Best practice in project management for a successful accounting system conversion. From a talk I presented at the Portland OR chapter of the Institutes of Management Accounting in 2016.
New accounting system implementation – Best Practices
1. New Accounting System Implementation –
Moving from 20th to the 21st Century
Or…”How to implement a new accounting system without losing your team, your company, or your mind”
Russell R. Boedeker, CMA
Chief Financial Officer
RentU.com, LLC dba Bookbyte
2. • Everybody’s doing it
• Then when you do it, in a couple years
you do it again
• When you buy or sell you do it again
– …and for most of us this is a very
painful, ugly, gut-wrenching, and
possibly career ending event
There will be opportunity to “buy” a
program with details of tonight’s program.
The Story – A Theme on a Greek Tragedy
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3. The production company (company background)
and then…
Tonight’s Feature Film – Migration or Bust
• The overture
• The deal
• The play
• The dress rehearsal
• Opening night
• Credits
– The producer (Project management)
– The Academy Awards
Agenda
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4. • Founded in 1999 by Steven Gross, literally started in his closet
• Consisted of a number of different business and entities
– eCommerce
• Buy, sell and rent used college textbooks (mainline/historic business)
– www.Bookbyte.com
– www.Rentbooks.com
– Major partner eCommerce seller on www.Amazon.com
• Sell used electronics (i.e. cellphones, tablets, etc.)
– www.Amazon.com under seller name CyberDime
– SaaS eCommerce Software under SellerActive, Inc.
• Providing a hosted solution for eCommerce merchants to manage their inventory and pricing across a
multiple number of selling platforms, such as Amazon and eBay
• Multiple legal entities
– Somerset Investments Inc., dba Bookbyte
– RentU.com, LLC dba Rentbooks
• RentU.com also has sales in Canada
– RentU-UK.com, UK foreign corporation (we have sales in the UK and Germany)
– SellerActive, Inc.
– Several other smaller special purpose entities
• Bookbyte won the 2015 38th fastest growing companies in Oregon
Bookbyte Overview
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6. • The new kid arrives
• Clark Kent from Smallville
arrives in New York City
• Complexity R us
• The supporting cast
• What has our hero
gotten himself into?
The Overture
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7. Give me six hours to chop down a tree and I will spend the first four sharpening the axe.
–Abraham Lincoln
The Deal
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• An well designed RFP is critical
• Sharpen the axe – the business
requirements
• Our targeted tools were selected
from a combination of peer
discussions and our business
requirements
• Top Tip:
“We will adapt our business
processes to the best practices
in our selected tool”
Month Activity
Oct Specifications completed
Initial list of targeted tools/vendors selected
RFP documents created
Tentative budgets set
Nov Demos and reviews of tools
RFP responses reviewed
Dec Tool selected
Contracts completed
Q1'15 Project plan and Business Process Study
Q2'15 Installation and migration to new tool
Jun'15 Unit/System level testing
Jul'15 Go Live Target
8. 8
REQUIREMENTS SPECIFICATION for Bookbyte Accounting/ERP System
Accounting Software Issued on: 10/23/2014
Functional Requirements Must Should Would Requirement Notes Vendor Response
RFP Requirements Specification Contents
GENERAL LEDGER
ACCOUNTS PAYABLE
Supplier master file and set up
W9 on filed recorded and identified on master file x What type of returns are due
Transaction details
Matching AP to inventory SKU's on purchases x
e-accounts payable
Data entry
Eletronic import of credit card and Paypal directly from websites and ability to
put to memorized account codes x
Abilty to charge expenses to proper deparment/legal entity with albity to allocate x
Auto prepay across terms of payment agreement x
EMPLOYEE EXPENSES
PURCHASE ORDER PROCESSING - Optional
ACCOUNTS RECEIVABLE
TECHNOLOGY REQUIREMENTS
True Cloud / SaaS based product - fully multi-tennant x
Supported on all or most mainline web browsers x
System uptime of 99.5% or better x
Opened to discussion based on
current vendor practice
Published system upgrade schedules x
Pre-notification on updates with pre-release notes x
User configurable features and functions x
All MUST functions available out of the box x
MUST functions not available out of the box are available via customized features
that will be supplied by the vendor and included in quote x
Depends on how we can interface
or what workarounds are supported
SOFTWARE / SYSTEM SUPPORT AND SERVICES
Phone support available from 8AM to 5PM PT x
email support available 24 hours a day, with no less than an 8 hour response time x
Opened to discussion based on
current vendor practice
2 hour response time on sev 1 issues x
Opened to discussion based on
current vendor practice
Full definition on severity levels x
Interfaces for Other 3rd Party Products
Professional Services
• Had about 500 lines of specifications
• Each vendor responded to same RFP
with comments for how they
supported each
• Saved winning version and included
their full response detail in the
contract
Top Tip:
“Be honest on your MUST’s, and
realize no system will meet every
wish and desire.”
