"We are (turning) into reality our vision of running a business online. With each release it becomes more real," said Bill Mirbach, president and chief executive.

The company, which has attracted thousands of users since its launch last year, has released version 4.0, which includes features such as payroll, online customer ordering, and customizable reports.

NetLedger is stepping into a highly competitive space already populated by other providers of online payroll, such as Margate, Fla.-based Virtual Payroll, at virtualpayroll.com; Ceridian's Powerpay.com, based in Pine Brook, N.J.; and OneCore.com, based in Bedford, Mass. OneCore's payroll services are administered by payroll service provider and Intuit subsidiary Computing Resources of Reno, Nev. Meanwhile, many observers are awaiting a direct assault on the market when Intuit rolls out a totally Web-based version of QuickBooks.

NetLedger will be exhibiting version 4.0 at the Business & Technology Solutions Show on Aug. 23 and 24 at the Rosemont Convention Center in Rosemont, Ill.

The new payroll module acts as a do-it-yourself tool for companies who want to handle payroll in-house. The module calculates earnings, withholdings and 401K deductions. It also generates and prints paychecks. At the end of the year it will print W-2s. Payroll activity is automatically reflected in the general ledger to avoid duplicate data entry.

"This is a way to write payroll checks yourself and we do the math for you. We tell you how much you owe, but you have to do some of the work," said Mirbach.

For companies that wish to outsource their payroll, NetLedger has established a partnership with Roseland, N.J.-based Automatic Data Processing, a payroll processor. The partnership enables NetLedger's online accounting to be integrated with ADP's EasyPayNet online payroll. Data is automatically updated in the general ledger and other accounts as payroll is processed.

Small businesses are not the only ones that can benefit from NetLedger's services, noted Mirbach. So can accountants. The company has developed an Accountants Program, where accountants receive two free NetLedger accounts, one for office use and one for demo or training purposes. When a client signs up for NetLedger, the accountant gets a $50 NEBS merchandise credit for each client who becomes a paying NetLedger user. Accountants can give this credit to the client if they choose. Accountants also have the option of receiving a 25 percent referral fee for each client that signs up using the accountant's affiliate code.

"It means better service to their client. It means a closer relationship with their clients," said Mirbach. "It means for some, those who are interested, a profit opportunity."

The monthly fee for NetLedger 4.0 is $4.95 per month per user with one free access seat given to the subscriber's accountant. Customers who sign up for the payroll module pay an additional $4.95 per month for each person who has access rights to this particular feature. The online customer-ordering feature, which enables small businesses to take advantage of e-commerce, costs $19.95 per month for an unlimited number of users.

-- By Antoinette Alexander

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