Accounting software trends

The continued growth of web-based and web-enabled Accounting Software and systems, including:

•   Cloud computing / SaaS - wholly online accounting software
•   Hosted or combined online / on-premise accounting software services and systems (and the beginning of the reduction of solely on-premise accounting software)
•   Web services, web support
•   e-procurement, e-commerce, e-expenses systems and electronic payment integrated within accounting software
•   Web interfaces from 3rd party web-based systems such as e-expenses
•   Workflow functionality integrated within accounting software
•   Improving analytics, business intelligence and reporting
•   e-filing for taxation returns
•   Enhanced security - online and offline

Non-web Accounting Software trends - continued growth of:

•   Industry sector specific or vertical market solutions
•   Accounting software combined (or integrated) with specialised modules for industry specific needs / vertical markets (and the reduction of generic accounting systems)
•   Integration with other associated accounting software modules eg CRM (and the consequent reduction of stand-alone accounting systems)
•   Improved integration with 3rd party software
•   Seamless integration with 3rd party office products eg Excel, Word
•   Software scalability
•   Functionality and features added to accounting software
•   Accounting software suitable for large organisations, redesigned for medium and smaller sized businesses. And conversely accounting software that is suitable for small / medium sized businesses, extended to be suitable for medium / larger size businesses
•   International functionality of accounting software  - to support employees in multiple countries with multiple languages
•   Software customisation capabilities
•   Intuitive use of functionality / ease of use
•   Financial and accounting regulations
•   Using technology and workflow functionality to reduce operational accounts department costs
•   Faster software set up, implementation and upgrade time scales

Accounting Software market trends - continued growth of:

•   Replacing existing systems with web-based accounting software and web-enabling activities and processes
•   Competition, especially in the mid-range Accounting / ERP software market
•   Accounting software market / vendor consolidation

Project initiation checklist

You’ve finally got board approval to select a new software system - then what? You’ve actually got to do it! So, here is a quick ‘project initiation checklist’ of 30 things to consider at this stage. If you can tick everything ‘yes’ - you’re ready to start!

Ref Project Initiation Checklist
 
What is the software / system selection project?
 
1 Has the project proposal been approved by the board without any changes to the proposal? Or if the board has made changes, can you manage these?
2 Has sufficient funding been approved for the software selection phase?
3 Are the project objectives still the same as within the proposal?
4 Is the project scope (inclusions and exclusions), still the same as within the proposal?
5 Are the project deliverables still the same as within the proposal?
6 Have deliverables been defined for each stage within the software selection?
7 Have acceptance criteria been defined for each deliverable?
  When will the project be undertaken?
8 Have the start and completion dates been defined and agreed?
9 Have dates for the key deliverables within the project been defined and agreed?
  Who is involved with the project?
10 Provide names for:
  - project sponsor:
  - project manager:
  - project team:
  - key users:
  - user management (who are responsible for signing off the requirements and accepting the system selection deliverables):
11 Have all the roles and responsibilities been defined?
12 Have all the roles and responsibilities been communicated?
13 Do all resources (involved) have sufficient time available for the project?
14 Is project resourcing sufficient?
15 Do all resources have sufficient knowledge / skills to undertake their part in the project?
16 Have you prepared and issued a project organisational chart?
17 Does everyone understand their role within the project?

  How will the project be carried out?
 
18 Have you determined your project management / system selection methodology?
19 Have you prepared a revised (or final) project plan / gantt chart?
20 Are the responsibilities, milestones and deliverables clear?
21 Has this been issued and discussed with all involved?
22 Does everyone understand it?
23 Have you purchased tools to help you document your business requirements / select your new system? eg Axia’s System Requirements & RFI/RFP Templates
24 Have you set up project communications? eg planned regular (weekly) project meetings, defined an email list of other people to be kept informed?
25 Have you set up an issues escalation process?
26 Have you set up project monitoring? eg using a project management tool
27 Have you defined quality standards and specified how these will be maintained?
28 Have you reviewed your risk analysis and mitigation strategies?
29 Have you reviewed your project constraints / assumptions and checked that they are still valid?30 Have you created project contingencies? eg additional time, funding or resources which can be called upon if required

Consulting Profile

With skill backgrounds in Accounting, Payroll, HR, processes, project management and IT, we can rapidly contribute to time-critical projects by providing the expertise, focus and drive needed to meet key deadlines.