9. • Care for your stars
– Employees will be stressed by such a major change
– Establish a burning platform
– Open and on going communication, status, hearing issues
– Set the agenda for success, wash/rise/repeat
• Hit the high notes – not the time to drag the dead wood along
– Chart of accounts
– Department and organizational structure
• This is a 90 min film, you can’t cram the entire history of the world in it
– Cut with the past, bring in opening balances only
• Mapping done to past accounts
– Keep the details in the dinosaur
• Business process mapping
– One of my highest priorities and concerns was to take our existing business processes and
adapt/align them to the best practices in the tool
– Keep it simple, don’t add complexity with loads of new automation on the get go
• Lot’s of time to add that after your up, stable and running
– Your vendor/value add reseller is worth their weight in gold if they can do this right
The Play
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Top Tip:
“This isn’t your show, it
belongs to your stars.”
“Build the design of the
future, not the past.”
“Business process, keep
it simple.”
10. The show must go on
• Fanatical approach to holding down scope creep, bare essentials to
launch the tool only.
Unit and final system level testing requirement
• Each person is responsible for their own test case identification, build
and testing
• Tests must be done with live data and compared to data in reference
system
• Every day I’ll take first two hours to review test cases, talk with
everyone, etc.
• Each person is responsible for testing areas of daily/monthly/weekly
processes you normally do and insure new system is function
correctly.
The Dress Rehearsal
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Top Tip:
“Don’t let scope creep happen. Far
better to have a successful launch
and add more later than have a full
fledged solution and fail miserably.”
“Don’t skimp on the final testing.
Gaps here that aren’t caught will
sink your go live.”
11. Testing
Model
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AR Processes
High Level Processes
B/P
Process
Build
Initial
Build
Review
w/ BB
Process
Ready
Template
Proceure
Test
Cases
Ready Responsible Process Name
TestCase
1
Issues
Status
TestCase
2
Issues
Status
TestCase
3
Issues
Status
Done x x x Julie Website - Bookbyte.com: PayPal
Manual Process for PP
download and enter of
invoices into Acumatica
Writeoffs to be
entered on hold
Presemed
Done Not Done Not Done
Done x x Brenda Website -Bookbyte Direct.com
Clatsop CC 1327605CM
(returns) New file format Not Done
Bookxchange 6780655BB
(buybacks) Not Done Not Done
Done x x Julie Wholesale Follett Order 10512039
This will need to
be checked for
over 5% approval
Presumed
Ready Ingram Order 10602566
Done but needs
Supervisor
Approval for
Write-off Great Sage Order 10018949 Done
Done x x NA x Julie Credit memos - All LE's
6-1-15 Deposit - BBD
payments and Insurance
Overpayment refund Done Not Done Not Done
Done x Julie Collection reviews Not in Acumatica NA Not Done Not Done
Done x Julie
Credit granting for customers and credit
reviews Not in Acumatica NA Not Done Not Done
Julie Collections notices AR Aging Reports
Report has
been run Not Done Not Done
Done x Julie Late payment penalties F/c's - 5 Oceans Not Done Not Done Not Done
NA NA Julie Interco Sales from SII to FBA/RentU
Sam - review
process for entry Done Not Done Not Done
x x x x Julie Paypal RentU and BB.COM Done Not Done Not Done
Julie Petty Cash Processing Deli Sales - Funds Transfers Done
Done x Julie Intercompany invoices - All LE's
Same as
above Not Done
In Process x x x x Justin Affilate revenue download and entry good good good
Done x x Justin Chegg good good good
Done x x x x Justin Alibris upload modified excel none good upload modified excel none good upload modified excel none good
Done x x x x Justin Barnes & Noble upload modified excel none good upload modified excel none good good
Done x x x x Justin Abe upload modified excel none good upload modified excel none good upload modified excel none good
Done x x Justin Valore Books good good good
Done x x Justin TextbookRush good good good
Done x x Justin Half good good good
Done x x x x Justin Amazon upload modified excel none good upload modified excel none good upload modified excel none good
• Test cases built for each
functional area
o AR, AP, GL, Cash
• Live data comparisons
• Detailed notes and actions
to fix fail points
• Reviewed on rolling basis
every day during testing
Top Tip:
“Build a testing model.”
