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Selecting new accounting software requires more time than most businesses realize. To complete the proper amount of research and assessment of various programs, most business owners should expect to spend weeks, not months, instead of days or hours. However, once the right solution is identified, the improvements that it can help the company realize are often well worth the time spent selecting the software.

One of the first things you’ll do when selecting new accounting software is to look at the processes that your business currently uses and see if there are ways to use software to make those processes more efficient. Many companies use the implementation of new financial software as a good time to also change some processes to gain more efficiencies from the new software’s extra features. If you consult with financial software reviews, you’ll see that the market for accounting software is roughly divided in to four segments: entry-level, small to medium scale business, small to medium scale enterprise, and enterprise resource planning.

A brief overview of each segment follows.

Entry level software is designed to work best with small businesses (those with 20 or fewer employees and less than $5 million in sales). Roughly 5 million companies in the US meet the profile for those that are best suited for software within this segment. This is the largest group of companies and is often the reason that accounting software guides exist – to help smaller businesses choose new software.

Small to Medium Business (SMB) software is designed to work best for companies with $5 to $100 million in sales and no more than 100 employees. This is the second largest market segment and estimates say that about a half a million companies in the US could benefit from new software designed for businesses of this size.

Small to Medium Enterprise (SME) software is the next step up and is designed for even bigger companies – those with up to $500 million in sales and up to 500 employees. Approximately 17,000 US based companies fit this profile.

Enterprise Resource Planning (ERP) software is designed for the largest companies and can accommodate well over 500 employees and billions of dollars in sales. The number of companies that fit in to this segment is fewer than any other segments, although some estimates have claimed as high as 17,000.

These segments are only roughly defined guidelines for looking for new software. These are not rules that must be followed. Some businesses that fall in to the the SMB category may find that ERP software is actually best for their applications due to it’s additional flexibility or other features that the company may need. In this case, they should opt for the ERP software.

When selecting software, make sure you know what you require from the new accounting package and keep those requirements in mind. This will allow you to avoid purchasing modules or features that you do not need in the new software. Overall, software designed for larger and more profitable companies come with more capabilities. In some cases these capabilities can be beneficial, but it is also important to note that this is not always true. At times, additional capabilities that are not used can actually slow down the software.

At the same time, purchasing software with too few capabilities can also create problems. If you purchase software without a module that you need, you may be forced to use an outside application to run that process, which can cause headaches as well as present problems with compatibility that can add costs to the overall project.

Although modern software is definitely “smarter” than software developed years ago, many businesses still stumble when implementing new accounting software because they believe that the newer software can simply be installed and everything will begin operating more smoothly. The reality is that selecting the right software is only half the battle – it must be implemented properly to attain the benefits that it advertises. Each software application is unique and therefore must be implemented differently, but some common practices exist for making any financial software implementation smooth.

Prior to purchasing any software, the business should do proper research in to a particular applications features and functionality to ensure it is the best for your applications. After identifying the right solution, the process of successfully implementing it can be benefited by adhering to the following guidelines, all of which should be taken in to consideration before even looking at new software.

Create a team of individuals responsible for overseeing the entire software process – from identifying needs to picking software to implementing it. The team needs to have representation from all departments that are directly effected by the company’s accounting software and should be led by a manager capable of taking their thoughts in to consideration before making any decisions.

Additionally, managers from every division in the company should be consulted about the new software and its implementation. Ask these individuals to create a list of critical factors that they see – ways that the new or old software has an influence on the financial activities that department is responsible for. These lists should be given to the software selection and implementation team to make sure all aspects of company operations are considered in relation to new software.

The software team or other representatives within the organization should also create a flowchart of the company’s accounting activities. Looking at an accurate flowchart will allow decision makers to identify bottlenecks in the process and look for software and implementation techniques that can help to alleviate some of these bottlenecks, resulting in more efficient operations.

When working through software selection and implementation, it is also advantageous to have samples of all forms, reports, and documents that the company uses for accounting purposes. Knowing the purpose of each form and report will assist the team in configuring the new software to best work with existing practices and may shed light on ways to improve current documentation with the new software’s additional capabilities.

One common problem to successfully implementing new software is that some companies, especially smaller organizations, simply do not have the proper time and resources to dedicate to ensure the process is done correctly. If you find yourself in this boat, it may be worth the investment to hire an independent consultant to head up the software selection and implementation process. Yes, they will cost money, but the benefits of having the right software correctly configured in a shorter time frame are often well worth the investment.

Finally, some companies are not in need of entirely new software as much as they need a more current version of their old software with new bells and whistles. In this case, speaking with the software vendor is often a great way to ensure you get exactly what you need and that the upgrade is done properly.

Construction management software is only as good as the people that use it. You can have the latest, most powerful software available on the market, but if your employees cannot use the software properly, you will not get the full benefit of the software. This can be a challenge when you switch to a new software platform as veteran employees may be reluctant to adopt the new software, feeling that the old software was adequate. To help prevent these problems and maximize your investment, there are some things you can do to encourage your staff (new and old) to “play nice” with the new software.

Everyone at the company must understand the benefits that the new software will provide for the company and themselves. Before you make the transition to new software, speak with everyone in the company about what the new construction management software will accomplish for your company and how it will make things better for the company. It is also important that employees see how the software will benefit them on a personal level in relation to doing their job more accurately, faster, etc. Studies have proven time and again that new software is more successful in companies where all users understand the benefits. Your worst nightmare is a group of employees who think the new software will only make their jobs more complicated and difficult.

