Here I provide tips and information on what to look for with a free accounting software package, and what to avoid. I will also provide overviews and reviews of free packages on the market.

Why is the software free?

Absolutely the first question that you should ask. there are many reasons for giving away free software however an accounting system is crucial to your business and you should expect to stick with the same software for a number of years.

What you absolutely don’t want is a problem with your system and nobody to turn to. this could end up costing you way more than buying a well established package now. ask yourself where the software provider is getting their income from to enable them to stick around for a few years and support their products.

Problems do occur and they often hit unexpectedly not to mention changes to computer operating systems, legislation changes, tax changes etc…

At the very least you want to understand the data structure of the system and enquire as to how easily this can be ported to an alternate system.

Why do you want free accounting software?

Sure a price tag of $0.00 is the amount that we’d like to pay for all of our purchases however joking aside you need to ask yourself this question. There are lots of valid reasons/needs for free accounting software but this is not an area that you want to scrimp on if your only reason is saving a few bucks. a modest investment here and now can certainly pay for itself many times over and likewise a saving here could end up costing many times more.

How does the software compare to the basic or entry level versions of the major brands?

A lot of the major brands offer entry-level products for around $100 or less. While these aren’t free they’re pretty close and you have the knowledge and security of being with an organisation that is around for the long-term.

Decide what you absolutely need as a minimum from your package

Examples might be:

• “I need a fully integrated sales ledger so that i can track my credit sales, my payment terms, my customer activity, my aged debt and my cashflow”. In this case taking a package without a sales ledger is nonsensical despite the free price tag.
• Other areas to look at when evaluating free accounting software
• Support/training – is there any? Nothing is more frustrating than spending hours trying to figure out how to do something, even more so when you have a business to run.
• Age of business – how long has the software provider been around? Without wanting to state the obvious; the longer the better.
• Updates – are updates free of charge and are they provided on a regular basis? Nobody wants to be suckered into taking a free product only to find it being rendered useless in 3 months without you paying a hefty fee.