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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. |
