Uh-Oh! Three Mistakes to Avoid when Choosing Financial Accounting Software
Wouldn’t it be great if you had a wise colleague to talk to when choosing financial accounting software? Imagine Yoda, but with a CPA or an MBA. He may talk in circles, but he knows his software, and he can help you muddle through the common mistakes people make when choosing financial accounting software.
If you can’t find your own Yoda, then the following may be helpful. These are all mistakes we’ve seen or heard along the way, but they are mistakes that are easily avoided once you know about them. The important step is knowing about them, though. Once you know where the storm troopers lie in wait, you can avoid them.
Three Financial Accounting Software Mistakes to Avoid
Knowing what to avoid is half the battle. Consider these three common mistakes:
Mistake #1: Not including HR in your financial accounting software needs assessment team.
One thing that many companies forget when they’re looking at accounting and finance software is that the HR software interacts with whatever package they choose—perhaps more so than any other system in the office. Make sure you include people from the HR department on the team assessing vendors and software. They’re likely to be heavy users of the new system, and whatever package you choose must work well with their system or you may face integration issues that can slow down adoption and usefulness.
Mistake #2: Going with what works at another company without investigating it.
Sure, you trust the guys over at Company XYZ. You’ve worked with them on many projects and their team is top notch. So when they recommended the financial accounting software package, you simply said yes and called their vendor, sight unseen. Next thing you know, you’ve got an implementation that feels like dancing with an octopus and the hefty bills to pay for your error.
So what went wrong? Company XYZ may be top of the line, and they may have chosen a great software vendor … for their own needs. Your financial accounting needs may be quite different from theirs. Perhaps you serve a different market, or you need different reporting capabilities. Maybe you have an ERP system or a HRMS that must be integrated with the financial accounting suite.
Each company is an individual, with unique needs and requirements. Don’t skip the internal requirements gathering stage or meeting with potential vendors. It’s great to find out which software package another business used and to explore it for your own company, but be sure to compare several software packages and find what works best for you.
Mistake #3: Buying a software that must be used on-premises only.
With today’s flexible workforce and telecommuting options, as well as the many field sales teams traversing the country, buying a package that works only in the office can lead to frustration. Cloud applications and web-based software are usually a good choice for a growing, dynamic organization.
Cloud and web-based applications offer many advantages. You don’t need to invest in hardware to house them. Most cloud applications and web-based software upgrade automatically, and your monthly license covers typical upgrades. More importantly, it also covers robust security and firewalls to keep unwanted users out of the system.
So think about going for the cloud rather than on-premises software. It’s probably a better option.
Mindover Software: Your Own Personal Guide to Financial Accounting Software
Mindover Software can act as your personal guide through the software selection process. We offer many great accounting and finance software choices. Request our kit to help you through the selection process and learn more about your financial software choices.