Small Business Manager Updated, Renamed

An updated Small Business Financials (SBF), formerly Small Business Manager, is part of a new Microsoft strategy for competing in the small business accounting software market dominated by Intuit’s QuickBooks. Recently announced retail availability and lower costs compared with previous versions could improve SBF adoption and establish a base of customers for Great Plains, one of several Microsoft Business Solutions (MBS) accounting and business management packages for mid-size companies. However, because Small Business Manager was available only through certified MBS partners, this strategy portends changes to MBS’s traditional channel, particularly for partners servicing the low end of the market.

Where Small Business Financials Fits

Based on the same code base as Great Plains (one of MBS’s four main product lines, along with Axapta, Navision, and Solomon), SBF is the entry-level product in the Great Plains stable. (Microsoft offers other entry-level accounting products, such as Money, that are not based on Great Plains.) SBF is aimed at companies with between 10 and 49 employees and provides basic accounting, inventory management, and payroll features. Because of the products’ shared code base, SBF customers can upgrade to Great Plains as their business grows. Competitors to SBF include Intuit’s considerably more popular QuickBooks (specifically QuickBooks’ Premier and Enterprise Editions) and Best Software’s Peachtree. Additional software allows Microsoft’s and its competitors’ products to accommodate specific types of small businesses—for example, retailers can add point-of-sale (POS) capabilities by purchasing Microsoft’s Retail Management System or Intuit’s QuickBooks Point of Sale.