Pros and Cons of Free Accounting Software

If you search on the internet, you can find many free accounting packages. These range between:

• Totally free accounting software
• Accounting packages which are free for a limited period
• Packages which are free but require you to use other non-free software or services

Examples of each type of package are:-

1. Totally free accounting package - GnuCash.
2. Free trial period - MYOB.
3. Free with other purchases - Microsoft Accounting Express - you need to purchase Microsoft Office 2007.

The following pros apply to free accounting software:-

1. The software is free, so startup costs are reduced.
2. Since the software is free you can evaluate copies at your leisure and there is less financial cost/ loss in moving to a different package.
3. Free software is often open source. This means it is possible to modify the source to suit your specific needs if desired.
   

The following cons apply to free accounting software or, at least, the following points need to be considered when thinking about using free software:-

1. Although the purchase cost of the software is free, is support free? If you experience problems with the software who will you ask for help? Often, third-party companies will offer support but you will need to find out how much they charge.
2. The software may lack key features, or be crippled in some way, to encourage you to purchase the non-free version.
3. What future or development roadmap exists for the software? If your needs change in the future, will there be an upgrade route?
4. Since the software is free, what guarantees do you have that it will continue to be developed?

In some ways, the best accounting software packages are those which have a free trial period. During the trial you can evaluate the features provided by the software with next to no financial outlay. Ideally the trial period should allow you one month's use or more, allowing you enough time to do one month's invoicing or bookkeeping. If you are considering using free accounting software, take the time to do your research online and find out other people's experience with the software.