Posted by Jim High
| Companies rely on accounting software to record financial transactions and run key reports. These reports help evaluate profitability, revenue, and other metrics for success. It's important for companies to properly evaluate new accounting software to ensure it meets the needs unique to that particular business and industry. When the right decision is made, new accounting software can help companies gain efficiencies in recording financial transactions and more effectively evaluate financial measures of success. Let's take a look at the steps to take in evaluating accounting software: |  |
Write down all of your current issues
The first step to choosing new accounting software is to figure out what is wrong with your current system. Where are you having issues? Do you feel as though a new system could correct these issued? Make a list of all of your problem areas, as these are the key areas that are going to have to be addressed by whatever software you go with.
What do you want to get out of your new system?
Now is the time to write down bullet points of what you want out of your new system. This is better known as a top-down strategy, where you start with your end-game and then choose something that fits that goal. Writing down your expectations will then help you choose an accounting system that matches those desires.
Consider other systems in your overall business structure
The importance of interfaces between systems in a company is often overlooked. Consider all of the systems that exist in your business and make sure that the accounting system you choose can talk to those other systems.
Come up with a list of a few key options
With all of the information you have acquired, scan the marketplace and pick out a list of potential accounting software. This short list will be used to eventually come to your decision. Try to keep this list to four or five, max.
Schedule test runs of each system with vendors
It is time to reach out to the vendors of each of these systems to see if you can get some demonstrations done. This will give you a chance to put the system through its paces and see if it will work for you. Let the vendors know your expectations ahead of time so that they can show you what their system can do to meet your actual needs.
Test it in a real-life environment
Once the demonstration is done and you are narrowed down to a few options, one of the best ways to fully evaluate a new accounting system is through a sandbox testing environment. Play with the software in a test environment. This will allow you to mess around with it using your own data and unique business scenarios. You'll see exactly how it works for you from a functionality standpoint.
The result of this evaluation should be an accounting system that gives you a great return on your investment. It should bring about improved functionality, more accurate financial reporting, and an increased level of efficiency in the recording of accounting transactions.
The result of this evaluation should be an accounting system that gives you a great return on your investment. It should bring about improved functionality, more accurate financial reporting, and an increased level of efficiency in the recording of accounting transactions.