Are you feeling overwhelmed by the steady stream of new software versions and updates that are always coming out? Sometimes it seems like advancements in software take place overnight. But if you think you have to make a big financial investment in order to keep up to date, read on. The solution may be more manageable than you think.

Get Organized
Before you make any decisions about acquiring applications for your small business computers, take stock of what you already have. This involves doing a simple inventory of your computers and all the programs that you have installed.

Think about all the things you rely on your computer to do for your business. Is there a program you need that you haven't acquired because of the cost? You may be able to afford it after following the guidelines below. Are there applications you're running that no one in your business uses anymore? You can save money by not renewing their licenses and make room for new apps on your hard drive by uninstalling them.

Confirm Copyright
Find all of your software licenses and match them up with the inventory you've taken. Generally, you need to have one current license for each application on each computer. However, you might even save money if you discover you actually have an additional license not in use that can be applied to a new user without having to purchase new software.

Why is it so important to make sure your programs are licensed? Because software you purchase doesn't necessarily belong to you. When you pay money for a program, you become a licensed user, not an owner. That license allows you to use the software on that particular computer only. If you install the software on other machines, you're violating the license agreement. This is a copyright violation, and you could end up owing thousands of dollars in fines if you are convicted.

Licenses can expire, so make sure the ones you have are still valid. You may find it useful to set reminders to alert you when these licenses expire so you can renew them.

Reap the Benefits of New Versions
Check vendor Web sites or subscribe to their newsletters to be alerted when new versions, updates, or patches become available. The longer a program is used, the more glitches and security holes are discovered. These can be remedied in future versions. Running current versions of your programs can protect against crashes, viruses, and lost data that older versions may have been susceptible to. You will also be sure your documents are in a recent format that you can share with others who are running new versions of an application.

Remember: you don't necessarily have to purchase a whole new version of the application to benefit from these enhancements, and that's where you have the opportunity to save some money.

Save Away
Once you have taken inventory and know what applications you have and which you need, you can wiser purchase decisions. Here are some ways to save:

• Opt for an upgrade. First, determine if downloading a patch will remedy security holes or bugs in the version you're running without having to purchase a whole new program. Next, check with the manufacturer to see if an upgrade is available for an application you already own. The upgrade might allow you to take advantage of new features without having to purchase the latest version.

• Buy for more than one user. Many software manufacturers offer discounts when licenses are purchased in multi-user packs. You can save money by buying in packs of 5, 10, or more. Multi-user pack purchases are especially useful for growing businesses that plan on expanding their network or workforce.

• Purchase in suites. If there are related products that you need from the same manufacturer, find out if a suite is available that includes those related applications. It may cost less than buying them separately, and you may get additional programs in the suite that prove useful.

• Go boxless. You may find that just ordering paper licenses or downloading programs and updates from manufacturer sites will save you money. Depending on the applications you need, manufacturers sometimes cut the price on programs that don't have to be boxed with manuals and mailed. You’ll save on shipping costs as well.

Software applications evolve and grow quickly. Don't be overwhelmed. Any time you add new applications, employees, or computers to your business, plan on reviewing and updating your inventory so that you know which applications you have and which ones you need. Managing your software helps you stay legal and allows you to reap the benefits of improved functionality and security. In the end, you'll have more time and money left to spend on growing your small business.