[OGo-Discuss] Accounting Apps Re: [OGo-Developer] Changes to trunk, Testing

[Adam Williams]

> > No, unfortunately not.  And I've looked! Open Source Accounting /
> > Line-Of-Business apps are seriously wanting.
> Is it possible to specify what such an application should do? :-)  

Sure, but the list ends up being rather long.  Basically, once there is
a ledger of accounts, you need AR, AP, Invoicing, probably some kind of
Point-Of-Sale, and reconciliation.  This assumes that inventory control
is entirely an external issue (unlikely).  Allot of this depends on the
size of the company;  probably REALLY small companies (a few people) can
get by with something like GNUCash,  larger companies (100+ employees)
are almost certainly going to go with a commercial solution.  The
available target for Open Source is, I think, the 25 - 100 employee
companies.

Another issue, not really a feature, is data entry.  Accounting
operations do LOTS of data entry even at fairly small companies.  Data
entry needs to be fast, efficient, and reliable - and able to keep up
with someone who has been doing ten key for decades.  In investigating
line-of-business applications I've watched users vote down "superior"
systems simply because of the data entry technique.  If it is a pain to
work with, or constantly makes them reach for the mouse, accounting
clerks or order entry people will let you know! :)

> What kind of data would need to be captured and what functionality is  
> required?

It needs to start by implementing a double entry ledger system that
supports a hierarchy of accounts.  This part I think is pretty simple
the biggest constraint is that transactions need to be forced to
balance.

> Is it supposedly difficult to get such an app right? (does it involve  
> tax laws and such?)

If the company is selling material goods (at least in the USA) then the
application must handle sales tax.  This itself is pretty complex as
each municipality, county, and state may each have their own sales tax.
If the company is selling only a one specific locale (like a
brick-n-mortar store) this isn't so bad but it the company has multiple
locations or ships items then a full implementation is pretty much
required.  With a good ledger system figuring out the taxes accumulated
to each organ of government is pretty easy,  but tallying the tax for
the sale itself requires knowing allot of information.

I don't think it is necessary to include payroll.  In the USA almost
everyone outsources most of that since it is REALLY complicated and
screwing it up can land you in hot water.

Probably the most interesting contender which I stumbled across
recently, but haven't had a change to poke at, is Quasar Accounting.
http://www.linuxcanada.com/quasar.shtml
The accounting package is GPL, but their retail/point-of-sale package is
proprietary.

> I mean adding a product and invoice table and wrapping that in a  
> tableview sounds rather trivial, but are there specific things/ 
> details which make that kind of app hard?

That sounds like a system for posting and tracking sales, not an
accounting application.  At the end of the day you need to be able to
turn over your books to a CPA or tax man in order to do things like pay
taxes, register financial statements, etc...