Simple software

It is human nature to resist change; we have all experienced this, and I think it is quite common in business. This may be why many organisations stick with the systems and processes they have in place, comfortably using something that is known and understood. However, comfortable doesn't always cut it - especially when it comes to the financial health and long-term success of a business.

It would be irresponsible of me to say installing a new accounting system isn't a major undertaking; it is. There are significant time and resource issues, including the cost to change and the time needed to learn the new system. But, while the challenges of choosing, installing and implementing a new accounting system are many, so are the opportunities - to gain greater control of financial affairs, to make better decisions, and to improve cash flow, among others.

In essence, the vast majority of accounting programs perform similar functions. Naturally, how they do specific tasks varies greatly. Does this mean a business can't go wrong when it comes to choosing accounting software? Not necessarily. There are substantial differences among programs, what kinds of information they deliver, and the companies that create accounting software.

It is a good idea to become familiar with the company that develops/makes the software and find out more about its vision for the future, in terms of its own products and the software industry as a whole.

In order for a system to meet business needs, it should interconnect with existing business practices and adapt to technological innovations.

Ivan Epstein is CEO of Softline.

Scalability is another important issue. Firstly, scalability is just a fancy word for a simple concept: can a company's software expand as the business grows? This means looking closely at whether the software manufacturer has a family of products that can be used to upgrade to over time in a logical, easy and cost-effective manner? And, can elements be added to enhance the existing software?

While it makes sense to consider accounting software that has been created specifically for the general size of a business, realise that not all companies use accounting software “as is”. A number of businesses customise one or more aspects of their software, and I believe those that are most adaptable and attempt to integrate the most customisation and flexibility will receive the greatest benefit from their software solution.

The most common mistake companies make is requesting extensive changes to packaged programs before installing and using them. Instead of trying to make a new system work the way a company used to, wait until an understanding is reached of how the new system works before attempting to change and customise it.

A key issue to understand is how quickly and efficiently the new software can be installed. In general, the longer it takes to install the software, the more costly the installation process becomes.

There is, of course, the option to procure an accounting solution as a service. This innovation allows for a reduction in initial costs, by effectively “renting” software from an application service provider, which resides off-site. This option can deliver significant savings on both the initial investment and ongoing maintenance and upgrade costs, so I suggest the software as a service option should not be overlooked, if it is available.

The hosting model is particularly beneficial for businesses that need to conserve capital or need to get up and running quickly. While this option allows the system to be tested, to determine whether or not it meets the company's needs before making a large capital commitment, be aware that not all service providers yet offer their hosted systems as full systems. Likewise, not all full systems are offered as hosted versions.

Remember that no matter which option is chosen, what remains important is that in order for a system to meet business needs, it should interconnect with existing business practices and adapt to technological innovations.

Ideally, firms want software that's simple, intuitive and closely matched to how they already do business. As we all know, business can be complex, and accounting, in particular, even more so. So why complicate things even further by installing a complicated, difficult-to-use system? What is required is a system that's simple, logical and easy to use.

Of course, it stands to reason that within the next 10 years, almost every company will do business over the Web in one form or another. With this in mind, it's important that the accounting software vendor be robust and versatile enough to offer e-business capabilities and integrate tightly with Web-store software.

* Ivan Epstein is CEO of Softline.