Nomizon Associates
Business Advisors
Choosing accounting software
The future of the business
When choosing accounting software, it’s always important to ensure that it will be fit for purpose for the
future. The simplest way to do this is to map out how the company has changed since the existing software
was installed and to anticipate future developments. Consider the size and the rate of growth of turnover,
employees and locations. Growth often increases complexity so think about new business lines, markets,
products, departments and regulations. Don’t forget multi currency and multi company considerations. Also
consider what gaps in processing and information are being plugged manually and by spreadsheets or are
simply not being addressed.
Software requirements
Your accounting software may also need to integrate with other applications e.g. stock, sales order
processing or time recording. And importantly, you will need to find out if the current IT system can
adequately support it. Canvas the views of your internal customers, e.g. management and sales, as well as
finance staff as their input will be invaluable. Implementation will progress much more smoothly if users are
involved early in the selection process.
Budget for all costs.
The budget for your upgrade is a key consideration. Ensure that as well as software and hardware licensing
or purchasing costs you also factor in consultancy costs for implementation and data conversion and
migration, upgrades, support and training.
Many businesses have developed highly customised processes and reports to help them operate.
Upgrading accounting software is a good time to consider streamlining these. Where customisation is still
necessary, flexibility and ease in coding the architecture of the software and in report writing are important
considerations.
Don’t restrict your choice to a simple upgrade of your existing software. Whilst this may be the easiest route
it may end up restricting the benefits of changing. Look at the alternatives that meet the criteria you have
developed.
Request for information
Some good sources for identifying software packages which are likely to meet your requirements include IT
trade journals, trade bodies, competitors and accountants. Prepare a Request for Information from your key
requirements and send it to 6 to 10 suppliers you have identified who may meet the criteria and be within
your budget. If purchasing from a reseller, you will also need to apply selection criteria against the reseller
who will be implementing any upgrade and providing ongoing support as well as the accounting software
itself.
Evaluation and selection
Shortlist 3 or 4 of the suppliers for product demonstrations and ensure they are prepared to answer very
specific questions including lifetime costs and contractual terms. Visit reference sites in similar businesses to
yours to find out how the upgrade was handled, whether time and costs were kept to budget by the
supplier, if any problems were encountered and whether the support provided is satisfactory.
For further information please contact me by email at johntoppin@nomizon.co.uk or on 07834 380290.
© John Toppin 2009
The right of John Toppin to be identified as the author of this work has been asserted by him in accordance
with the Copyright, Designs and Patents Act 1988.
John Toppin MA FCA, Nomizon Associates, The Old Rectory, Sutton Road, Langley, Kent, ME17 3LY.
44(0)7834 380290 johntoppin@nomizon.co.uk www.nomizon.co.uk