12. • End of May’15 test plans were outlined
• Staff was directed to test and update as they
go
• By end of 1st week in Jun’15 realized the
press of normal work over road testing –
implemented a forced march
– Overtime was required, but it was kept to
a manageable level
Testing Realities
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Week of 6/15 Week of 6/22
Mon Staff 9-12 1-4 Mon Staff 9-12 1-4
Alice X Alice X
Julie X Julie X
Jennifer X Jennifer
Brenda Brenda
Carissa X Carissa X
Justin X Justin X
Nick Nick
Russell X Russell
Therese X Therese X
Amy X Amy X
Week of 6/8 Sara X Sara X
Tue Staff 8-10 10-12 1-3 3-5 Tue Staff 9-12 1-4 Tue Staff 9-12 1-4
Alice X Alice X Alice X
Julie X Julie X Julie X
Jennifer Jennifer Jennifer X
Brenda X Brenda X Brenda X
Carissa Carissa X Carissa X
Justin X Justin Justin X
Nick X Nick Nick
Russell X Russell X Russell
Therese X Therese X Therese X
Amy X Amy X Amy X
Sara Sara X Sara X
Wed Staff 8-10 10-12 1-3 3-5 Wed Staff 9-12 1-4 Wed Staff 9-12 1-4
Alice X Alice X Alice X
Julie X Julie X Julie X
Jennifer Jennifer X Jennifer X
Brenda X Brenda X Brenda X
Carissa Carissa X Carissa X
Justin X Justin X Justin X
Nick Nick Nick
Russell X X Russell Russell
Therese X Therese X Therese X
Amy X Amy X Amy X
Sara Sara X Sara X
Thur Staff 8-10 10-12 1-3 3-5 Thur Staff 9-12 1-4 Thur Staff 9-12 1-4
Alice X Alice X Alice X
Julie X Julie X Julie X
Jennifer Jennifer Jennifer
Brenda X Brenda Brenda
Carissa X Carissa X Carissa X
Justin X Justin X Justin X
Nick Nick Nick
Russell X Russell Russell
Therese X Therese X Therese X
Amy X Amy X Amy X
Sara Sara X Sara X
Fri Staff 8-10 10-12 1-3 3-5 Fri Staff 9-12 1-4 Fri Staff 9-12 1-4
Alice X Alice X Alice X
Julie X Julie X Julie X
Jennifer X X Jennifer X Jennifer X
Brenda X Brenda Brenda
Carissa X Carissa X Carissa X
Justin X Justin X Justin X
Nick Nick Nick
Russell X Russell Russell
Therese X Therese X Therese X
Amy X Amy X Amy X
Sara X X Sara X Sara X
Top Tip:
“Dedicate testing time each day
or the pressures of the business
with push testing to the back
burner.”
13. • The day we crossed the Rubicon
• What is our motto? “Failure is not
an option!”
• Walk the line
Opening Night
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14. • The go live on July 1st was a major company event
• All the team and our consultant/vendor was on hand for the formal ribbon cutting ceremony to
bring our new accounting tool, affectionately called “HAL” to life.
• Immortalized in a YouTube video
– https://www.youtube.com/watch?v=Jh8RjdVK2YY
And then, the sounds of silence
Celebrate the Success
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Top Tip:
“It’s your job to keep the spirits and
enthusiasm high until the end. Don’t
let failure be an option.”
16. • The combined
role of Project
Executive and
Project manager
• Communication
tools across the
executive team
• Weekly internal
project team
meetings
The Producer
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Project Updated
Project manager Sponsor
Item Status Notes
Schedule Currently on track, no known issue pending to impact
Technical Push on having live data until August 1st, working data technical issues
Scope Scope defined, holding back on scope creep. Maintainting a number of existing manual processes on go live to limit launch risk
Cost No cost issues. Vendor cost on track, potential to come in under budget
Risk Processes are for the most part defined in skeleton form. A number of process tails to finish. Test cases still to be developed
Issues Managing team time on Acumatica and on going processes. Unknown time on go live stablity, planning on all of July blocked out.
Working around individual vacation schedules through summer.
Staff backfill around known staff outages need to be addressed in go live period
Planned completion July 1 2015
Est. completion July 1 2015
Item
Inventory 2 Pass
Decision - Approved
June/July projects
Item
Accounting processes All major processes built and reviewed with team.
Test Cases Work on outlining unit test cases have started
BBI design Technical work completed the first push of inventory data to Acumatica. Testing now in process
Key Next Steps Building of test cases. Created new tracking model for team to manage testing and recording issues.
Inventory automation to Acumatica will be very
complex and time consuming, high risk for clean
launch by July
Analyze build time for each portion of
inventory, run in two passes, high impact
inventory processes set for July launch,
remainder scheduled post launch on pass 2.
Keep manual process for inventory flows not
part of pass 1
Russell and Travis
Unknown impact on other ongoing projects
schedules to keep Acumatica on task from June-
July
Action plans not known at this time until/unless
Acuamatic project needs expand beyond
available capacity
Accomplishments During Reporting Period
Deliverables Issues
Management Alert
Situation Requiring Management Action Plan Owner
Acumatica+A1:K22 Weekly Project Status Report
Acumatica integration
Russell R. Boedeker Exec Team
6/10/2015
Top Tip:
“Nothing substitutes for the
CFO as the project manager
to get things done.”
17. Project Result Summary
• Project launched on schedule
• Fully functional at launch: shakedown issues were minor
• Go live was a welcome boring event
• Team moral was high, no one had to kill themselves
Post Mortem
• Light close done month 1, partial financial reports
produced
• Month 2 full close and full financial reports
• Month 3 shakedown completed for initial launch
The Academy Awards
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18. Russell R. Boedeker, CMA
RentU.com, LLC
rboedeker@bookbyte.com
503-858-8927
For those interested I can provide some of the templates and other project
materials we used for this project.
Contact Information
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