How to Choose Accounting Software For Big Business

Discussion in 'Accounting Software' started by pandu, Dec 16, 2009.

  1. pandu

    pandu Guest

    When deciding to go for accounting software, it must be understood
    that the best accounting software is not necessarily the most
    expensive, but the one that performs the entire core accounting
    functions quickly and accurately. All additional features are
    secondary to the basic functions. Don't forget, it is the rigid rules
    of accounting that makes the software so consistent throughout.
    The most elaborate business accounting software provides very in-depth
    financial information. These numbers can be so detailed that it takes
    a professional accountant days to interpret. On the flip side, some
    software can give a general summary with a few clicks of the mouse.
    The greatest business accounting software cannot convey what an
    increase in bank transactions and a decrease in sales volume means for
    any specific business. So, even with great software, accounting
    knowledge is required to forecast corrections to be made or areas to
    focus on with accounting figures.
    http://simhasolutionsap.com/
     
    pandu, Dec 16, 2009
    #1
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  2. pandu

    banderson

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    a few steps to take when choosing

    Here are a few steps you need to take in order to make sure you get exactly what you need for your business while still staying within a reasonable budget.
    1. before you even look into software options you need to deturmine a few things about your business.
    a) how do you see your business growing in the next 1, 5, 10, 20 years?
    b) if you could change 10 things about your current system, what would they be?
    c) what are the key features of your business that drive your profits?
    d) If every aspect of your business were completely automated (like an ecommerce site), how much money would that save you per month and how would that effect your customer service?
    2. look into atleast 5 software options, and by looking into these options this means:
    a) In order for a sales rep to effectively evauate your business, they need to see your business run first hand. over the phone or a simple email does not work!
    b) Get a project bid from each of the 5 options. this is generally free and will give you side by side comparisons of all of your software options. These bids will give you a breakdown of cost of software, hardware, how many hours of your time will be needed, how many hours of their time will be needed(generally between $100 per hour and $250 per hour, cost of software upgrades, and a few more items. GET A CUSTOM DEMONSTRATIONS! you won't know if it will work for you without seeing it first.

    3. Once you see the general cost of system implementation, now is the time to evaluate financing options. Here are a few.
    a) upfront purchase. this is pretty self explanitory and a very rare accurance by the way.
    b) user contract. this option allows the setup of your system with a downpayment and lets you pay month to month without purchasing anything. this is basically like a rental. terms for this are generally between 5 to 10 years. the downside to this option is the same with just about any kind of rental (from car rental to tool rental), by the time you have rented it for a short period of time you could have just purchased it for less money.
    c) lease. this is generally a good option for companies with not so good credit. one upside to this option is that at the end of the lease, you will be given a buy back option. (generally software is sold to you for $1. yes, only a buck. the hardware can be purchased at fair market value which as we all know fair market value of 5 year old computer equipment is next to nothing. this option will also usually waive the first 6 months payments so your business can slowly ease into the big change.
    d) business loan. (my favorite) this option generally costs less per month than the last few payment options and you actually own it so your purchase can actually be considered a company asset rather than a liability.just like with the leasing option your payments will usually be waived for the first 6 months.
    4. Time to deturmine when you will need it by. implementing a large system takes months, not days. you need to give yourself enough time to get project bids, get financial ducks in a row, employee training, and so on. If you try and rush things you may end up paying too much for a system that isn't right for your business. take your time and do it right the first time.
    Here are a few options to consider. ***remember....evaluate your business, get project proposals, get custom demonstrations, check out financing options, and most importantly allow yourself plenty of time. A quick decision is almost always a bad decision.
    Here are a few system options to consider.
    SAP
    DYNACOM
    ORACLE
    SAGE
    SYSPRO
    NETSUITE
    **please feel free to ad to this list as needed
     
    banderson, Mar 9, 2010
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