ONLINE ACCOUNTING SOFTWARE REVIEW: Liberty Accounts. By Nigel Harris
Source: AccountingWeb - May 2006
Liberty Accounts looks like a package that has been thought through and developed by real users. As a result, it does what it needs to do simply and without fuss, which, after all, is what we're all looking for.
Login looks secure. All online transactions use a Thawte SSL web server certificate to ensure secure transmission of your data. The home page gives a typical management snapshot, lists of outstanding sales and purchase invoices and the current bank balance. The Windows-style drop down menus mirror desktop accounting packages, each option does what you'd expect, and it operates quite slickly for a browser-based application.
Posting transactions - invoices, bank transactions or journals - is intuitive and every data entry cell has a '?' you can click on to get instant help if you get stuck. Batch postings can be made to save time.
The reporting function is excellent. Reports are generated as PDFs almost instantly and displayed automatically. The presentation of reports and the range of report options look very much like QuickBooks, so there's instant familiarity for most accountants. The reports themselves are very clear and, most importantly, they are very presentable so could be used as is with directors or the bank.
There are some useful additions to the bookkeeping functions, such as a basic share register, asset register, operating leases section and motor vehicle list. I didn't look at the payroll section, but Liberty also provides integrated payroll and online filing of end of year returns.
A nice extra is the facility to record and report P11D data which the accountant or user can use to complete the forms (the actual P11D is not produced).
Like most modern accounting packages, Liberty will allow a typical user to easily handle VAT themselves, either invoice or cash accounting, if they want to (producing a VAT transactions report and VAT form to help the user complete their VAT return). The ironic exception to this of course is the VAT Flat Rate Scheme which does not make VAT simpler in a computerised bookkeeping environment - you can do it manually but it is not as simple as for a user on the standard schemes.
The great thing about online accounting software is that it is available to authorised users from any Internet connected computer. You are no longer restricted to being in the office to produce invoices or work with your business accounts. For those with little IT expertise it has the additional advantage that there are no annual updates to install, and you don't need any new hardware or backups because the provider takes care of all that.
Liberty is designed to be a branded service for accounting firms to offer their clients. Accountant and client can then access the same accounting information and produce real-time results, either collaboratively or by sharing the bookkeeping tasks. However, some clients will prefer just to enter bank transactions and invoices and let the accountant do the VAT and the 'clever stuff'. Liberty caters for any scenario. To make production of final accounts easier, Liberty can then generate CSV files of client TBs or transaction lists, with your existing accounts production nominal code reference, for easy import into your final accounts software.