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Looking for ERP or Accounting Software?

If you're starting to look for new accounting, ERP, or business software, Data Guidance Group's Guide to Selecting Business Software can help. As you may have guessed just from the information on this site, there is a huge amount of information about business, ERP, and accounting software available.

Software is complicated, and there is no lack of information on the Internet about the features, benefits, and return on investment (ROI) you can expect from using it. Feature outlines, brochures, online demos, and downloadable product demos are there to help.

After a while they all start to look the same. When you consider the fact that many installations use software from two or more vendors, business software becomes even more complex.

The Guide will help you get through the maze to find the important nuggets of information. It is these details that make the difference between failure and success.

Before You Look at Software

As the Guide explains, you will get the best results if you start looking for software by not looking at software.

Most vendors will start the process by encouraging you to look at a demo. The web makes this even more attractive to vendors since they can show you pre-recorded or over-the-Internet demos. It saves them time.

We see two problems with this kind of demonstration.

• First, an unscripted demonstration usually shows only the software's strongest or flashiest features.
• Second, key features, work flow, and processes are difficult to evaluate without a demonstration plan or script.

Our recommendation is that you leave the demo for later, when you (and the vendor) have a good understanding of your needs.

So what do you do?

The Guide tells you that the critical document for selecting any type of accounting, ERP, or business software is a Needs Analysis. It is the first thing you should do. A Needs Analysis documents what your current software does, what your needs are, and your process, work flow, and functional requirements.

One section of the Guide gives you Six Reasons You Must Do A Needs Analysis. In this section, you learn how to:

• Write down all your needs, including minor needs. Unrecorded needs may not be included in the new system.
• Get everything you can from your ERP software. Ask the right questions and learn about all the features available.
• List all your choices and pick what you can live without. No product does everything so you may need to give up minor features to get others that will help in the long run.
• Calculate and maximize your return on investment by planning during the Needs Analysis.
• Prepare your employees for issues that may come up during the implementation.
• Plan implementation in stages. Preparation makes implementation more effective.

Professional software firms will insist on a needs analysis. After all, you should expect a professional firm to understand your business needs before discussing a solution.

A "consultant" that recommends software before thoroughly understanding your business isn't saving you time or money. Nor are they doing you a favor. Prescription without diagnosis is malpractice!

The Guide provides you with the information you need to assure that you and your vendor follow the right process to select software for your business.

Tailor Your Software Search For Your Business

Every business is unique. Software is also unique. This means that you have to make sure the software you select matches your business.

You might assume that all software works the same way, or that one software package is pretty much the same as another. That's partially true.

When you get beyond the accounting software needs of accounts payable, accounts receivable, payroll and general ledger to the specifics of inventory, sales orders, purchase orders, service and job costing, software packages begin to look much different. This is where the details that make a difference are uncovered.

Sales commisson is a good example. Most software vendors will ask, "Do you pay sales commission?" If the answer is no, well and good. If the answer is "Yes," there's more detail that needs to be documented.

You will need to know:

• What is your formula for calculating commission?
• Is it based on gross sales price or net?
• Do you pay when you invoice or when you collect the cash?
• Is the draw protected or unprotected?
• Do you penalize for late payment or non-payment?

Few software packages cover all possible commission situations that even small businesses may run into.

What to Look For in Accounting and ERP Software

The number one thing to look out for in selecting software is the process. If the main goal of your consultant's process is to get you to invest in software, run the other way.

Suppose your doctor said, "Look, Jack, I've just gotten in this great new drug. Why don't you take a few dozen and see how you feel? Let me show you all the features..."

Wouldn't you run? Would you buy medicine that way? Then why do so many companies buy software that way?

ERP systems are complex computer programs that touch every area of your business. You have to be careful. You need to make sure that you're asking all the right questions.

You may get what you asked for, but it may not be what you need. A good process will help you think through decisions and document needs completely. In the Guide, a segment entitled, Nine Mistakes That Cause ERP Implementation Failure, lists the top reasons why software does not fulfill its promises. Here are five:

• Senior management is not aware of the process and implementation issues
• Poor needs analysis. The company did not list all current and future needs when evaluating features in software
• Lack of planning and scheduling implementation causes incomplete items which increase cost and frustrate users.
• Poor setup. Choosing the wrong options limits the functions and features of the system.
• Ineffective training. Training should be done in stages with basic training and plenty of time of practice before go-live. This prevents frustration after go-live and when training is completed. Final training should be as close to go-live as possible.

What Should You Do Now?

Ok, so you know already that we're going to say you should order the Guide. The real question is, "Should we put another request box and button after this paragraph or make you scroll up to get to the last one?"

But, seriously, the Guide is information our clients tell us they wish they'd had months earlier. It lays out the key reasons you should...and should not...invest in ERP software.

Here's the question: suppose you decide that you are going to order the Guide. Suppose that you read it. Suppose it convinces you that you should do a Needs Analysis. Then what?

One of your options is to complete the analysis yourself. If you decide to do that and have a question or two, give us a call. We would love to help.

Some clients think that they might need help with the analysis. DGG has been around for 19-plus years, and has done dozens of Needs Analysis documents for as many clients. We would love to talk to you about doing a Needs Analysis for your company.

Most of our clients ask at this point, "How much do you charge for a Needs Analysis?" And you're going to like the answer.

For us at DGG, this isn't about adding another client to our client list. Yes, we'd love to have you as a client if...and this is a big if...there is a fit between us. You see, when DGG engages with a client, our plan is for a long and mutually beneficial relationship. DGG has clients that our owner worked with in the mid-80s when he worked for a local CPA practice.

For you to make a decision about whether you want to work with us...and for us to make the same decision about you, we need to get to know one another. We want to learn about your business. And since you're going to invest a significant amount in the software that you get involved with, we believe it's only reasonable that we invest in your business. So...if you qualify for a DGG Needs Analysis it--like the Guide--is FREE. It's our investment in your business.

Now here's that box to order the Guide. Go ahead...you've read this far.