Selecting an appropriate accounting software package is an important task for any business. Making the wrong choice can turn out to be an expensive exercise in terms of the cost and negative impact of the non-productive time wasted on trying to rectifying the situation.
"It is worth allocating time to select the most appropriate package for the business, first time. A good accounting and management information system is a key element of any successful enterprise," says Stephen Corrigan, managing director of Pastel Software SA, a member of the JSE-listed Softline group.
Before examining the merits of any package, a fundamental decision has to be taken on whether the type of business or its specific needs dictate that it would be better served by a package that has to be installed and configured on site by experts, or whether a simple, pre-configured package is more appropriate.
"Most small and medium size enterprises (SMEs) would choose the latter option, unless their business is so specialised that it demands unique configuring. In many instances, however, value-added resellers are able to customise an off-the-shelf package, provided the manufacturer offers a user's toolkit," says Corrigan.
Some packages are sold with a toolkit that allows third party development and customised solutions to integrate directly into the software program as well as seamless conversion of data from most other packages. The software should also offer comprehensive wizards that simplify the installation process with a step-by-step guide and a comprehensive help system. Users can therefore obtain the best of both worlds - a customised package that retains simplicity and user-friendliness.
Corrigan adds that in the case of accounting and payroll software "local is very often lekker". Packages developed by South African software houses tend to cater better for local conditions, needs and business idiosyncrasies.
In any event it pays to adhere to a thorough checklist when selecting an accounting software package. Some of the factors that should be on the checklist are:
The software company should be well established with a tangible track record and reputable brands
The software program should have the functions and features that the business requires without compromising user-friendliness and simplicity
The accounting package should provide strategic management information as well as pure accounting functions. Tools that enable business owners to more effectively control, manage and analyse the business are important. For example, ratio analysis functions allow management to analyse key areas of the business through common financial ratios. Control centre functions enable real-time online monitoring of critical elements of the business.
There should be Internet connectivity for online banking and to integrate easily and effectively with the company's e-commerce operations. Today the ability to email to customers and suppliers from within the package is critical.
International functionality and compliance with different currencies, legislation and tax systems is essential for international traders
The software should have a seamless upgrade path with full data conversion capability for a long-term solution. Program updates should be freely available
The importance of proper software training support and service should never be underestimated
The program should have multilevel security systems to protect sensitive information and the capability to integrate with other widely used business programs
Awards and endorsements of the software from credible institutions, both local and international, are reassuring.
"By adhering to such a checklist a company will at least be able to arrive at a short-list of products that are most appropriate. The acid test could then be a demonstration of the software before making the final purchase decision," says Corrigan. "The right choice, made first time, will pay dividends."
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