Upgrading Accounting Hardware

Distributed networks have multiple computers doing the processing. This is the situation for the typical Solomon site. Most accounting departments tend to be ‘low on the’ totem pole when it comes to getting new hardware. I contend this is false thinking, especially when you look at labor costs vs. equipment costs.

When you update your Solomon server with a newer / faster machine, everyone using that server benefits. When you upgrade your Solomon workstations which have newer operating systems (i.e. XP professional or Windows 2000 professional), you get much better memory management and speed improvements. This newer equipment creates productivity for the computer user.

This table illustrates various breakeven costs by replacing old workstations with new equipment.

Burden Wages in Accounting ($/hr)	Workstation Cost at	Number of hours labor saved to reach the break even point
25.00	$600/unit	24
30.00	$600/unit	20
35.00	$600/unit	17.2

Newer/ faster computers create more productivity for accounting people. The breakeven points are very low. Just think, if you replace that 300 mhz machine with a 2.8 GHZ machine, the new machine is processing at over 9 times faster than the old.

With typically less than 2 hours / month required for savings, the new equipment start paying for themselves in less than 1 year.

Think about replacing old computers with newer units as your “oil” change for your accounting engine. Having an business upgrade/ replacement policy spreads out the capital outlays into smaller chunks, as opposed to replacing all equipment at once. Smaller steps smooths out your cash flow requirements to stay current.

Look around your accounting office; are you in need of new equipment?