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