| Accounting software has been gaining momentum | | | | the information technology department. As much |
| over the past years. Companies which use these | | | | as possible involved your managers. |
| software vouch for their efficiency to handle | | | | - Prepare needs analysis. First, ask each division |
| loads of accounting functions but do not add up to | | | | head to prepare an analysis of their department |
| the costs unlike hiring a pool of trained and | | | | which includes all the things they do and classify it |
| licensed accountants. Basically, an accounting | | | | accordingly from the most critical to the mundane |
| software functions like a true accountant who | | | | tasks. To support this listing, ask them to draw |
| handles accounts payable, accounts receivable, | | | | flowcharts to diagram how they perform each |
| payroll and trial balance. Furthermore, the | | | | task. This will allow full view of how things flow |
| software can accommodate other functions which | | | | within the organization. This will help you identify if |
| are usually handled by a staff. It too serves as an | | | | all these duties can be performed by the |
| accounting information system. Accounting | | | | accounting software of your choice. Much better |
| software is varied because their appropriateness | | | | if samples of every form will be gathered and the |
| depends on the revenue or specialties of a | | | | reports done by your former software. Include |
| company. | | | | also systems outside your software that do |
| 1. Software Categories | | | | supplemental duties. All these paperworks and |
| - Low End | | | | analysis will help in the development of a |
| Software from this category perform only | | | | requirements definition - a detailed document that |
| general business accounting functions. These are | | | | defines what your business needs from an |
| inexpensive application software. Best for starting | | | | accounting application. As soon as you get these |
| businesses. | | | | things done, you now have a complete reference |
| - Mid Market | | | | guide for your purchasing decision. |
| The software classified under this category are | | | | - Ask the advice of an independent consultant. |
| capable of serving the needs of multiple national | | | | This person will guide you all the way through the |
| accountancy standards and allow accounting in | | | | process. But just make sure that he is not |
| multiple currencies. The come-ons in these | | | | somewhat connected to any of the vendors your |
| products are actually the integrated or add-on | | | | company considers or else his lines will all be |
| management information systems and maybe | | | | sounding a sales pitch. After getting an outsider to |
| oriented towards one or more markets. | | | | view things objectively, you can now ask say |
| - High End | | | | someone who maybe close with the vendor and |
| Softwares covered by this category are among | | | | who have used the software several times. |
| the most complex and expensive business | | | | - Talk with your current vendor. Now, this is the |
| accounting software. Usually, they are part of an | | | | time to consult the vendor of your former |
| extensive suite of software often known as | | | | software except if you are buying a new one. |
| Enterprise Resource Planning or ERP software. | | | | Present the detailed analysis you just made and |
| - Vertical Market | | | | ask him if an upgrade would be necessary to |
| Softwares assigned to this are those for specific | | | | meet the needs of your company. |
| business types because features needed for an | | | | 4. Prepare A Budget |
| industry is already built in. | | | | - When preparing a budget consider other |
| 2. Setup And Installation | | | | expenses required for the installation of the |
| It is very important to undergo a selection | | | | software such as the hardware requirements. |
| process because you have to find the right | | | | - Be aware of how much the company can |
| product, the one that matches your company | | | | afford to spend and plan the timing. |
| needs. This may be complicated but you have to | | | | - Prepare a spreadsheet matrix listing key |
| bear in mind that installing a new accounting | | | | features of the product that impress you. Start |
| system is very expensive and making the wrong | | | | eliminating obvious poor choices. |
| selection may end you broke. Now you have | | | | 5. Final Assessment |
| committed the biggest mistake of your life but | | | | - Prepare a formal request for proposal (RFP) or |
| there is no more room for crying over spilled milk. | | | | a less formal request for quote (RFQ) from the |
| Think it over in a different light; maybe the | | | | vendor. |
| purpose of this mishap is to give you a chance to | | | | - Ask for a product demonstration. Do not allow a |
| make an overhaul in you business process. You | | | | canned demonstration. You should see the |
| may need to redesign your process. But before | | | | software live in action. |
| you go excited over this whole renovation thing, | | | | - Ask for a list of references you can call like |
| there are some steps to follow. | | | | former and current customers. Be aware of |
| 3. Steps to Follow | | | | those who cannot answer your questions about |
| - Form a technology advisory committee (TAC). | | | | the product directly. |
| This committee will head the entire operation - | | | | - Undergo a prototype testing to know if your |
| from selection of the product to implementation. | | | | systems and data are compatible to the software |
| Members of this committee must come from the | | | | and identify problem areas. |
| major divisions of the company so that all facets | | | | - Visit the vendor or its agent. |
| of the business may be considered. However, | | | | - Review your contract before making a final |
| members of the group must be limited to seven | | | | decision. Ask a counsel to do it. Support the |
| members. TAC should have a senior manager in | | | | contract or include all agreements discussed, the |
| the group to provide authority, manager of the | | | | RFP or RFQ and documented communications. |
| accounting department and a representative from | | | | |