Communicator
The What, Why, and How
of Application Service Providers
for Accounting

INSIDE

Message from the Chair

Message from the Editor

An Effective Strategy for Teaching Cost Behavior: Divide and Conquer

Looking Back, Looking Forward about Accounting Education

Articulating Issues for Introductory Accounting Courses in the California System

New Directions for Accounting-Ethics Research


Lifetime Achievement in Accounting Education Award

Request for Assistance with Sabbatical Research

Houghton Mifflin Company and SmarThinking.com Partner to Offer Free Online Tutoring to Students

Upcoming AAA Meetings

List of Officers and Regional Representatives

by
Susan V. Crosson, Santa Fe Community College, Florida
and Carol Yacht, Software Consultant

ASPs, or application service providers, offer the latest, most up-to-date software that can be accessed anytime and anywhere by authorized users. QuickBooks for the Web, ePeachtree, and NetLedger are three examples of ASP hosted systems. Because these systems are continually being updated and enhanced, the look of the screens the user sees may change—although the basic data collected generally remains the same.

What are some of the advantages of an ASP over buying and installing software on your own computer for your courses?
You can access the ASP from any computer connected to the Internet. Thus, they provide anytime, anywhere access. It is always current — software upgrades and virus scans are automatic. The most updated version of the software is used every time a user logs on. Installation is easy—just sign up online. If you can access the ASP web site, you know your computer is ready to use the software. Since there is no software CD, there are no specific installation requirements either. It is compatible between users—most ASPs are operating-system independent, meaning they can be used with Windows, Linux, or Macintosh. It is an affordable alternative for software delivery and maintenance for students—ASPs offer free trial periods of 14 to 30 days so students can try out these web-based integrated systems and fast-changing technologies without up-front software installation costs or monthly charges. Also, skilled IT (information technology) support is guaranteed (a big plus for a college that cannot get enough qualified IT professionals to support its computer needs). Finally, an ASP is e-commerce ready—meaning it is equipped to do business-to-business systems applications and Internet-based commerce.

What are some of the disadvantages of an ASP over buying and installing software on your own computer for your courses?
When you use an ASP, all data processing is done over the Internet. For this reason, a high-speed Internet connection is recommended. These include Digital Subscriber Lines (DSL), cable connections, T-1 connections, and wireless radio modems.

When ASPs are used in businesses, they have the following additional disadvantages. Business users become dependent on their ASPs, meaning they are vulnerable to the integrity of their ASP and may become victims of the ASP’s power outages, system crashes, financial health, and data security and redundancy policies. ASP users lose control over scalability and the development of features necessary to customize software to their particular business needs. The issue of maintaining and backing up data outside the ASP grows in importance as users consider alternative offers of service from various ASPs. Once the ASP model of software delivery has been adopted, the cost to change to a comparable software program resident on company computers may become expensive.

What are the web site addresses for the ASPs?  

Each Website includes a link for a free trial version of the software. The three ASPs mentioned in this article are: 

  1. QuickBooks for the Web, which is one of Intuit Software’s accounting programs, is located at http://www.QuickBooks.com/qb4web. QuickBooks for the Web offers a 30-day free-trial version. After the free- trial period, it is $14.95/per month for up to five users.
  2. ePeachtree, which is one of Peachtree Software’s accounting programs is located at
    http://www.peachtree.com/epeachtree. ePeachtree offers a 30-day free-trial version. After the free-trial period, it is $9.99/per month for one user.  Additional users can be added for $4.99 per month.
  3. NetLedger, which is a part of Oracle Corpora-tion’s Small Business Suite, is located at http://www.oraclesmallbusiness.com. Oracle offers a 14-day free-trial version of the suite that contains accounting as well as customer relation management, webstore, webpage, payroll, online bill paying, expense reporting, and time and billing capabilities. After the free-trial period, it is $9.95/month/user for up to 5 users for the accounting component, which includes free access to an accountant. Additional components can be added at an additional charge—the full suite is $99/month. The full suite can be used with up to 100 employees. 

How can I use an ASP in my course? 
Since the ASPs have a limited free-trial version available (from 14 to 30 days), consider using an ASP as a supplement to your introductory accounting or computerized accounting course. In the same way that you use a practice set or case problem, you could consider using an ASP. Giving your students experience using Internet-delivered software provides them with a real-world application. Individual and team projects could also be developed. Try an ASP; you might like it!

To reach Susan Crosson, please email her at susancrosson@sfcc.net or Carol Yacht at carol@carolyacht.com.


Back to Two-Year College Home Page
This page was updated December 21, 2001, by the American Accounting Association