The preparation of the Individualized Education Program (IEP) for each handicapped child is seen as cumbersome and time consuming and involves writing similar goals and objectives repetitively for different students. Utilization of a microcomputer-based IEP preparation system has a significant impact on this process and what the school psychologist needs to know about computerized systems and what questions should be asked are the focus of this paper, which describes: (1) the steps the school psychologist should take prior to searching for a computerized system; (2) selection criteria and questions; and (3) implementation issues. The advantages and disadvantages of computerized systems should be considered in a preliminary needs analysis phase. Software specifications should be clearly defined and categorized as absolutely necessary or highly desirable. Implementation issues include staff training in both general computer skills and in software use, parent involvement in the computerization process, and quality control. (JDD)