Axia Philosophy

Our philosophy is to involve client’s staff as much as possible, whilst providing the in-depth expertise. So client’s costs are minimised and all concerned obtain a complete understanding of the solution.

We believe in providing outstanding quality and excellent value for money.

We continuously aim to be responsive, flexible and provide personal attention to our client’s needs.

For more information about Axia’s services visit: consulting services / system selection and shortlisting service / client case outlines / commendations

The hidden costs of new software

One solution is to identify the total cost of ownership, not just the software, as clearly as you can prior to acquisition. If you establish and compare the total costs associated with each software package for 1 year and 5 years from the date of acquisition, you will have a much better idea of what to expect. Fairly obviously, a low cost for software does not necessarily mean that it is the best overall value.

Another solution is to look out for potential hidden costs and either include them or a contingency, and then manage them as best as possible at the time they occur. To help, here is a (not exhaustive) list of such potential hidden costs:

The software application licence - the modules you really need, rather than what you would like to have (or be talked into), what the prices are based on - number of concurrent system users, number of employees or records (eg for Human Resources Software), number of transactions or a mix of these? What are the different price bands? How it will work out for your organisation?

Training costs – number of days and day rate. What is the typical amount of training required for the average customer and specifically, what would be required for your organisation? What is the cost of setting up a training facility on your site? Or to use the vendor’s facilities?

Vendor support services fees eg for interface development, report writing, implementation consultancy assistance. Other support services eg contractors, temporary staff (plus their agency fees) to assist with the implementation. Annual licence fees – are these charged? And if so are they on top of, or instead of annual maintenance charges?

Hidden costs of acquiring new software

It starts with the software vendor’s additional costs (after all they are in business to make money) and carries on throughout the implementation.

One solution is to identify the total cost of ownership, not just the software, as clearly as you can prior to acquisition. If you establish and compare the total costs associated with each software package for 1 year and 5 years from the date of acquisition, you will have a much better idea of what to expect. Fairly obviously, a low cost for software does not necessarily mean that it is the best overall value.

Another solution is to look out for potential hidden costs and either include them or a contingency, and then manage them as best as possible at the time they occur. To help, here is a (not exhaustive) list of such potential hidden costs:

The software application licence - the modules you really need, rather than what you would like to have (or be talked into), what the prices are based on - number of concurrent system users, number of employees or records (eg for Human Resources Software), number of transactions or a mix of these? What are the different price bands? How it will work out for your organisation?

Training costs – number of days and day rate. What is the typical amount of training required for the average customer and specifically, what would be required for your organisation? What is the cost of setting up a training facility on your site? Or to use the vendor’s facilities?

IT Project Proposal

The 2 main types of internal IT project proposal for replacing business systems, such as a CRM system are:

•    outline proposal for system selection and system replacement in principle – to obtain approval for limited funds to undertake the system selection process
•    detailed proposal to implement a replacement system – carried out at the end of the system selection process – to obtain approval for much larger funds to purchase software, hardware, consultancy, training and implement the chosen system

If your organisation has a defined internal project approval process or framework, you will have to closely follow it if you wish to obtain project approval. If there is no defined process, you will have greater choice as to what and how to include in a proposal. But this probably makes it harder, so consider the following points when preparing your IT project proposal:

Ensure you fully understand the business and end user needs for the project. If you have yet to prepare more than a ‘back of the envelope’ spec of requirements, these RFI/RFP Templates can help you to quickly and easily prepare your requirements specification, RFI and RFP. Make sure the business and user needs (requirements) are crystal-clear in the proposal.

Understand what the other key project drivers are eg cost containment, time scale, project quality. Once known, make sure you give this adequate emphasis within the proposal.

Next, consider the proposal recipients ie the executive management / board, what they are looking for, the information they require and what is important to them and the organisation. Then provide the information they require eg if they want details give them, if not don’t. If you are unsure what they want – find out, before preparing the proposal. Picture them going through your proposal with a checklist – does your proposal tick all the boxes?