How to Choose the Right Accounting System for Your Business?

Selecting the best accounting software for your organization is one of the most critical business decisions you face.

Why change your accounting system at all?

Who should consider choosing a new accounting system? Do any of these describe you and your organization?
• You want the freedom to choose among multiple operating systems, databases, and applications as your business expands or changes.
• You are a fast-growing company and need a system that can grow with you.
• You have international requirements that aren't being properly met.
• Your company has outgrown your current system.
• Your processes have changed the way you do business.
• You want an e-business solution with an integrated financial backend.
• You're using DOS software.
• You're using a PC-based spreadsheet (for example, Lotus or Microsoft Excel) or an introductory accounting package (for example, QuickBooks).
• You've got a legacy system—some "old iron" customized for your organization—which people may not necessarily like, but they understand and can use without much effort.
Many Organizations stay with their accounting systems for long and don't evolve due to fear of change and the significant time and resources involved in the same.
What should an ideal system be like?
In order for a system to meet your business needs, it should mesh with your existing business practices and adapt to technological innovations. Ideally a software application should be simple, intuitive and must be able to closely match your business practices.
• Better decision making capabilities
• Improved cash flow
• More accurate information
• More control
• Scalable foundation for future growth
These are the capabilities which your accounting system must enable you with.
The six steps to successfully selecting accounting software, which best fits your organizational needs are:
1. Involve the right people
o There are in general 5 groups of people who should be involved in the selection process
System users
System managers
System customers
System sign-offs
IS Staff
2. Define the challenge
o The questions to ask while defining the challenge are
Which manual tasks would benefit the organization by becoming automated?
Where in the accounting cycle are you experiencing the highest productivity loss and the highest number of errors?
How are inaccuracies negatively impacting your organization?
What information/reports are being requested that currently cannot be created/delivered?
How could your accounting solution integrate with your e-business initiatives?
3. Choose a consultant
o A good software consultant with the right expertise can help considerably in majorly the following steps:
Evaluate and select the best accounting system for your organization.
Save time and money during system installing and subsequent training.
Get the most out of your new system based on the system's capabilities and your organization's requirements.
4. Evaluate application performance
o The key considerations that you must take while evaluating the applications are:
Are you familiar with the company which makes the software?
How long has it been in business?
What are the lineage of products it commands?
o Scalability as a product?
Does the software manufacturer have a family of products that your organization can upgrade to over time in a logical, easy, and cost-effective manner.
Whether the family of software allows for scalability out—can you add elements to enhance the existing software?
o Ease of Use
How simple and easy to use is the software interface, the primary screens where data is entered or otherwise managed?
How easily does navigation take place between modules of the software?
What type of software documentation and training will be provided?
How strong are the software company's technical support and customer satisfaction departments?
5. Choose a software vendor
o No technology Lock-in
You should make sure that your selection does not leave you tied to a particular solution or vendor. Doing so can be risky and uncertain
o A large installed database
If the company you're considering has a large installed base of current users, it's an obvious sign that it is probably doing something right
o Frequent updates
Before you make a purchase, find out if the software publisher has a maintenance program in place that gives you access to updates as they become available.
o An upgrade path
A software upgrade—where you move to a similar but more powerful product—can give your company flexibility as it grows.
o A good technical support team
Questions to ask regarding the vendor's support team include the following:
How many people are in technical support?
How quickly do they take calls from customers?
What are their hours of operation?
What options are available for after-hours questions or concerns?
What charges or service plans are involved?
6. Implement the system
o Postpone modifications
One of the most common mistakes companies make is requesting extensive changes to packaged programs before installing and using them
o Provide good training
Please note that different people within your organization will have different skills and levels of experience with computers; one training class will probably not be right for every system user. Ask your consultant or software vendor for a training plan that will get everyone up to speed (at his or her own level) quickly.
o Keep people informed
Frequent review meetings during the implementation phase will also help people become familiar with the new system. Don't surprise users—let them know when changes will occur. As well, keep your management team involved during the implementation process through meetings, attending the training, etc.
We empower our customers to take the right decisions by calculating all pros and cons in an open and engaging manner. To get the best business enhancing applications for your business, contact us: sales@sagesoftware.co.in

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