How Often Should I Update my Accounting Software?

I have found that I am asked quite often if it’s really necessary to update your accounting software with every update from the software publisher.  My response is that it depends on your software so here are my thoughts.

QuickBooks Products – These products have an annual update that is generally available in the Fall. Below I have discussed each product separetly.   

  • QuickBooks Enterprise – This software can be purchased once and then the customer pays an annual fee to keep the software current.  If you don’t pay the annual fee you will have to re-purchase the software at a later date when you want to upgrade.  I recommend paying the annual fee since this keeps you current and also provides an online backup and unlimited Technical Support.  With this said, you can choose not to install an update if the timing is not convenient.
    • When using Intuit’s Payroll, Merchant Services, or Online Banking, all of which I highly recommend, you need to stay at the very least within three years of the current version.  Therefore updating at least once every three years is required. ***The 2010 versions will be phase out in the Spring of 2013. *** 
  • QuickBooks Pro or Premier – This software is purchased without an annual maintenance agreement, to get the new version you need to re-purchase the software.  I recommend that you stay within three years since this keeps your software up to date with operating systems, browsers and hardware.  I would check each year to see what new features have been released and evaluate the advantage of using these features even if your software is less than three years old.  Since the new version is released in the Fall, it makes sense to upgrade in the fall to get the best pricing, early use of the software, and trigger the expense for a calendar year tax deduction.
    • When using Intuit’s Payroll, Merchant Services, or Online Banking, all of which I highly recommend, you need to stay at the very least within three years of the current version.  Therefore updating at least once every three years is required. ***The 2010 versions will be phase out in the Spring of 2013. ***

Sage 100 (Formerly MAS90) – This software can be purchased once and then the customer pays an annual fee to keep the software current.  I recommend paying the annual fee.  If you don’t pay the annual fee you will have to re-purchase the software at a later date if you want to add users, modules or additional functionality.  If you do not keep the maintenance current you will have to pay all back maintenance or re-purchase the software which is extremely expensive when compared to the annual maintenance plan.