Buyers Guide:: How To Choose The Right Accounts Software and Supplier

Buyers Guide:
How to choose the right accounts software and supplier

Accounts Software Buyers Guide
DMC Software Solutions Ltd
Churchill House, Isis Way, Minerva Business Park, Lynch Wood, Peterborough, PE2 6QR
T: 0800 652 2423 F: 01733 371961 E: info@dmcsoftware.co.uk W: www.dmcsoftware.co.uk

Welcome to our guide
Most accountants would agree that a good accounting solution is essential to the success of any business.
Accounting software can make it easier to produce financial management information on a timely basis.
This guide has been put together with organisations involved in the selection process in mind. Whether your
business is small, and only has basic needs, or whether your business is large, with intricate processes DMC
Software Solutions can help you. We have been helping people solve their accounting system problems for
years and we feel by writing this guide we will help many more.
Choosing and implementing a new accounting system should not be scary; within this guide you will find hints
and tips to help make the process of choosing and implementing a new accounting system a simple one. You
will find information on
What a good system should offer you
What to look for when selecting a system
How to choose the right supplier
How to ensure your new system is future proofed and can grow with your business
What to avoid when searching for the right solution
I hope that you find this guide helpful and that it provides you with perceptive advice to help you with
selecting and buying your new system.
Should you have any questions or require any further information please do not hesitate to contact us.
Kindest Regards

Mike Ramsay
Managing Director


Contents

4
What is an Accounting Package?
4
Changing with the times
4
What to think about when initiating change
5
What a good accounting solution should offer
6
Future proofing
7
Things to avoid
7
CRM integration
8
Finding a provider
9
Checklist


What is an Accounting Package?
Accounting packages are used for processing important financial transactions in your business. It will provide
you with critical information about your business and its performance. A good accounting solution will help
manage your business accounts more efficiently, making the processes more straightforward.
There is a growing need for e-filing which means accounts software is more attractive to many businesses as
it makes the process very simple.

Changing with the times
In todays market there are less than 100 accounting systems being constantly updated. 10 years ago it was a
very different story with more than 800 solutions available.
Business buying habits have changed dramatically and the bespoke applications are phasing out, as people
are favouring better established packages. Modern packages offer flexibility and they can be configured to
meet your exact needs and business processes.

What to think about when initiating change
Making the decision to change your business and accounting solution is potentially quite difficult. Great care
needs to be taken as a wrong decision can have disastrous effects on your business.
It is inevitable as time progresses and your business changes, your accounting system requirements will alter
too. Once you have made the decision that your current solution no longer achieves what you require you
need to consider and be clear on the following points:
What limitations are you currently experiencing?
What areas are proving to be problematic?
What effects do you want the change of accounting system to have on your business processes?
What do you expect from your new system?
What is your business plan?
Knowing what your current needs are is not enough! you need be thinking ahead, thinking to the future! How
will your business change over the next few years? What effect will this have on your business processes?
Without considering this you may well have to make a later change.
What is currently happening in the market place?
Think about what other businesses are doing. What solutions are they using? What effect is this having on
the service they provide? Even if another business has made change with a negative effect you learn from
them by improving on their pitfalls.


