The initial recognition that there is a need for change, including a full review of the current system, can itself be a long process. Then there is the task of selecting the right package for your business from the vast array on offer - making the wrong decision can have detrimental effects on your business. Here's some helpful advice on what you should be looking out for throughout the process.
Stage One: The Strategic Decision
Even the smallest organisation now depends on accounting software packages to help them manage their business efficiently, and inevitably the time comes when the software that is relied on no longer measures up. It can take a while for the signs to be recognised. Whether it is external market forces, business growth or lack of functionality that is driving the change, a strategic decision needs to be made about what to do next.
This is the time to sit down and really think hard about your business. Think about the future. What is your 5-year business plan? It is essential to be clear about what your needs are now and what they will be in a few years time. You don't want to have to make another change a couple of years down the line.
Think about your competitors. Take a step back and view your business system from a competitive perspective. Which accounting software packages do your competitors use?
Have they customised their choice of software to maximise the benefits for your industry? Think about your current system's shortfalls. What areas are letting you down and what could be improved on? What effect would changing these have on your business?
Key Questions
Below are some key questions to keep in mind during the selection and evaluation process:
What are the main problems you have with your current accounting system?
What is your budget and time scale?
What do independent internet sites and articles in magazines suggest?
What type of software will match the size and requirements of your business?
What do you need now, and what will you need in three years time?
Stage Two: Selection Process
This can be such a daunting task that some people shy away at this point and make the decision to stick with what they already have. However, once you have recognised the need for a change, it is important to follow this up. With careful planning and some helpful advice, selecting the right package for you and your business can be straightforward.
There are two key relationships to consider here: the relationship with the product itself, and the partnership with the software provider. Both can be fundamental to the success of your decision.
Now that you have identified any problems that need addressing, you can begin to look at what is available, keeping in mind the product and partner relationships at all times. Too much emphasis on the product and you will end up stranded when system problems arise. Too much emphasis on the partner will leave you with a system that does nothing you need it to. Be sure to keep this balance in mind when reviewing your options.
Thorough research is essential. Make sure you become knowledgeable about what is on offer, what the downfalls of products are and how they compare to others in the market place - only then can you confidently make an informed decision about the right package for you.
Independent assessments are invaluable to get a true picture of performance. Ask a consultant for tips and advice - they are more likely to have had experience of a variety of packages, and can offer professional recommendations. Online reviews can offer useful comparisons and unbiased opinion on the functionality and reliability of the products available.
Make sure that you plan now for future growth. Taking into account your projected requirements in one, three or five years time will save time and expense in the long-run. Does the solution you are considering provide an easy upgrade path offering a step forward, or is it like a brand new installation? Does the software have the ability to grow with your business?
Once you have researched the options, you are able to make a shortlist of three or four providers whose product you feel will meet your needs. Contact them and request a demonstration of the product. How the vendor reacts this request is potentially very revealing about their company philosophy. A good sales manager will first analyse the needs of your company before discussing potential product solutions. If they do not take the time to understand your needs, how can they hope to address them?
Good vendors will aim to understand the way your entire business works so that they can offer a solution structured around your core business processes. By discovering your requirements (including those for documents and reports), the vendor will be able to properly address your strategic needs. Steer clear of any vendor that does not undertake a thorough needs analysis before offering a solution.
Before the initial meeting, try and find out some background information on the track record of both the product and the vendor - including their innovation ability, awards or accreditations that have been won and any proof of their success. Going into the meeting with some background knowledge will give you a good base from which to assess their presentation.
Essential Questions
Write five essential questions to ask each vendor you have short-listed. Examples could be:
What database platform is the software built on? (take into consideration the security, ease of integration and scalability)
How easy is it to access the information held in the accounts? (real-time information is essential to allow any business to make informed decisions)
Will the software grow with your business and what is the upgrade path?
What track record does the provider have in implementing similar solutions in the same market sector / industry as you?
Be sure to avoid the five mistakes companies make when selecting accounting software:
Not doing enough homework
Misunderstanding the benefits of automation
Ignoring hard-to-quantify benefits
Passing the buck
Thinking accounting software is only for accountants.
Stage Three: Planning & Implementation
Once you have decided on a product and a partner, you will need to work together to draft a project implementation plan. It is vital that you take into consideration the time and availability of your staff that will be involved in the implementation. It is also critical to appoint a key contact in your organisation who will act as the key point of contact to the project manager from the solution provider. Having an 'owner' in each organisation will ensure that issues get resolved quickly and key design decisions made which help the project keep moving in the right direction.
An implementation project, no matter how small, should always be broken down into stages to allow work to be structured efficiently and clear agreement to be reached at each critical stage to move forward or not. These can change according to different project sizes - smaller projects may combine some stages into one, but in general they can be summarised in the sections below:
Initiation
At the end of the initiation stage of a project, the following elements should be in place:
An agreed project plan, with target timescales, resources and deliverables
An agreed set of responsibilities for the high level tasks on the plan
An agreed set of business objectives and requirements which the project should deliver.
In most projects, an initial installation of the software with test data will also take place at this stage to enable business processes to be worked through and any potential problems encountered early.
Design
If your business requires a solution more complex than the completely standard 'out-of-the-box' software, then there is probably an element of design work to do. This may be as simple as configuring in-built options to work in a specific way, all the way up to a completely bespoke module or software application to support a particular area of your business. Either way, a statement of how this element should work should be documented and agreed between you and the software provider.
Clear documentation (however short and simple) coupled with a process of sign-off or agreement helps enormously in reducing risk in the project and making sure the level of understanding is where it needs to be on both sides.
Build
This is the stage where any elements of the solution which need to be created by the supplier are developed or written. This may simply involve writing specific reports or creating branded document layouts, but may also include some software development. Whatever the deliverable is, always ensure that regular checkpoints are set up, particularly if the development work is significant. These checkpoints should be set up to enable you to assess the progress made on the work. As in the previous phase, documentation again is essential in reducing problems later on and making sure that your supplier understands your requirements clearly.
Test
Whether the solution is simple or complex, there is always a stage where its operation should be tested against your business objectives. This is something which you should take responsibility for, although the supplier should be willing to provide any help and support that is needed. The type of testing will again be dictated by the size and complexity of the solution, but a structured approach following a documented plan will ensure that all critical areas of your business are covered and the chance of 'surprises' emerging after the system has gone live are minimised.
At the end of the day, no-one knows your business better than you do and this is the best opportunity for you to avoid any potentially costly issues while the system is not yet supporting your day-to-day business.
Training
Any high-quality solution provider should be able to offer you a comprehensive and tailor-made training programme to suit your type of business and the skill level of your staff. The approach to training is a good indication of the quality of the supplier as it should be treated as a critical element of the project plan. Good training also requires a different skill-set to other types of consultancy, so having a different person who specialises in this element of the project is often a good thing.
The quality and timing of the training programme will ultimately dictate how well your business takes advantage of the significant investment you have made in the new system, so it should never be treated as a last-minute consideration.
Implementation & Post-Implementation
The 'Go-Live' date and cutover process should undergo a more thorough planning process than the rest of the project. Based on your business type and the nature of the data you are transferring from your current systems (if any), the cutover plan should ensure that disruption is minimised and the new system is being used straight away.
Your supplier should offer extended consultancy during this period and demonstrate a good hand-over process from the project team to the support and customer service team within their organisation.
Once the implementation is complete and you have 'settled in' to the new system, a project review will ensure full acceptance of the software into your business. This post-implementation review will check that the product is continuing to meet your needs and will address any areas that still need some 'ironing out'. Supplementary training may be necessary at this time to ensure that you get the most out of your system.
