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1.
Become
Knowledgeable – To get started, it is always helpful to educate yourself about the accounting software packages
that are out there. (We
know that the reality is that nobody has enough time to fully
do this.) The Internet can help by making it faster and
easier to locate information. But you may also choose to
attend independent seminars, vendor sponsored seminars, and
trade show exhibition booths, and read newspaper and magazine
articles.
2.
Make
a List of
Potential Solutions - Make a list of all of the products that
might meet your needs. Include products that you are aware of,
products you read about, products you hear about, products
listed on the Internet, etc. If possible, talk to your
competitors and ask them what they use and add these to the
list as well. So that you can evaluate the products
side-by-side, you may consider preparing a more elaborate list
– a spreadsheet listing key information for each product.
For example, your spreadsheet might include information for
modules, pricing, platform, customization capabilities,
certified payroll, retainage, time and billing solution, and
bar coding – or whatever you determine is most important to
your company. The objective here is to focus just on the most
important issues and not be blinded by small insignificant
shortcomings. This matrix will also be helpful in sharing
information with others who may have input into the ultimate
decision.
For
each product you are evaluating, begin tabulating a list of
the features and facts that impress you about the company, the
product, and the reseller. For example, you may list key
awards received by the product, the fact that the company
provides great support, or describe a great feature that you
think your company would really benefit from. Continue to add
to this list as your evaluation continues.
3.
Eliminate the
Obvious Poor Choices - Start to eliminate potential
products due to missing modules, missing key features, or
because they are simply too expensive. Cross them off your
list and notate why you did. Selecting
the right package is mostly a process of eliminating the wrong
packages. Generally, you can eliminate many
products at this stage. Continue to eliminate products
throughout the entire evaluation process.
4.
Evaluate
Product Features - Next, make a complete listing of the
unique features that your company requires, and
compare this list to the features provided by
each product. There are several good software
programs that aid you in this process. By
far the least expensive and most comprehensive
program on the market is The Accounting
Library. This product can be purchased for
$395, $995, or $1,295 by calling 800-272-4085 or
by clicking
here. The Accounting Library lists over
4,000 accounting software features. Simply place
a checkmark by each feature that your company
needs, and the Accounting Library will rank the
top 150 products according to the product that
best meet your needs to the product that least
meets your needs. You can also print a "Missing
Needs Report" that will summarize the features
you need that are missing from each product.
Based on your review of the features, you can
easily eliminate obvious poor solutions from
further consideration. I highly recommend this
product to potential customers as well as
resellers and consultants.
5.
Visit Internet
Sites – Next, visit the Internet sites for each
accounting software product remaining on your list. If your
list is still lengthy, pick your best four or five
options and concentrate on them for now. Print out the
information, organize it in a binder, and study it in detail.
Use a highlighter to highlight the key points you identify as
it is likely that someone in your organization will probably
review your documentation at some point the future.
6.
Request
Brochures
and Evaluation Code – Next, call each accounting
software publisher and request their latest brochure
information and an evaluation copy of the software. Watch out,
this will trigger accounting software sales representatives to
come calling on you.
7.
Identify Top Resellers - By far, the number one
complaint in the accounting software industry is "poor
resellers". Because this is the single-most important
element in the successful implementation of an accounting
system, you need to take extra care to make sure that you
identify the best resellers and consultants. If you call the
company and ask for a referral, the accounting software
publisher will typically pass you off to the next reseller on
their list, and you may get stuck with a less experienced
installer. Don't make this error. Here at Accounting Software
Advisor, we have published a complete section devoted to
helping you understand how to find, evaluate and select the
right reseller to meet your needs - we recommend only those
resellers who have passed our rigorous due diligence
standards.
8.
Product
Demonstration – By
this point, hopefully you have identified the best resellers
in your area for the products you are considering. Next, you
should arrange for these resellers to demonstrate their
products to you. They should be able to do this in about 2 to
4 hours. They should take time up front to ask you extensive
questions about your company and your needs. This will help
them better understand what you are looking for and they can
then tailor their demonstration to your particular needs. (If
they don’t take time to talk to you up front, watch out -
you are probably dealing with an inexperienced person.)
Allow them to make their pitch - they all have a canned sales
pitch, and by damned, they will all make you endure it.
Hopefully the reseller will use live software to demonstrate
the product to you, but sometimes slides and overheads are
used as well. Take the demo for what it is – a sales pitch.
Before it is over, hit them with your toughest questions. Make
sure to ask them about their available time, their
installation methodology, their track record for getting the
systems up and running properly on time, and a list of 3 to 5
references whom you can call to check up on their work. You
may even ask them to install an evaluation copy of the product
on your computer so you can further evaluate the product on
your own time.
9.
Hands On
Testing – If you received code from the accounting
software vendors, this would be a good time to evaluate it.
Keep in mind that you will be testing software that you do not
know how to use. If you are unable to make something work the
way you want it to work, don’t assume that it won’t do it.
(Most software
publishers receive
thousands of suggestions to add features that are already
present in the system.) Simply write down the problem and
address it with your reseller the next chance you get. Make
sure to update your list of good and bad points for each
product. Include subjective points about performance, look and
feel, ease of use, etc.
10.
Call References
– At this time, call the references supplied by the
vendors and ask a few simple questions as follows:
1.
Do you use XXXXX Software?
2.
When did you install it?
3.
Who performed the installation (company and name of
reseller)?
4.
Did they do a good job and install the system in a timely
manner?
5.
Are you satisfied with the product?
6.
What problems have you had with the product?
These
six questions are usually all you need, as they will flush out
any problems with the resellers or the product. Be careful to
make sure that the reference is being honest with you. Some
references will not say anything bad in fear of a lawsuit.
Others may not really be valid references, instead they may be
a brother-in-law or close friend. Therefore, be on the look
out for suspiciously short responses or people who are not
able to describe specific details of the engagement. If you
reach 3 consecutive good references that you are comfortable
with – then in our opinion, that product and installer have
passed the final test. Also, if you receive negative feedback,
it may be helpful to try to distinguish between a “Good
product/Bad reseller” versus a “Bad product/Good
reseller” situation.
Decision
Time
At
this time, you should be in a good position to select an
accounting software package. If you have more than one package
left on your list, make a decision based on guts or instincts.
If you still can’t decide, choose the product that is
easiest to use on a day-to-day basis, the product that is
built on top of the most promising technology, or the product
that offers the strongest reporting. Otherwise, flip a coin.
We believe that the actual price of the software is not really
relevant (within 200% or so). The real cost of accounting
software is the time required to get it up and going and the
time required each day to implement manual work-around
procedures to compensate for missing features and reports.
Conclusion
The
reality is that the apparent winner may reveal itself long
before you complete all 10 steps described above. Still, it is
a good idea to run through all of these steps with that last
remaining product just to be on the safe side. Some companies
can make this decision easily, with just a 30-minute
conversation with a consultant. Other companies must endure a
three-month ordeal to arrive at the best choice. You alone
must make the determination as to how much effort is warranted
to select the best accounting software package to meet your
current and future needs.
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