What a good accounting solution should offer:
When making a selection beware; the correct solution for one company may prove to be completely the
opposite for the next. Be aware of those who offer an out of the box solution that suits all.
Key areas that you need to look at when choosing your software are
Customisation:
Is the software customisable? Customisation is a key feature to look at when purchasing a new system. Most
providers offer a level of customisation, but you need to look for the provider that offers development.
You will find many suppliers that offer screen configuration but it is important that you choose specialists who
can modify the appearance and content of your screens catering for your exact needs.
Reporting:
Reporting is an important feature of any accounting package. When selecting the correct package it is
essential that the reports are flexible and that you have control. Many solutions in the market place offer
standardised reports for you to choose from. However, you will find it invaluable if you can select a solution
where these standard formats are available but you have the option to customise them or even build your
own. With this functionality it ensures that the data you are analysing is relevant!
N.B. When producing reports it is important to work in a format that you are familiar with. Look out for
accounting tools that enable you to export reports into Excel. This will allow you to amend them or even
create new spreadsheets to suit your own business.
Integration:
It is best to choose a product that allows integration with other modules and other products. This allows data
to be brought in from other sources to be viewed as one. This facility reduces the need to re-key data and
therefore helps to eliminate errors and improves productivity.
Seamless integration with additional modules and applications allows information to be accessed business
wide. The combination of front and back-office information in one central database improves the service that
you can offer to your customers as everyone in the business can see what is happening with each customer
at every stage.
Multi-currency:
Foreign currency capability is something that should be considered when choosing a new system. Although
not essential for everyone it may be useful in the future. Nobody can accurately predict how their business
may change. This feature will allow you to trade with customers and suppliers outside of the UK in any
mixture of currencies. A good system will record all transactions in a base currency with details of the
exchange rate used in every line of transaction.
Security:
Internal and external risks to data are plentiful. It is an employers responsibility to notify all employees of
internal risks. A relaxed attitude to security puts your companys most valuable asset at risk- Your data!
Did you know a large percentage of all employees admit to leaving their computer on when they have left the
office?
Businesses can increase the protection of their data against external risks by selecting the correct system.
Look for a system with the most secure platform and best available security.


Future proofing:
To ensure that the solution you choose is going to grow with your business and not provide pinch points in
the future you need to ensure that your chosen solution has the following qualities.
Scalability:
It is important when you are researching your software that you look at the number of users the system can
accommodate. It may be that you only require two users at this stage but as your business grows you may
require additional users. Some solutions cater for only 1-2 users so if you have the potential to grow it may
be worth considering a system with greater scalability to prevent having to change to another solution further
down the line.
Modular:
If you select a modular product you can select the modules you require now with the scope to select
additional modules at a later date. You do not need to invest large amounts of money in the early stages to
future proof your software. Select key modules now to perform your day-to-day tasks and add additional
modules as your business changes.
Integrated Solution:
Purchasing a single integrated solution can benefit you now and in the future. A single integrated solution, or
suite, provides you with a complete business management solution that runs across your entire organisation.
This provides sales staff with access to information previously only available to accounts and vice versa.
This option allows unmatched reporting across all departments giving an accurate view of your business
position, the benefits are endless. Before this functionality was only available to the large corporations, this
next generation software is now within the reach of all business sizes.
Upgrade path:
Upgrades are important to ensure that you receive the best from your system. You need to discuss the
upgrade path your new system offers with your new provider. To reduce the need to retrain your employees
ensure that you are able to keep the same look and feel to your system. Also, be certain that you will have
access to historical data instantly; this is integral to the smooth running of your business and is worthwhile
discussing with your provider.


Things to avoid:
Systems restricted by number of users - this can incur additional costs in future

Solutions that allow little customisation, no two businesses are the same and therefore what is
required from business to business will be different

Is the software written in the UK, if your software is engineered abroad they may not adhere to
British legislation

Can you edit transactions, because we all make mistakes it is important that you are able to
review and edit transactions before the audit trail is created

Reputation, is your software accredited by a reputable organisation, for example HMRC

CRM Integration:
Customer Relationship Management software is designed to improve your relationship with your customer.
Successful businesses will know that a customer focused approach is key. Whether you already have a CRM
system or you are considering a CRM system as part of an integrated solution you will find this information
useful.
Integrating your accountancy solution with a CRM package has significant benefits and will give you the edge
when up against competitors. Your sales professionals will have instant access to all the tools that empower
sales people to sell. Customer-oriented data is stored centrally and can be easily tracked and reported upon,
giving shared access to meaningful and up-to-date customer information. Similarly, any member of staff not
just those directly involved in an account has information at their fingertips to respond to a customers
query.
These are just a few of the benefits an integrated package could provide you with, but before you rush out
and buy one, the following points should be addressed.
It is important that your accountancy solution and CRM system integrate seamlessly. Ask to see
demonstrations of how they will fit together. Most companies will tell you it is easy for them to do,
but often this is not the case.

