Time for new accounting software? Some things to think about…..

Are you considering changing accounting software? It is a daunting task. Your current system has gotten outdated and hardly anyone is supporting it anymore. Maybe you’ve gotten too big or your transactions too complex. Or maybe you are working harder than the system, to generate reports needed by management. I’ve been through a few of these conversions and they are no picnic. They’re brought about by all kinds of different factors and it’s rare that you have someone on staff that has the experience of changing software.

Let’s take a look at some of the things to think about before making that jump. There are times when a change is absolutely necessary, but sometimes you can fall into the “grass is always greener” mentality and make a decision before you’re ready.

Product Support
Is the support for your current software becoming extinct? Has the vendor stopped developing necessary upgrades? This may make the decision a no-brainer. If for whatever reason your current software cannot be supported in the future, it’s definitely a good idea to look at a new product. It is not a good idea to have important data in a program that cannot be supported by professionals. Also, make sure to keep this in mind when choosing a new vendor. You’ll want to make sure they will be around for a while so that the support problem is not repeated later.

Staff Team in Place
Make no mistake. It is a huge strain on staff resources to make a switch in accounting software. Just changing a fixed asset module or something small may not be a big deal, but switching accounting software takes a committed effort from your staff to be successful. You will want to make sure you have the staff team in place that has the competence, stability and patience necessary to carry out the conversion task. I say competence because someone on your team must possess the basic accounting knowledge that is independent from just working with the old software. Sometimes people may know the software really well but not have a great understanding of accounting.

Also, I’m a big believer in staff stability when it comes to switching software. It’s a hard one to predict, but you don’t want to jump into this if you know your core team won’t be around for the near future. If they won’t, you may want to involve others within the organization that have longevity and are ready to evaluate and implement the new software.

And finally, patience is a required commodity in this process. We’ll talk more about patience in the next blog entry when we look at the actual conversion process more closely, but in short, your staff must have patience for a conversion to be successful.

Time and Money
Simple, right ? – These items probably represent the two most important aspects of the decision. Good software is not free and you’ll want to make sure the switch is financially feasible before going forward. If you’re going to request the money from your supervisor or Board, you will need to have information on how money will be saved or productivity improved by making the purchase. Remember, there are also costs associated with keeping your current system.

Don’t forget the time involved can absolutely not be underestimated. If you ignore the rest of this blog entry, do not ignore the time that is needed to effectively carry out a conversion. If your staff already has big projects on their plate, you will want to consider that before making a move. Superman and Wonder Woman are not on your payroll so be prepared to reallocate certain tasks. If you ignore the time demands and pretend that your staff can accomplish this in their spare time, you’ll be setting yourself up for failure.

Will New Software Solve Your Problems?
Sometimes the software can be an easy target for frustration and that can cause you to react quickly. First, check with your current vendor to see if there are any upgrades or customizations that can help with your reporting issues. It never hurts to ask and there may be a cheaper and simpler fix.
There may not even be a product on the market that will meet your expectations at a reasonable price. Unfortunately, your needs may not all be met by anything currently available and you’ll want to factor that into your decision.

You may be convinced that your software should fit around your processes, but there are times when your processes need to be improved or changed to fit the software. I’m not suggesting you change the core processes that define your internal control structure in order to accomodate your software, but compare this to my performance on the golf course, I can’t blame the golf clubs for everything. Overall, you’ll want to be sure that a change in software will in fact increase productivity and efficiency in your organization and there are not other issues holding you back.

In summary, all of these items are dependent on the size of your organization and your general needs. I would definitely recommend reviewing every option before making a decision. Switching software can be a great improvement for your organization or it can be a nightmare. The difference is highly dependent on the diligence taken prior to the decision. In my next entry, we’ll take a closer look at the implementation of the conversion itself. Call me, 817-332-2301, if you’d like to talk through this.