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

Accounting Today: Another Great Review for AFP

Accounting Today: Another Great Review for AFP!
By Ted Needleman
(Accounting Today, June 2006 Reproduced with permission)
Accounting for Practitioners V. 4 Gold

Over the years, it was common to find complex applications "programmed" using various tools such as a database or spreadsheet. Numerous accounting applications were developed in dBase II and Lotus 1-2-3. Over the years, a simple trial balance spreadsheet was a common sight in many accounting practices, as this was a great way to develop beginning spreadsheet skills.

The more recent releases of Microsoft Excel provide a rich development environment, with a sophisticated Macro language, built-in graphics and other comprehensive analysis features such as pivot tables.

The original version of the Microsoft Excel-based Accounting for Practitioners was introduced years ago, and over the years it has blossomed into a complete and sophisticated trial balance application targeted primarily towards small to midsized practices. While Excel is primarily a single-user application, AFP4 is available in three editions, with the "Light" edition a single-user application, and the Standard and Gold Editions licensed for five and 10 users, respectively. All editions of AFP require that you already have a copy (or copies) of Excel. The application works with all versions of Excel since Excel 97.

The Standard and Gold Editions of AFP4, while licensed for multiple users, also add features to the mix. The Standard Edition provides a full set of workpapers, including lead sheets, ratio analysis, debt amortization schedules, and Excel's excellent import and export capability, which makes it very easy to transfer in figures from other accounting applications and export the finished trial balance to an application such as tax prep.

The Gold Edition includes the features of the Standard Edition and adds consolidations, trend analysis, budgeting, document imaging and management, and PDF file capability.

Installing AFP4 is a snap, and client set-up is fast and easy. The software comes with a well-written manual, and each worksheet contains instructions at the top of the page on how to use the specific sheet. You may have to change your Excel security settings to permit AFP4 to install the necessary macros, but once this is accomplished, tabs on the individual worksheets direct you to the proper data entry forms, workpapers and reports.

If you have purchased the Standard or Gold Edition, a capital asset worksheet will calculate straight-line and declining balance depreciation for a large number of assets, and there are also amortization schedules available for up to 26 loans payable. If you need more capability than this for your clients, you are probably best off adding a fixed asset package to your repertoire.

AFP4 will also generate an engagement letter for compilations and reviews, based on the type of engagement and basis of accounting. This report and standard representation letters are transferred to Word where you can modify them and print them out. Creating a finished report document is further simplified by the library of notes that can be modified and added to the report or financials.

It would be easy to dismiss AFP4 as a lightweight because of its Excel underpinnings. That would be a mistake, as very few accountants have either the time or expertise with Excel needed to create as sophisticated an application as AFP4.

While you may need to launch Excel to use AFP4, you'll be pleasantly surprised at how robust and feature-rich this trial balance application is. If you feel adventurous, and have the expertise, you can access the underlying worksheets to create your own custom and ad hoc reports and graphs.

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