Because software can be industry-specific, it’s difficult to make general recommendations about when and how to upgrade. Still, there are a few basic decision-making factors.

For niches, one suggestion is to track competitors. If they use the latest version of Peachtree Accounting software, and you’re two versions behind, it may be worth taking a second look at the benefits of upgrading. But it may make no difference in your productivity, in which case an upgrade is unnecessary. You won’t know until you check.

A graphic designer should probably have the latest version upgrades, since it’s necessary to offer the same capabilities as competitors and to remain compatible with vendors, such as service bureaus and commercial printers. Similarly, Web designers and Internet-based businesses probably need to have the newest capabilities in the ever-changing online world, where speed and usability are decidedly competitive factors.

For these niches, it is every bit as important that a software upgrade maintain a competitive advantage as it is to upgrade for greater productivity. In other words, does using last year’s version carry a penalty, such as a lack of compatibility or efficiency?

For more generic businesses, it’s wise to follow the pack. That translates to using the Microsoft Office suite of applications (Word, Excel, Outlook and PowerPoint).

Office is clearly the business standard, and its file formats are readily shared within and between businesses, and among businesses and customers. An off-brand format risks incompatibilities that can grind transactions to a halt.

Consultants, however, see no reason to leap at periodic upgrades of Office or even upgrades to the Windows operating system. Most businesses will notice no difference in function or productivity if they stick with their current versions. Indeed, upgrading an operating system can be more trouble than it’s worth for many businesses that are getting along just fine with older versions.

A good time to upgrade to new Windows or Office versions is when they come installed on a new computer. The bundled software cuts costs and decreases the likelihood of glitches.

Bottom line: If the software you have is doing the job, there’s no reason to upgrade