Preface: Accounting software solutions for businesses are a key financial decision. Businesses are yoked with the software decision they make. This blog outlines the value of making that decision appropriately.

Choose an Effective Solution When Implementing New Accounting Software in your Business.

Choosing an appropriate accounting software solution for your business is like buying the right horse. The opinion on the right choice is different for everyone. Implementing appropriate accounting software in your business requires thorough software due-diligence….due diligence on features like user friendly-ness, custom reports and understanding of current and future scalability. The cost of accounting software includes more than software licenses. Implementation requires training staff, migration of data, and system optimization. That cost can often exceed most financial forecast expectations. More importantly, errors in implementation, and cost cutting often lead to ineffective training and/or implementation, can producing months of skewed financial reports, with management working without accurate financial instruments, resulting in lackluster financial reporting or performance for the period.

Accounting software should have a track record of working successfully for your industry. If you’re a small cash basis construction business say QuickBooks will probably work just fine. You can track projects in say Excel and invoice customers, track expenses paid, and business performance with ease. Say you’re a mid-level business ($7m+ or revenues), you will want to migrate with software that can manage workflows, and business intelligence on manufacturing and/or distribution. If you’re thinking QuickBooks with modules, implementation is increasingly more complex than simple installation of the software. There is no need to be dazzled with software features you will rarely use for your business. When you shop for software focus on practicality. What yearly upgrades are available? What are the upgrade costs? More importantly, what customer service backs the software to promptly answer questions or solve problems?

To choose the right software for your business, you must know what you want, and more importantly need, the software to achieve; the larger the business, the greater the software due-diligence required. Too many companies are yoked with accounting software that is not optimal. Whatever the revenues of your business, large or small, if you have the freedom to migrate software, get the guidance you need to make that journey successful. Develop a software research team and collaborate for an effective software solution. An independent software consultant for larger business is worth the investments.

Simply because your business can maybe afford whatever software you choose to purchase, doesn’t say spending more makes sense. Again, you need practical software that works well, and provides accurate reports. To be realistic, effective migration of accounting software can easily begin at $10,000 and realistically $35,000+ for a business with $3mm or revenues. A business with $20m of revenues could see all-in costs exceed $120,000. This includes setup of inventory modules, reporting methodologies (tracking employee hours, production cycles, sales commissions, internet marketing), data migration and training employees.

The right software choice should involve the appropriate time for software-diligence,  this will help you understand your organizations processes, and reporting in a clearer light. Beyond software demonstrations, talk referrals with users of the software, with a user history of more than year. You want to ask things like how easy was it close the year, and or migrate data. Also request to talk with users in your industry. For instance if you’re considering a point-of-sale system, you may even want to travel to visit a business that has implemented the system for an effective software due-diligence discussion. Given the cost of accounting software migration, you will be yoked with your decision. Invest the appropriate time to make that decision a good decision.

Summary: Accounting software migration is a key financial decision. Often in small businesses, management does have prior experience with software migrations, and does not understand the importance of the right choice, or the due-diligence steps to effective solutions. If you’re thinking of migrating accounting software for your business, begin with forming the right team to successfully collaborate on the right solution; and maybe even include an experienced and trusted software consultant(s).