FAQs: Accounting Software Programs
How do I select the right
accounting software program for my needs?
If you are buying accounting
software for the first time, factors such as cost and
simplicity of use are likely to be high on your list of
selection criteria. However, if you are a more
experienced buyer, then you will probably be looking for
reassurance about the quality of the product, the
reputation and experience of the software program
seller, and the level of after-sales support that they
can offer.
Whatever type of buyer you
are, you should certainly make sure that you plan your
purchase carefully and allow sufficient time in the
buying process to fully understand the nature of the
product you intend to buy, who is going to install and
implement it for you, and who specifically is going to
be responsible for that all-important after sales
service. Also, carefully scrutinize any service
agreement proposed by the product provider If you
plan to buy accounting software from several different
sources, then you need to address all of these same
issues for each one of your suppliers.
In addition, ask the software
provider for client references and take the opportunity
to speak to two or three users of the product, or
products, that you intend to buy. This can help you get
an independent perspective on, not only the performance
of the product itself, but also on the key issues of (i)
the quality of the implementation and (ii) the
after-sales support. You could even make a test call to
the support line to test the response yourself.
What does accounting
software typically cost?
Unfortunately there is no
simple, universal answer to this question. It is
necessary to clearly define your requirements before you
can even begin discussing price. Once you have done
this, and discussed your needs with a provider or
providers, then there are a number of factors that will
impact the final bill. As well as the cost of the
software itself, costs can include:
- Any customizing of the
software
- Any new hardware and/or
network infrastructure requirements
- Training time and
materials
- Implementation (external
and internal)
- On-going maintenance and
technical support
- Software licenses
The receipt of after-sales
support is usually dependent on the payment of an annual
maintenance contract. Such a contract needs to be
scrutinized very carefully—and be aware that the cost of
any such support is likely to be determined more by the
price of the initial software, rather than the actual
level of support received. You should negotiate
the price of the maintenance contract when you are
buying the software and make sure it is fixed for an
agreed time period. This will enable you to budget
without the fear of price increases.
Will the product live up
to expectations?
It’s generally wise not to
expect the product you buy to fully live up to all of
the promises made in its advertising material. It is
quite normal when it comes to marketing for software
product attributes to be “enhanced” so that it appeals
to a greater number of prospective buyers. So, go into
the process with your eyes wide open and in the
knowledge that you will have to decipher the real
product benefits that are crucial for you from
those overblown ones that you don’t really need or want.
This doesn’t mean that you should ignore the promotional
support material and software demonstrations put out by
the provider, but rather you should balance these with
other sources of information, such as independent
product reviews and references.
However, having said all of
this, there is no reason why your selected software
cannot deliver what you are expecting as long as you are
realistic. Your vision for your business may be for a
fully automated accounting system with a real-time
information provision. This is certainly attainable but
involves a significant investment on your part in terms
of time, effort, and money. There are no shortcuts to
the process, so ensure you define the benefits you
expect the software to bring to your business and state
how you are going to measure the actual results obtained
from implementing the software. Also, have a clear view
of the nature, role, and limitations of the accounting
software program you are specifying. By doing this you
will not set your expectations too high, but rather you
will select the right software for your needs, and it
will then deliver real value to your business.
What software programs
should be on my shortlist?
Again, there is no single
answer to this question, but as a starting point, you
may find it useful to look at some of the better known,
tried and tested programs. These can either be
“non-hosted” programs you manage yourself or “hosted”
programs that the provider manages on your behalf.
Non-hosted accounting
software programs include Oracle (including PeopleSoft
and JD Edwards); SAP; Lawson; and Sage (including MAS
90, MAS 200 and MAS 500); and Microsoft Dynamics
(including Great Plains, Navision, Solomon and Axapta).
Hosted software programs
include Intacct; NetSuite; BizAutomation.com; Aplicor;
and SalesBoom
The bottom line here is to
always remember that you need a program that fits
your specific needs. So, don’t simply opt for one of
the well-known solutions or providers. Identify your
needs first and then do thorough research.
There is no need paying a person to do what
accounting software can do for you.