) to log into their accounting systems in order to enter data or produce reports. In years past, remote access was accomplished only through expensive dedicated phone lines or long distance phone calls; however today, the internet provides this communication channel very effectively at affordable prices. The benefits of remote access are many. For example, remote sales persons can enter orders while on the road, remote offices can share the same accounting system, executives can pull up reports from afar, and employees can work from home. Examples of popular remote access technologies include Citrix, pcAnywhere, and Microsoft Terminal Services Advanced Client.

Browser Based Menus & User Screens - Some accounting software products have adopted browser based menus and user screens. In these systems, the user views the entire accounting system through a browser, and each menu option is really just a hyperlink to another browser-based user screen. The advantage is that the accounting system need not be installed on the user's computer - only a browser is needed. This is the ultimate thin client architecture. Another advantage is that the system can be accessed locally through a local area network, or globally through the internet. Some accounting software packages such as Oracle Small Business, QuickBooks for the Web, and Intacct have adopted browser based systems which are accessible only through the Internet. Other accounting software packages such as Syspro's Impact Encore have deployed both traditional menus and user screens and browser-based menus so that the end user can choose the method that works best for them. 

Web-based Requisitions - Some accounting software packages provide employee requisitioning modules to make it easy for employees to requisition supplies such as printer paper and toner cartridges. To make this process available to all employees, requisitioning systems are usually deployed as web-based solutions; otherwise only employees with access to the accounting system could order supplies. Typically these systems have built-in business rules which automatically route requisitions appropriately depending on established criteria. For example, Nancy's order for supplies is automatically fulfilled if the total order is less than $50; however if more than that, her order is first routed to her supervisor for approval before further processing. 

Web-based Human Resources - Some accounting software applications provide the employees with the ability to access their personal records in order to maintain their contact information, view their employee performance records, update their resume, shop for another job internally, or move money around in their 401K account. These type of systems have allowed companies to dramatically reduce the human resources labor force. To make this process available to all employees, human resource systems are usually deployed as web-based solutions; other wise only employees with access to the accounting system would have access. 

Web-based Financial Statements - Some accounting systems allow users to read financial statements and reports through the internet via password protection. For example, through the eView module, Microsoft Great Plains Dynamics and eEnterprise allow users to access the financial statements provided they have the correct login name and password account. In this manner, the company's financial information is available to all appropriate people at any time of day or night where ever they may been in the world.

E-Mail Reporting - Some accounting software applications can be set up to automatically send selected financial statements and reports through e-mail to selected users or groups of users at regularly scheduled intervals. For example, the salespersons may be set up to receive the weekly sales and commissions reports while the accounts receivable clerk may automatically receive an aged receivables report each day. Some products even allow the user to establish pre-defined criteria in which e-mailed reports are sent as they are triggered by the system. For example, a report may be e-mailed to the appropriate persons in the event that the cash balance drops below $100,000, the gross margin falls below 25%, or when the number of "Deluxe Refrigerators" on hand falls below four. Examples of products that do a good job of e-mail reporting are ACCPAC ProSeries, E by Epicor, and FRx Financial Reporting.  

Web-based Executive Dashboards - Similar to web-based financial reporting, web-based dashboards provide executives with an executive summary view of key company indicators. For example, a single screen may summarize the company's cash balance, the AR aging, the turns in inventory, and other key financial data. A good example of this is seem in the MAS 500 eExecutive. 

Web-based Time Sheets - Some accounting software products have deployed their time sheet data entry screens to through the web. This allows remotely located employees to enter their time through a simple web browser based on the correct login ID and password. This makes it easy access for an employee to enter time sheet data entry from virtually anywhere - only a web browser is needed. In this manner, an employee could travel abroad without a computer, and still enter their time daily through at a cyber cafe located in England or France. Microsoft Solomon IV is a good example of an accounting software product that has perfected this capability with the Solomon Desktop module.

Web-based Expense Reports - Similar to web-based time sheets, some accounting software products have deployed their expense report data entry screens to through the web. This allows remotely located employees to enter their expenses through a simple web browser based on the correct login ID and password. This makes it easy access for an employee to enter expense report data entry from virtually anywhere - only a web browser is needed. In this manner, an employee could travel abroad without a computer, and still enter their expenses daily through at a European cyber cafe. Microsoft Solomon IV is a good example of an accounting software product that has perfected this capability with the Solomon Desktop module.

Web-based Invoicing - Some accounting systems allow you to send electronic invoices rather than paper invoices through regular e-mail. he advantages are many - faster delivery of invoices, less labor involved, reduced cost of supplies, etc. Examples of products that do a good job with this are QuickBooks for the Web and ACCPAC simply Accounting.

Web-based Contact Management & CRM - Some accounting software packages provide contact management of CRM modules to make it easy and streamlined for sales persons and others to service customers. To make this process available to all employees, these systems are usually deployed as web-based solutions; other wise only employees with access to the accounting system would have access. Typically these systems can be synchronized with other applications such as Outlook and wireless devices such as the Palm Pilot or Compaq iPAQ.

Electronic Payments & Fund Transfers - Many applications make it possible for the user to send electronic payments or transfer funds electronically. For example, QuickBooks Pro allows the user to easily send a check electronically simply by checking the electronic payment box on the check form. As another example, BusinessWorks makes it easy to transfer employee paychecks directly into the employee's bank account, rather than endure the older, slower method of printing and distributing a paper check. 

Web-based Support & Help - Some accounting packages now offer hyperlinks to web sites which provide answers to frequently asked questions, patches and drivers available for download, on-line tutorials to help you learn how to use the system, and live chat rooms where support personnel stand ready t answer your questions.

Web Links - Some accounting software applications have figured out interesting ways to intermingle web services with the accounting software application. For example, Navision Attain provides a quick button in the posted customer orders screen which pops up a browser and automatically submits the UPS or FedEx tracking number to the appropriate shipment tracking web sites. Seconds after clicking the button, the browser provides a quick status of the shipment. In the order entry screen, Navision Attain links to D&B credit report service so that companies can quickly check the credit rating of prospective customers with the click of a button. 

Web-Based Accounting - Some accounting software applications have been deployed as web based systems. For example, ePeachtree, QuickBooks for the Web, oracle Small Business Manager, and Intacct Accounting are web-based accounting systems. To use these systems, you need only have a browser. Simply log in , enter the correct password, and start using the system. There are many benefits to web-based accounting, and only a couple of  drawbacks - speed being the most obvious drawback. I think that web-based accounting holds much promise. 

Conclusion:

Accounting software publishers continue to come up with many fascinating ways to web-enable their products, I am delighted by these advancements. However, all of these methods have generally been clumped together and referred to as e-commerce solutions. The industry needs to do a better job of properly naming and identifying these solutions so that we all understand the wide array of solutions. Perhaps this summary helps.

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