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Choosing a New Accounting Software

When the time comes to switch accounting software for your business, where do you turn? There are hundreds of publishers ready to take your money – and there are thousands of system implementers also ready. There are hundreds of products to choose from. There are hosted solutions, web-based solutions, pc-based solutions, MAC solutions – the choices are enormous.

History shows that first-time buyers typically let price be the deciding factor. In general, history also shows that companies spend between one and three percent of their annual revenue on a new ERP system (I personally believe that the number is lower).

Many larger businesses start with a Request for Information (RFI). This RFI states what is required in the new system and allows potential vendors to submit answers if their system meets the minimum requirements. Software is divided into three categories – a) ” off the shelf” (QuickBooks, Peachtree); b) configurable (MAS 90, Navision) and c) customizable (MAS 500, Dynamics –GP). The RFI will request what is incldued in the standard product and what, if anything, is a custom or third-party solution.

There have been many good articles written on how to choose the right distribution software or how to choose the right manufacturing software. It helps to first determine the type of business that you have. Are you a distribution firm? A firm that bills for its time and expenses? What type of manufacturing business do you run (process manufacturing, discrete manufacturing, make to order, etc.)?

Once you determine where your company really fits in, then you can do Google searches on key terms. These key terms will inevitably point you to a wide array of solution. You will also come across companies that specialize in helping people find partners for the solutions that they want (www.findaccountingsoftware.com, for example).

You need to determine a budget, the number of concurrent users, and the modules that you will need. Your prospective partners will also assist here. Remember, a quality partner is a solution consultant. What this means is that unlike traditional sales of not caring about why or what, consultative selling means that they have to ask you a long list of questions, including an on-site analysis, just to see if their solution might fit your company. The sales cycle for a new ERP/Accounting system can last anywhere from three to six months (for more complicated solutions, nine months or more).

Second-time buyers surveyed revealed that price was not the determining factor, but instead the partner had been raised to number one. This partner is extremely important when buying your new system. Will they be there after the sale? Will they be there after you go live for support? Do their team members understand your business? The publisher is equally important. Do they release new versions often? Are they financially strong? How many installations of the product do they have?

As you can see, buying a new system takes time, thought, and consideration. You have to be involved as much as the partner. If you expect or let the partner do all of the work, you may end up with a solution that is not the right fit. Do not let the price be the deciding factor – find a great partner (interview at least two to three), find a great publisher (see two to three demos) and ask a lot of questions – it will save you time and money in the long run.

See also: Top Ten Criteria for Selecting Accounting Software (.pdf)