|
4. Evaluate application
performance
|
| Once you have
selected a reseller or consultant to work with, take time
to review specific software applications. |
| Here's a secret
most accounting software companies won't tell you: the
vast majority of accounting programs perform basically
the same functions. Naturally, how they do specific tasks
varies greatly. Does this mean you can't go wrong when
it comes to choosing accounting software? Not really.
There are substantial differences among programs, what
kinds of information they deliver, and the companies that
create accounting software. |
| Here are several
of the key elements to consider when reviewing various
accounting software solutions. |
| The
company |
|
Are you familiar with the company that makes the software?
Are they a respected name in the accounting software
business? What is their vision for the future, both
of their own products and the accounting software industry
as a whole?
These are just a few of the many questions you should
attempt to answer regarding the manufacturer of each
accounting program under consideration. Obviously, you
don't want a "here today, gone tomorrow" organization.
|
| Scalability
as a product |
| Scalability
is a fancy word for a simple concept: can your software
expand as your business grows? There are two elements
to a product's scalability. The first is scaling up-does
the software manufacturer have a family of products that
your organization can upgrade to over time in a logical,
easy and cost-effective manner? When considering future
upgrades, ask these questions: |
| How easily/quickly
will existing data convert to the new version? |
| Will the interface
of the different software products remain the same? (The
same interface significantly reduces the amount of training
needed.) |
| What price
incentives, if any, are offered to current customers who
want to upgrade? |
| Will customized
reports and other customized features run when the new
software is installed, or will these be lost? |
| The other element
to consider is whether the family of software allows for
scalability out-can you add elements to enhance the existing
software? The best software solutions allow scaling out
by offering: |
| Numerous
optional modules in addition to core modules. |
| Third-party
products. |
| Availability
to customize functions, reports, etc. |
| Web store and/or
e-business capabilities and integration. |
| Calculating consulting costs |
| Consulting
fees vary greatly depending on the needs of the company,
the expertise of the consultant, and a host of other factors,
While it's impossible to estimate exactly how much you
will spend with a consultant during the analysis, implementation
and training phases, the list below provides some common
ranges for you to consider. |
| Analysis of
client needs 4-20 hours |
| Install network
and applications 5-20 ours |
| Modify procedures
for new system 2-5 hours per module |
| Design chart
of accounts, customer files, vendor files 10-20 hours |
| Modify system
reports 10-25 hours |
| Train clerical
personnel 10-20 hours |
| Train system
administrator 10-25 hours |
| Document modifications
5-10 hours per module |
| Your may have
additional costs-and some savings -if your accounting
system is already automated, data conversion could cost
more, but analysis and training could cost less. |
| Business on the Internet |
| Nearly every
business requires some interaction with the Internet.
The current pace of technology adoption has increased
dramatically. While it took more than 70 years for the
telephone to reach 50 million users, the Internet reached
that same number in only five years. In another 10 years,
experts predict that Internet technologies used to expand
the scope of your business will be considered as common
a business tool as the telephone. |
| What does the
Internet have to do with selecting accounting software?
E-business encompasses the full range of activities a
business undertakes using the Internet. This includes
not only buying and selling but also servicing customers,
collaborating with business partners and conducting electronic
transactions within an organization. The most successful
organizations will have their e-business software tightly
integrated with their accounting software. |
| In addition
to seamless integration of transactions and business processes,
Web software should also have the following characteristics: |
| Adaptability
to existing business processes and customer expectations |
| Flexible deployment
for ease of installation and scalability |
| Affordable
solutions for each e-business initiative |
| Explore with
your consultant and/or software publisher the scope of
e-business products and services they offer, and how closely
these match the above points. |
| Speed
of installation |
| Installing new accounting
software is a major undertaking. A key issue to understand
is how quickly and efficiently the new software can be
installed, In general, the longer it takes to install
the software, the more costly the installation process
becomes-and the more possibility for errors or other interruptions
to your core business. Ask your consultant or software
vendor how long it takes for a standard installation and
what factors may increase or decrease the amount of time
needed. |
| Ease
of use |
| Business, in
general, and accounting in particular, can be complex;
you want an accounting solution that's simple, logical
and easy -to-use. Consider these questions during your
review process: |
| How simple
and easy-to-use is the software interface, the primary
screens where data is entered or otherwise managed? |
| How easily
does navigation take place between modules of the software?
|
| What type of
software documentation and training will be provided?
|
| How strong
are the software company's technical support and customer
satisfaction departments? |
| What's
underneath the iceberg? |
| Most accounting
software solutions include basic components. Review carefully
what a program doesn't have as part of its core modules;
available options, while nice to have, can also quickly
become expensive. |
| Attempt to
discover what each program has "below the water." Are
options such as multicurrency conversions, reporting capabilities,
or invoicing features, to name a few, included in the
core program, or only available as costly add-ons? Ask
your reseller for help here; develop a complete understanding
of what each program contains and how much each optional
function will cost. |
| E-Business
capabilities |
| Within the
nest 10 years almost every business will do business over
the Web in one form or another. With this in mind, it's
important that your accounting software be robust and
versatile enough to: |
| Offer e-business
capabilities |
| Integrate tightly
with Web-store software |
| Building and
running a Web store in particular is a huge challenge.
So too is maintaining a site that operates 24 hours a
day, 7 days a week, 365 days a year (24/7/365). The best
accounting software solutions are those that link closely
with Web-store and other Internet software. These solutions
allow your organization to operate more efficiently and
realize greater economies of scale. |
| Again, ask
your consultant for guidance. This long-term thinking
is critical to choosing the best accounting software solution. |
| Globalization |
| With the emergence of
the Web, almost all companies will become global companies,
in that they will buy and /or sell products in countries
around the world. Here are key questions to consider regarding
how global the accounting company and software are: |
| Are multicurrency
options supported? |
| Does the company
sell and support products in the countries in which you
do business? |
| Is the software
available in languages other than English? |
| Can the software
deal with the various taxation and reporting requirements
of these countries? |
| Other
factors |
| Other key elements
to consider when reviewing accounting software solutions
include the following: |
| Capacity
|
| This refers to the software's
limiting characteristics. What are the maximum numbers
of customers, vendors or inventory items it can handle?
How many line items can be included in a single invoice,
sales order or purchase order? |
| Reporting capabilities |
| Does the software already
have the capability to produce the reports that your organization
requires? If not, can customized reports be created with
a minimum of time and added effort? |
| Ease
of input |
| You want a system in
which information can be entered quickly and efficiently:
full-screen editing, embedded help systems, clear prompts,
etc. You also want a system that does not require excessive
mouse use, slowing down entry of information by continually
forcing the user to switch between keyboard and mouse. |
| Data validation
|
How good is the software
at preventing mistakes from being entered into the system?
The program should test for errors (such as duplicate
customers and vendors, incorrect item numbers and unreasonable
amounts or dates).
A good system also notifies the operator of unusually
high quantities or unit prices for certain types of items
and offers valid choices along with the notification message.
|
| Error handling
|
| Find out how well each
program prevents unbalanced transactions, and how users
are stopped from deleting or otherwise loosing important
data previously in the system. Some systems provide detailed
audit trails for errors to track who is making each change. |
| Security |
The degree to which sensitive
functions and reports can be protected through passwords
will affect how the program rates in security. Ideally,
you should be to specify which operations each user can
perform at any given time.
For example, a system with strong security would allow
you to specify that your accounts payable clerk could
only print checks on Thursday afternoons beginning June
1 and ending August 30. Some systems will even provide
a report to verify when the check run was performed and
by whom. |
