Financial statement software, Excel based, AFP, Accounting for practitioners, Accounting for professionals.

Accounting Today: A suggestion for Microsoft!

Accounting Today: A suggestion for Microsoft!
By Ted Needleman
(Accounting Today, June 2007 Reproduced with permission)
Accounting for Practitioners V. 5 Gold

It would be easy to dismiss Accounting for Practitioners as just another set of spreadsheets - but it would also be an error. Yes, AFP5 is based on Excel, and does require a copy of Excel (97 or later) to run. At the same time, many applications over the years have been developed using a different application as the development platform. Many of the original accounting systems for PCs were developed in dBase II, and even today, applications using Microsoft Access or SQL Server as the database component are common.

Given the depth of features available in the most recent editions of Excel, including macros, pivot tables and even charting capabilities, it's a wonder that there aren't more applications programmed in it. Having AFP5 programmed in Excel adds another advantage. If you are experienced enough in Excel, you can add your own custom features and reports to the system. Of course, you could also totally screw up the application as well, so making alterations is not for the faint of heart.

AFP has been available for years, and each year gains new capabilities. For 2007, it has added client invoicing to the client set-up worksheet, and an option to hide or unhide all features relating to client write-ups can be specified when the engagement type is specified (so that different staff members can have different amounts of access). The ability to create a locked file is also new, and can be a useful adjunct in an audit or to meet SOX requirements. Expanded leadsheets, containing up to five years of balances for each account, are another new feature.

The application is targeted to small and midsized practitioners, and is available in several versions, from Light through Standard and the Gold edition we reviewed. Each step up adds features and users. The Light edition is a single-user version, Standard can support up to five users, and Gold up to 15 users. Of course, you'll need to have a copy of Excel for each user (or a multi-user version of Office).

In addition to supporting multiple users, the Standard and Gold editions also add features. The Standard edition provides leadsheets, ratio analysis and amortization schedules, and can make use of Excel's import and export features. At the time we were performing the review, Pendock Mallorn was in the process of creating a bridge between AFP and three major tax prep packages (Lacerte, ProSystem fx and Creative Solutions). This will make it easier to get the results of AFP into a tax prep package.

The Gold edition that we reviewed has document imaging and management, the ability to produce a PDF file as output, budgeting, consolidations, and trend analysis. All versions can generate engagement letters, and a library of notes, which can be edited and added to the financials, is also included.

We had no trouble installing the software, setting up clients, or using it once installed, though you may have to alter some Excel security settings to permit it to run the necessary macros. There is a well-thought-out manual with the software, and each worksheet also contains instructions on how to use that particular worksheet.

Microsoft often touts the capabilities of Excel, especially to the accounting and financial community. If they really wanted to show how robust and capable it was, they would distribute a copy of AFP5 along with the Office application. This trial balance software really shows off what you can accomplish with Excel.

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