OPEN SOURCE IN THE LEDGER DOMAIN

Open Source software for business accounting, is there such a thing? Quicker than you can say Intuit, one such package is catching attention as mature enough for real business use.

   
 
by Nancy Cohen

July 30, 2003
 
     
  What’s out there in Open Source for businesses seeking out accounting software? Not a lot. The number of Open Source software applications widely known among non-technical end users for desktop use can be counted on the finger of one hand.  Don't be surprised, though, if buzz starts building over SQL-Ledger, a slick Web-based, multi-user, double-entry accounting system, which just so happens to be an Open Source application.  For struggling small businesses, an out-of-the box product that can run on Mac, Windows, or *NIX platform and can be acquired without reversing the direction of cash flow is an interesting alternative. SQL-Ledger user Noel Henson is a case in point.

He is the man behind Noel’s Lab, a small consultancy and contract engineering service for embedded systems, embedded firmware, and micro-controller-based ICs (integrated circuits).  Henson and crew needed an easy to use accounting package. In the search process, they wanted to steer clear of proprietary Microsoft-based systems.

Henson says his looking around was motivated by problems met in earlier attempts to track client invoices and receipt of payments. “We initially started using Open Source spreadsheets and word processors (Gnumeric and AbiWord),” but then ran into trouble in the process of tracking.

Henson says that since most of the company’s “product is intellectual property with few expenses”, he mostly uses the Invoicing and Receive Payment functions, statement, and open invoice reports. “We’re still small but growing,” he adds, “and using more of SQL-Ledger as time goes on. We’re pleased that its development is outpacing our ability to utilize all the features.”

 
         
 

Over in Manhattan, SQL-Ledger drew the attention of an active organization championing Free Software and GNU/Linux, appropriately called The New York GNU/Linux Scene (NYLXS) , which has mobilized a number of business expos and has a group called 'The Free Software Chamber of Commerce'. Here is where one can find computing professionals on a mission to help businesses obtain their goals of reducing costs and ensuring efficiencies through Free Software.

According to a posting by Ruben Safir of the NYLXS, SQL-Ledger had got the attention of  the accounting firm, Rosenzweig and Maffia LLP.

Can SQL-Ledger really supplant proprietary accounting packages? Dieter Simader, the man who developed SQL-Ledger, first explains its beginnings: “SL initially consisted of a few scripts put together to keep track of receivables and payables. It was very specialized, linked to an e-commerce site, and served as control software. It saved a lot of time and it had the advantage of making entries from any place where the user could access the Internet.”

 

SQL-Ledger SNAPSHOT

SQL-Ledger is a Web-based, multi-user, double-entry accounting system, developed on FreeBSD, Linux, and Apache. The application works well with both GUI and text-based browsers and was initially designed to use Oracle DBMS.

Sample uses: Invoices, packing lists, balance sheets, sales and purchase orders; provides accounts receivable, accounts payable, and general ledger reports

Database support: PostgreSQL or Oracle to store accounting data

Scripting Language: Perl

Latest version: 2.0.8

Language support: Czech, Danish, Dutch, Estonian, Norwegian, and more

License: GNU GPL

 
     
 

None of the commercial programs he knew of could offer this feature, and development continued. Is SQL-Ledger still a work very much in progress? Simader says its stage of maturity is well beyond sufficient. “The forms are professional looking documents, beyond looking like simple text printouts,” he says. As important, Simader says he seldom receives any bug reports. Past instances if at all were dealt with in hours, he continues, and Version 2.0 has been performing very well. “All I can say is that the last release is a solid performer,” he says. “Otherwise I would have heard from the community if something didn’t work.”

Like many other Open Source companies, Simader is relying on revenue from support contracts and customizations. His business goal, he says, is “slow, steady growth.” He doesn’t count on a VC windfall any time soon, that’s for sure. “Venture capital would help accelerate development but after the dot-com bust, wallets closed and venture cap dried up.”

Development goals are less leisurely paced. The next major release of SQL-Ledger is targeted for this December, and it is a major version jump. If SQL-Ledger’s early goal was providing a generic accounting framework that any user could build upon, the next step, says Simader, is to “to add lots more for manufacturing, warehousing, and distribution.”

Does Simader rate SQL-Ledger as having reached the Holy Grail, if the definition of the Holy Grail is to be QuickBooks or accounting software from Peachtree? Simader says no, but his reason neither pertains to quality nor maturity.

“SQL-Ledger is built differently. Although the outside looks compatible to an accounting program, the underlying technology makes it stand out.” Simader’s notes the two standouts about SQL-Ledger: It is open and customizable.

“SL is customizable to a degree you cannot get with any other program. It is interpreted code. You don’t need to be a Perl guru to change code. What’s really unique is that you can plug in custom code and make something else out of it. [The product allows users to plug in customized code globally and for each log-in.] I kept the code readable, and I try not to use too many shortcuts. This makes it easier to follow and change the code.”

Businesses using SQL-Ledger, represent a varied list of companies around the globe, from Belgium to South Africa to Venezuela, of various sizes and types—medical practices, logistics companies, manufacturers, consultants, universities.

The shortcoming Simader does talk about is the absence of a payroll module, even though he says he doesn’t consider it an integral part of accounting software, “since payroll is very country-specific, and is contracted out quite often.”

As for contributions from the SQL-Ledger community, as the software matured, the number of contributions lessened, but this, he adds, is natural. It was never a case of “fun” motivating the developers but rather a pulse-driven motive to get Open Source software out there that could do accounting.

“Development from others comes from a need to have,” says Simader. “If someone needs a certain feature and wants to have it in the core, he will submit it. Check printing was one such contribution. The initial code came from a business owner who needed it and wanted to see it become part of the core. I found it was a good addition to have so I revised it for use all over the world and not just in the US.”