Conduct extensive training. The best way to combat staff reluctance is to provide the users with the best training possible, so that they feel well-equipped to use the new management products. Provide a way for the staff to seek additional one-on-one training if they still feel uncertain, and distribute resources such as support phone numbers, print manuals, or online resource links.

It is also important to get feedback from the software users. Once they begin using the new software, ask them about their likes and dislikes of the new system. You may identify ways to use the software better. At the very least, your employees will feel some power in the new software move and will know that their opinions are valued and appreciated.

As your staff becomes more confident with the new technology, begin to recognize achievements. Not only will people begin to realize some of the benefits that were discussed prior to the new construction software being implemented, but they will also be encouraged to expand their technological capabilities and confidence in using the new software.

Stay positive. Avoid speaking negatively about new software in front of your staff. Let them see you responding positively and making your best effort to utilize the software most effectively. Model the behavior you would like for them to show when working with the new system.

Switching to a new software system can be stressful and complicated. It is normal for some employees to resist the change but as a manager you must respond to this resistance with patience, confidence, and positive support. After some time getting used to the new software, most employees will come around to see why the new software was chosen and will begin to work towards the benefits that you hope to gain from your new construction management software.

The layout of an accounting software package is much more important than the aesthetic benefits that it provides. Although some argue that accounting software reviews give too much attention to the layout and user interface of a software package and should pay more attention to the software’s functionality, do not overlook the importance of having software that is easy to use and understand.

In fact, having accounting software with a clean layout that is easy to use is probably more important than other software that the business uses and should be one of many factors that you consider when choosing new software.

Having a clean layout is important because accounting is complex and difficult to understand – especially for individuals with minimal accounting experience. Even the terminology – credits, debits, assets, and so on get confusing to some and can be the kind of things that turn people off from accounting, despite the importance of it. This is why it is important to find software that makes entering information easy and possible without knowledge of what kind of transaction was just completed (in accounting language). Once the info is in the system, the software also needs to be able to generate reports that can be understood by someone without an accounting background.

This is not to say people that use accounting software are dense. Quite the contrary. However, in most cases, businesses do not want to spend time doing something that is complicated that they may not completely understand if there is software available to do it for them. Reviewing financial reports is imperative to success of a business and is an ability that all companies need. Having to create those reports, however, is not the kind of thing that most companies want to spend time on as it doesn’t contribute directly to their profitability.

For most small businesses, therefore, the ideal accounting software is something that is easy to use but powerful. Information should be easy to input and reports should be easy to understand. The heavy lifting that is done in the background by the software is important in the sense that it must be done correctly (which it will be) but it is not important that the business necessarily understand how those calculations were made.

It is also important to note that a clean interface does not imply software that is less powerful. In some cases it does, but it does not have to. Instead, a clean interface should make the software easier to use and translate in to more efficient analysis of costs and revenues.

For example, most accounting software will include an invoicing feature. Some software will begin with the accounting ledger and give users the option to create a custom invoice from the ledger. However, this is not the easiest method to complete this task for most users.

An easier manner to create the invoice is to create the invoice and have the software automatically update the ledger. Therefore, as the invoice progresses (issued, sent, paid), the ledger will automatically be updated by the software. Since the invoice will need to be processed anyway, eliminating the need to interface with the general ledger saves time and makes the entire process more efficient.

If you’re searching for new accounting software, check software review sites and look at screen shots of the software’s interface. This should give you a good idea of how easy to use the software will be for you. If the interface looks complicated, chances are that it is and you should look for a better solution.

The goal of getting a new accounting software package should be to save time, and consequently money. Therefore, the easier the software is for you to use, the less time it will take the more you will benefit from the software.

Finally, keep in mind who will be using the software. If you find the interface simple but know that you won’t be doing the majority of the interfacing with the software, get input from the end-users before selecting new software. In nearly all cases, new software will require some training, so remember to factor those costs in to your budget.

New accounting software should add value to your company. Make sure that you choose a package that will not be so cumbersome to use that it takes time and money away from revenue-creating tasks.

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Professional software implementation can get your nonprofit’s new accounting system off to a great start, or fix a world of existing software woes. Our implementation and training processes for nonprofit accounting software are designed and built from over 15 years experience. (MIP) delivers premier Windows fund accounting software designed to meet the challenges of nonprofit accounting. At just $999, there’s no other nonprofit accounting software that comes close. Here are the top reasons that you will often want to pass over the low-priced general use systems in favor of nonprofit-specific accounting software. Most nonprofit organizations use some sort of accounting software. That means that nonprofit accounting software users can expect to see lots of features in the next generation of releases. Working together, these two software applications create a comprehensive nonprofit accounting solution.

Providing fund accounting solutions for nonprofit organizations, software solutions and backoffice systems management. For more control, you can use this nonprofit accounting software to monitor financial commitments through integrated encumbrance tracking. Developer of fund accounting software, nonprofit software, and municipal software. Beyond accounting software, there is frequent need to computerize fund raising functions at nonprofit organizations. Our Solutions iDC has provided fund accounting software solutions for many nonprofit organizations, government agencies, and public sector organizations. Inferior accounting software is sometimes able to provide for two but not three labels, and therefore may be unsuitable for nonprofit organizations.
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