Accounting software has been gaining momentum in recent years. Companies using these software vouch for their efficiency to handle loads of accounting functions, but do not add to the costs unlike hiring a group of trained and licensed accountants. Basically an accounting software works like a true accountant who handles accounts payable, accounts receivable, payroll and trial balance. In addition, the software can accommodate other functions are handled mostly by staff. It also serves as an accounting information system. Accounting software is varied because their appropriateness depends on the income or the specialties of a company.
Software categories – Low End
software in this category only perform functions of general business accounting. These are cheap software application. Best to start businesses.
- Mid Market
The software classified in this category are capable of serving the needs of multiple national accountancy standards and allow accounting in multiple currencies. The supplements come in these products are actually integrated or add-on management information systems and perhaps facing one or more markets.
- High End
Software included in this category are among the accounting software more complex and costly business. Usually, they are part of a broad set of software often known as Enterprise Resource Planning or ERP.
Vertical Market Softwares assigned to this are those for specific types of business because the characteristics necessary for an industry that is already built in
2. Architecture And
Installation It is important to undergo a selection process, because you have to find the right product. , Which coincides with their business needs. This can be tricky, but keep in mind that the installation of a new accounting system is very expensive and making the wrong choice you can end up broke. Now you've made the biggest mistake of his life, but there is more room to mourn over spilled milk. Think about it in a different light; Perhaps the purpose of this mishap is to give the opportunity to do a review on that business processes. You may need to redesign your process. But before we get excited about all this renewal, there are some steps.
- form a technology advisory committee (TAC). This committee will be in charge of the entire operation – from product selection to implementation. Members of this committee should come from the major divisions of the company so that all facets of the business may be considered. However, group members should be limited to seven members. TAC must be a senior manager in the group to provide the authority, manager of the accounting department and a representative of the department of information technology. As much as possible involved your managers.
- Prepare analysis of needs. First, ask each head of division to prepare an analysis of your department that includes all the things they do and therefore classify the most critical of the mundane tasks. To support this list, ask them to draw flow charts to diagram how each task is performed. This will allow the view of how things flow within the organization. This will help you identify if all these functions can be performed by the accounting software of your choice. Much better if samples of each form will be collected and reports made by his former software. Also they include systems outside your software that do supplemental duties. All these paperwork and analysis will help in developing a definition of requirements – a detailed document that defines what your business needs from an accounting application. As soon as you get these things done, you now have a complete reference guide for your buying decision.
- Ask advice from an independent consultant. This person will guide you all the way through the process. But just make sure that you are not connected to both providers either considered or business lines will all be sounding a sales pitch. After getting a stranger to see things objectively, you can now ask someone say maybe close with the supplier and who have used the software several times.
- Talk with your current provider. Now, this is the time to consult his former software provider, except if you are buying a new one. Present the detailed analysis you just made and ask if an upgrade would be needed to meet the needs of your company.
4. Develop a budget
- In preparing a budget consider other expenses necessary for the software installation, and hardware requirements.
– Be aware of how much the company can afford to spend and plan time.
– Prepare a matrix calculation list of the key product features that impresses you. Start eliminating obvious bad decisions.
5. Final evaluation
- Prepare a formal Request for Proposal (RFP) or a less formal request for quotation (RFQ) provider.
– Request a product demonstration. Do not allow a canned demonstration. You should see the software in action live.
– Ask me a list of references you can call as former and current customers. Be aware of those who can not answer questions about the product directly.
– Undergo a prototype test whether your systems and data are compatible with the software and identify problem areas.
– Visit the seller or his agent.
– Check your contract before making a final decision. Ask a lawyer to do so. Support the contract or include all agreements discussed, the RFP or RFQ and documented communications.