"One size fits all" is one of the biggest lies in clothing. Similarly, the notion that one accounting application can be suitable for all small businesses is one of the biggest myths in computing.

Small-business accounting applications such as Intuit QuickBooks, Microsoft Office Accounting (formerly Small Business Accounting), and Peachtree and Simply Accounting from Sage Software are popular tools to help you manage business operations and keep track of finances. But while they are capable and cost-effective, they are not necessarily best for every business.

If you run an off-the-rack type of small business, you can be quite satisfied with the capabilities of these packaged business management applications. Some are available in several editions; typically, the more expensive versions permit additional users and add specialized capabilities such as time billing and project tracking. However, if your business has special requirements, using a packaged application can be like wearing a jacket with sleeves that are uncomfortably short.

Recognizing these limitations, vendors of accounting packages have added some customization capabilities in recent versions that may help out. For example, you can remove unneeded features from program menus, and also create custom reports. You can add new fields to displays and reports. One of my clients even added a birth date field to his accounting application's customer database, so he could track birthdays and send a congratulatory card to each buyer.

When Shrink-Wrapped Isn't Enough

But sometimes such customization features are just not enough. Perhaps you deal with your customers in a unique way or offer more options for your products than does the competition. In that case you have two choices: Adapt your business operations to the software available, or adapt software to meet your business requirements. If changing your business operations feels like shortening your arms to fit a jacket, how should you handle changing the software?

While you can start programming an accounting application from scratch (or, more probably, hire someone to do so), that's much like re-inventing the wheel. If you require a custom solution, it's usually more cost-effective to start with something that comes close to what you need, then modify the source code to deliver a precise fit.

Applications for which source code is available should not be confused with open-source software. Open-source business accounting programs such as TurboCash and SQL Ledger do have source code available. However, not all applications for which source code is available are open source. Some, such as Open Systems' OSAS and Sage Software's Sage Pro, are licensed under more traditional terms and require payment to use the software.

Bringing in a Pro

Modifying the source code for an accounting application requires more technical knowledge than installing a packaged application. You may need support from a contract programmer or experienced consultant. You can often get good leads to qualified professionals from the application developer or a product support bulletin board.

Once you've got your modified software, be sure to test it thoroughly to ensure that it works as you expect. I recommend running it in parallel with your existing system for a minimum of three months. Compare the results each month to see if the overall totals agree. If they don't, stay with your original program until you get concurrence for at least two months running. Yes, this means extra work, but it's one of the costs that must be factored into your decision to go the custom route.

Examine the capabilities of packaged applications and their customization options carefully before rejecting them. Sometimes a business assumes its needs are unique when, in fact, thousands of other companies have similar requirements and software to deal with them is already available. But if your business operations are truly different, there's nothing better than the fit you can get from accounting software based on customized source code.

Richard Morochove is an IT consultant and writer who can be reached via e-mail.