Computerised Accounting for Small and Medium Enterprise

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Computerised Accounting for Small and Medium
Enterprise

• PBCS Week 7

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Computerised Accounting for SMEs - 1993 1995,
Migration to Windows

• 100s of NEW offerings
• Additional Functionality
• Flexible Reporting and Linkage to 3rd Party
  Software
• Friendly User Interfaces
• Vertical Market Products
• Suppliers forced to release Windows Version of
  Product
• 2nd and 3rd Generation system Users

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Computerised Accounting for SMEs 1996 1997,
The end game for DOS and the birth of Windows 95

• Unprecedented increase in capacity of computers
  (PCs)
• The Specter of the Millennium
• EMU Looming
• The world dominating aspirations of Microsoft
  (Bill Gate)
• Simplified User interfaces as the expected norm
• ODBC
• Demand for Information to Manage, rather than
  mere accounts
• Disparity among the available packaged solutions

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The Selection and implementation of accounting
software is fraught with DANGER..

• Or opportunity for Accounting and Systems
  Consultants to earn a crust
• A Users Guide to the Selection of Accounting
  Software
• A hero is only as good as his weapon
• Dont be stuck with wet fish to administer your
  accounting systems

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To minimise the frustration and DANGER of the
WRONG package..

• Automation is NOT the end but the MEANS
• Accounting systems do not make decisions
• Automation will NOT eliminate poor decision
• People are the most important resource
• Success is rarely dependent on automation
• No Accounting system will make a company
  profitable

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The Selection and Implementation Plan

• Advice and Help
• No one supplier/accountant has all the answers
• Do as much as possible yourself
• Lucius Aemilus Paulius,
• Commanders should be counselled, chiefly, by
  persons of know talent by those who have made
  the art of war their particular study, and those
  whose knowledge is derived from experience-from
  those who are present at the scene of action,
  embarked in the same ship and are sharers of the
  same danger

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Sources of Information

• Trade Business magazine
• Databases
• Software Consultant
• The Internet/WWW
• Contacts in similar companies, Trade Associations
• Published Reports

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Recognition of Needs

• A need must be perceived
• A problem must be solved
• An opportunity must be grasped
• The Decision to Automate
• Bear in mind the following
• Automation for the sake of it
• Lack of staff support failure
• Fright and Unease with new systems is Normal
• The scale investment is high Are there real
  benefits?
• Must involve Everyone
• The best ideas usually come from those doing th
  job
• The Decision should be cooperative not imposed

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Considerations for the Selection and
Implementation Plan

• Prepare a set of agreed objectives
• Set realistic time scales
• Identify key participants
• Identify specific responsibilities and timetables
• Leadership better than orders
• Do not rush merely to achieve timetable
• Manage collection and communication of data
• Define selection criteria in detail
• Meet regularly
• Training

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Considerations for the Selection and
Implementation Plan

• Prepare a set of agreed objectives
• Set realistic time scales
• Identify key participants
• Identify specific responsibilities and timetables
• Leadership better than orders
• Do not rush merely to achieve timetable
• Manage collection and communication of data
• Define selection criteria in detail
• Meet regularly
• Training

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Assume the worst will happen (it invariably
does), expect changes and problems along the way.
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A Methodical Approach to the Selection Process

• Analysis of needs
• Define corporate goals
• Analyse data/information requirements
• Determine desire/desirable functions
• Consider re-design of current processes
• Define/Clarify needs
• Cost benefit justification
• Software Evaluation
• Identify SW packages
• Evaluate Packages

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A Methodical Approach to the Selection Process

• Tailored packages
• Check references and make selection
• Implementation

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Define the Expected Benefits

• What should the system do for us?
• What do we need to do well to succeed?
• To what degree (if any) will automation assist
  the company?
• Select an accounting system which will contribute
  directly to the business success.

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Involving Employees

• Ask for specific comments
• Appoint a liaison / functional area
• Formal specification (analysis comment)
• Review specification in each functional area
• Tailored demonstration script (Key personnel)
• Key personnel in demonstration comments
• Strive for consensus in selection
• Communicate decisions promptly

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Qualitative Selection Criteria

• What are our present/future needs and how well
  does this product meet these?
• What are our feature needs and how well does this
  product meet these?
• Will its procedures help us do well as a
  business?
• Do the input screens make sense?
• Are speed and performance adequate?
• Is it easy to use?
• Can it be of immediate benefit?
• Is there potential for growth?
• How will I and others feel?

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Qualitative Selection Criteria (contd)

• What are help facilities like?
• What was my first impression?
• What is my impression after experimenting?
• How useful are the standard reports?
• How would I rate the Vendor?

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Checking the Vendor

• As for a few problem customers
• Seek assurance about
• Functionality Robustness of Software
• Problem areas frustrations (plus vendors action)
• How was the implementation managed
• What would they do differently
• What is Vendor support like
• Promptness
• Staff expertise
• Attitude

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Make your final selection

• Beware brand new technology
• Balance between General and Vertical
• Draft contract with Vendor (carefully)
• Deal with a single vendor

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Typical Planning Pitfalls

• Not enough time selection to live
• Not testing prior to implementation
• Lack of time for data conversion
• Leaving key staff out of the process
• Poor construction of codes
• Skimping on training
• Losing continuity (when staff changes)
• Top management failing to see it through

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A Brief View of Some Accounting Software

• Pegasus/Opera 32 Bit Converted Version
• As a history lesson the older modular formats
• Quicken Windows
• To illustrate the entry level, low functionality
• Sage Line 50
• To indicate the shape of things to come

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A Classification of Small Business Accounting
Packages

• Price
• Focus
• Function
• Construction
• Size of Business

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Focus

• General
• Current features
• Less specific to needs
• Vertical
• Features for particular businesses
• Lack the depth in core accounting
• Custom
• Not really packages at all
• Platform
• Dos to Windows, Novell/NT to Mini and Mainframe

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Functionality Considerations

• Entry level, Mid Range to High Level
• Glorified cash book to comprehensive suit
• Level of configurability
• Links to 3rd party software
• Upgrade and networking

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Structure of the Software

• Single Compilation
• Little Choice over integration
• Difficult when corruption occurs
• Modular
• Choice over level and timing integration
• Cut off made much easier
• Recovery from corruption simple
• Add on modules are common

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Changes in the last decade have been dramatic,
choice is growing, But the face of UK accounting
software is relatively unchanged

• Entry-level Sage Instant, TAS Books, Quickbooks,
  MYOB
• Mid-range Sage Line 50, Opera
• High-End Oracle, SAP, Sage Line 100
• Other Suppliers are becoming more active. The
  really big players have not yet entered.