Ensure that your CRM software can interface with your current applications such as Microsoft Outlook,
also find out how it integrates and to what level, this can be crucial.

CRM solutions contain information on all of your customers and therefore needs to be protected.
When purchasing your CRM Solution ensure you choose the most reliable technology available to you.
(SQL Server is becoming increasingly popular.)

Please be aware that software implementations can only do so much, the success of a solution depends upon
the new processes and disciplines put in place by a company.

Finding a software provider:
Once you have identified what you are looking for you must select a provider. When looking for a software
provider you need more than a company that will sell you the product out of the box. Although many
systems do come with great out of the box functionality it is best to look for a company that can tailor a
solution to your needs and provide adequate after sales support.
Should I buy direct from the software author or through a reseller?
Dealing with the software author is not always beneficial, in most cases they prefer to sell through specialist
business partners or resellers. Very often it is the resellers who can offer a personal service and are skilled in
implementation, development, training and supporting of the product.
1. Do they understand your needs?
A good supplier should provide a pre-consultancy service where you have the opportunity to advise them of
your business processes and what you hope to achieve. From this they will be able to gain an understanding
of your business, staff and operational needs and advise you of the best solution available to you.
2. Do they have the relevant experience?
A supplier must be able to demonstrate that they have significant and relevant experience; at the very least
they should be able to provide you with reference sites that illustrate that their accounting solution has been
successfully implemented on many occasions.
3. Can they tailor a solution to meet your needs?
From the consultancy provided by your supplier they should be able to ascertain what you require and how to
achieve it. Highly experienced technicians will work with you and your team to ensure that every aspect is
properly considered and that the correct configuration is achieved in the timescale promised.
4. Do they provide implementation?
The implementation of an accountancy system can be a lengthy task. A good provider should employ a
methodology which guarantees that your new system is installed and performing to your specification in a
small timeframe with as little disruption to your business as possible.
5. Do they offer Training?
To ensure you get a good return on your investment it is essential all users are trained to use your new
system and should receive supporting training material. Providers should offer a number of options for
training - classroom sessions, one-to-one tuition and bespoke courses either at your site or on their premises.
6. Are they committed to you?
A supplier must demonstrate they have a strong customer support mechanism in place. The service you
receive is equal in importance to the software itself. Make sure the software is supplied with an annual
support contract that is available during office hours. It is also in your interest to check how they are
contactable.
7. Do they demonstrate longevity?
It is important to research the supplier and ensure they have relevant experience. It is important to establish
this because it helps to identify whether they successfully implement solutions and have long term
commitment.
8. Accreditations
While researching the credibility of the company check to see if they have received any awards that reflect
their innovation and success.

Checklist:
To help you make your decision please see below our buyers checklist.
Be clear of your business plan and time scale
Evaluate processes within each department
Maintain your expectations
Research the market
Start speaking to suppliers
Make a short list of solutions and have a supplier demonstrate them to you
Have a list of the key functions you want to achieve, see the example below.

Key Functions Required Available
Financial Management
Management Reporting
Accounts Payable
Accounts receivable
Cash Book
Budgeting
Order Processing
Sales order processing
Sales and marketing
Purchase order processing
Document imaging
Project Management

And so on.
Tick the key functions required and request that you vendor ticks the key functions available to you.
Look For...

A provider must... Things to discuss...
Customisable solution Understand your needs Options available to you
Integrated/modular solution Have relevant experience Suitability of the package
Flexible reporting Be able to tailor a solution Timescales
Multi-currency capability
Scalability
Offer implementation,
training and support
Implementation process
(possible disruptions
Be well established Pricing, annual or one off
payment?

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