SMEs require more from software

In line with the current economic situation, customers are tightening their belts. I predict this scenario will be with us for some time to come, which is why a financial roadmap has never been more important in the SME space.

Managers need to be able to adapt their company's roadmap instantaneously. The key to achieving this is ensuring the right software is in place.

Despite this spend caution in the marketplace, I believe it's not all doom and gloom as far as the channel credit crunch goes. Impressively, the market, especially that of SMEs, remains buoyant.

Fiscal control and financial discipline, made possible by having the correct accounting software, is more important than ever should the business owner wish to ensure sustained long-term growth and success.

A comprehensive accounting solution will not only show companies where they have been, but more importantly, help them navigate where they are going. This is because of the visibility accounting solutions are now able to offer. By providing both an overview and details, companies can evaluate costs and revenues - and rethink the financial roadmap, if need be.

CFOs are stepping up in terms of hands-on business operations management and demanding more from software solutions and solutions providers. I expect this business trend to keep showing good results. These decision-makers are now looking for applications that can connect business strategy with daily operations through features like performance tracking. IT solutions have to empower and assist them in being actively involved in managing the business.

It's also no good for vendors to approach a company with purely accounting solutions when in fact what the company is demanding is a set of solutions that interact with other departments seamlessly and provide both a holistic and detailed view of what's going on in the business.

Financial surprises are often as a result of the CFO's lack of visibility into operational data and the subsequent inability to adjust plans or reallocate resources timeously.

CFOs are stepping up in terms of hands-on business operations management and demanding more from software solutions and solutions providers.

Ivan Epstein is CEO of Softline

There is some negative global sentiment in the market at present, but entrepreneurs are looking beyond the challenges and discovering the innovative opportunities inherent in our emerging markets.

SMEs need to take a number of factors into account when selecting an accounting solution. I maintain that the starting block is looking at the nature of the business and deciding how the software will further enable this. Then, look at the functionality that the package offers and how much it costs. SMEs sometimes don't need huge packages with a plethora of complicated features. It's not about the "nice-to-haves", but rather about what they really need. There are a number of highly effective, lower cost solutions to consider.

Again, before getting off the starting blocks with choosing a solution, I suggest owners and managers look at where they are now and where they want to be in three years' time, and how the solution will enable this. Be sure the system provides solid ongoing and after-sales service as well as good vertical products. Preferably look for an integrated solution and make it your business to know all of the software's components and how they will enable your business strategy. Ease of integration is the key to feeling comfortable while navigating the software.

If a solution contains an excessive amount of features, you're only adding to costs and making it more complicated and difficult to use. Incorporate features that streamline the operation of the business and make sure the software is easy enough to adapt to its unique business needs.

This is where the reseller comes in. A good reseller should not only be empowered by the software publisher/developer with a solid understanding of the solution, but also have a good technical knowledge of the solution. So, what I'm essentially saying is, research the reseller. Make sure they have a track record with extensive accounting, payroll and technical expertise, with the necessary implementation skills, backup functionality and service levels that go with these before choosing them. Remember, the company will rely on them and their services well into the future.

By finding a solution with sufficient functionality to support the company well into the future, it will not only be assured of far greater fiscal discipline, but have laid a firm foundation for financial discipline and, hopefully, success.

* Ivan Epstein is CEO of Softline.