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 arent 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.
Youre using DOS software.
Youre using a PC-based spreadsheet (for example, Lotus or Microsoft Excel) or an introductory accounting package (for example, QuickBooks).
Youve got a legacy systemsome old iron customized for your organizationwhich people may not necessarily like, but they understand and can use without much effort.
Many Organizations stay with their accounting systems for long and dont 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
oThere 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
oThe 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
oA 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 systems capabilities and your organizations requirements.
4.Evaluate application performance
oThe 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?
oScalability 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 outcan you add elements to enhance the existing software?
oEase 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 companys technical support and customer satisfaction departments?
5.Choose a software vendor
oNo 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
oA large installed database
If the company youre considering has a large installed base of current users, its an obvious sign that it is probably doing something right
oFrequent 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.
oAn upgrade path
A software upgradewhere you move to a similar but more powerful productcan give your company flexibility as it grows.
oA good technical support team
Questions to ask regarding the vendors 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
oPostpone modifications
One of the most common mistakes companies make is requesting extensive changes to packaged programs before installing and using them
oProvide 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.
oKeep people informed
Frequent review meetings during the implementation phase will also help people become familiar with the new system. Dont surprise userslet 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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