The WAC Files

Five Things to Remember When Evaluating Accounting Software

  

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I just read an article published by Focus Research that asked an interesting question: What is ERP in 2010? And it got me thinking about the evolution that we have seen in our own business over the past 10 years or so. We started out selling and supporting accounting software that did exactly what the name implies: accounts payable, accounts receivable, general ledger. Just for fun, I looked up the definition at the Business Dictionary site. And it's all about financial data.

These days, the accounting function has become integrated with many other functions within a company. The term ERP originally spoke to the enterprise (Enterprise Resource Planning), but today, it's widely understood that every business has a lot to gain by pulling together disparate systems, databases and departments. Knowing this, how does a company go about to select a solution that best fits their needs? Think first about what you want to get out of your system:

Many organizations stay with their current accounting system too long. It's comfortable to use something that's known and understood. Plus, there are significant time and resource issues, including the cost to change and the time needed to learn the new system.

In order for a system to meet your business needs, it should mesh with your existing business practices and adapt to technological innovations. Ideally, you want software that's simple, intuitive, and closely matched to how you already do business.

1. Make a list of the challenges you are currently experiencing.

2. Then create a second list of what you'd like to do but are unable to do now.

Step 2 - Define the Roadmap

Many businesses automate for the wrong reasons, or computerize functions that offer little payback. First, apply your resources to the areas with the most benefit to your bottom line. You can determine these areas through analyzing your current business processes and your accounting system.

1. Make a list of the resources you require to operate your business on a daily, weekly, monthly basis.

2. Keeping these resources in mind create a second list of what you'd like to do but are unable to do now

Step 3 - Identify Your Business Solutions Provider/Consultant

Ask for contact names and phone numbers, then call to learn as much as possible about the customers' working relationship with the reseller.

1. Make a list of questions you would like to ask your prospective business solutions provider.

2. Ask for customer references.

Step 4 - Select An Accounting Software Package

Consider these questions during your review process:

1. How simple and easy-to-use is the software interface, the primary screens where data is entered or otherwise managed?
2. How easily does navigation take place between modules of the software?
3. What type of software documentation and training will be provided?
4. How strong are the software company's technical support and customer satisfaction departments?

For a thorough overview of steps to consider when evaluating accounting software, download our whitepaper "Five Steps to Consider When Evaluating Accounting Software".