More and more of our clients are turning to bar code scanners in an effort to reduce key punch errors and save time entering data. While bar code scanning is nothing new it is being adopted for a wide range of applications from document management to traditional point-of-sale terminals. So how does a typical small business setup work. Here's the short story...

You will need a scanner. These come in two basic types: serial and keyboard wedge. A serial scanner plugs into the serial port on the back of your computer. A keyboard wedge scanner plugs into the keyboard jack and has a "Y" connector that you then plug your keyboard into. These are by far the most popular types of scanners. Serial scanners, while less popular, do have an advantage we will talk about later.

The thing to realize about scanners is that they don't perform any special magic. They just take the place of your fingers actually typing in the data. There are scores of bar code formats but they all come down to a graphical representation of alpha-numeric data. Instead of keying in a product number you can shoot the bar code with the scanner and the number will appear on the screen as if you had typed it in. If there is any application where you have to enter a product code, document number, or some type of reference identification a bar code and scanner may be able to increase your productivity.

Next comes software. Since a bar code scanner acts as nothing more than a really fast and accurate keyboard you can use the scanner anywhere you would use your keyboard. For instance, we've used scanners to help clients with inventory counts by opening an excel spreadsheet, shooting the item, then tabbing over one column to put in the amount, location, etc. Some clients even bar code the shelf locations so you shoot the product, tab, shoot the shelf location, tab and enter the quantity. You can then cross reference your count sheet with a product database and tabulate inventory extensions.

Another common application is Quickbooks. By bar coding product numbers you can create item receipts, purchase orders, invoices or sales receipts by shooting the bar code and tabbing to the appropriate quantity field. In a stock room bar code scanners are particularly nice when paired with a laptop. This allows clerks to instantly look up inventory levels and  verify quantities without having to hard key product numbers that can be 8 to 12 digits long.

Serial scanners have the advantage of directing their output to a separate port on your computer. This allows special software programs the ability to capture the scan and "translate" it before passing it on to the application you are working in. One such product is SmartScan from Baus Systems. Here's how it works. Say you have an item number in QuickBooks of "W2367" but the manufacturer of this item has a UPC bar code of 491320. Using SmartScan you can "translate" the UPC so that when you scan the product and the scanner sees 491320 it sends a value to Quickbooks of "W2367". This is powerful since it allows you to create your own product numbering system while using the universal UPC or other bar codes common on almost all packaged goods. Most manufacturers have proprietary codes they use for internal purposes that you can re-use with translation software to implement bar coding in Quickbooks. However, this type of system requires a serial scanner and they're usually more expensive than the common wedge interface scanners.

One final consideration is whether or not you want a wireless scanner. These are becoming more common. One model we have used with success is the Wasp WWS 880K (pictured at left). It uses Bluetooth technology and has a range of about 30 feet. It recognizes all of the widely used bar code formats and is easy to setup. It retails for between $450 and $500. The Wasp is a wedge interface scanner. Wireless serial or RS232 interface scanners usually require the purchase of the scanner and adapter cables or decoders separately. If you go this route contact a reputable dealer such as Barcodes Inc. and tell them what you are trying to accomplish. They can recommend the best solution.

At a retail counter you will rarely need a wireless scanner but our experience is that they are the only choice for stock rooms, loading docks and other "back office" venues.

Joey Brannon is the founder of Axiom Professional Group, a tax, consulting and accounting firm in Bradenton, Florida. Mr. Brannon is both a CPA and an EA. You can find out more about Axiom by visiting www.axiomcpa.com.