10 tips for selecting a financial system | When evaluating financial systems from various suppliers, the following points can be helpful: |
1. Select a complete solution
Obtain a complete overview of the functionality that is actually included within the solution you are purchasing. Many suppliers offer a range of versions and varieties of their solutions. It is generally thought that you shouldn’t pay for more than you actually use/require. Therefore, you should ensure that the financial system you decide to purchase contains the required functionality.
You should also request an overview of the costs for extending the solution, as you may find you require extra functionality at a later date. You will often find that suppliers offer many additional modules which differ in functionality and price. It is often a good idea to get a complete overview of these additional modules before deciding upon which financial system you are going to purchase. For example, how much do the modules for customer management and e-commerce cost? And, how much would it cost to connect additional users to the system? You may find you require these as both your business and number of employees grows.
2. How much will you perform yourself?
Many businesses use accountants to look after their accounts (whether it is their entire accounts or just a section). You should therefore determine which tasks the accountant is actually going to perform. An up-to-date, modern financial system is your most important resource for critical information about sales, liquidity, and customer information. As a result, many people decide to look after the accounts themselves, with accountants taking care of payroll tax and other specific areas.
3. Uncover the actual price
Make sure you find out the true Total Cost of Ownership (TCO). This is the total cost of purchase, installation, and management of the financial system. You should be especially aware of hidden costs that can be involved with an IT-investment. There can be a reduction in the effectiveness during start up or in relation to the changing of routines, as well as extra costs for training, and those costs associated with the integration of other systems. A TCO will give you some direction; however, you should also look into the costs for subsequent years.
4. Requirements of software and security
Check what infrastructure is required in order to use the financial system. For example, some systems require their own web-server in order to use an e-commerce solution. You should also check that the database is included within the price. If you are required to pay extra for an SQL database, the total price can become more than what you originally expected.
Another important aspect is security. If you run your own server, you must take care to secure your data. A practical solution is to make sure that you have run a backup of your data, and that this is secured against theft and fire.
5. Support and maintenance agreement
A good support and maintenance agreement from your supplier should cover all of your requirements for user support. However, equally important is ensuring that your financial system is safe, and that it is updated with the latest rules and regulations. You may find that the maintenance and support agreements are separated into two invoices with varying contents. Are you required to pay for updates with new functionality? Are you required to pay for new user manuals? Does the support agreement contain unlimited access to the support department via telephone, or is this an additional cost?
6. Unnecessary limitations?
Check carefully what the limitations within the financial system are. It can be unnecessarily expensive if the supplier has limitations on the number of journals, the number of transactions, or the amount of storage space available within the database.
7. Do you require help?
If the business would like installation to be performed by the distributor, it is important to check what is included in the installation. If the system requires setup assistance from a consultant, as well as database and report configuration, it can often lead to a surprise invoice. Remember that tailor-made solutions can be very effective in covering special requirements, however can be difficult and expensive to maintain.
8. Integrated online solutions
If you are looking for a financial system that can be used via the Internet, you must consider various distributors and the drawbacks they may have for your business. An online financial system allows you to access information regardless of where you are, and allows you to save time and resources on IT-management. With one local installation, you are not dependent on Internet access and have greater flexibility with integration between other machines and software solutions.
The world is constantly becoming more integrated, and your customers and suppliers expectations of what you support with the electronic distribution of information increase. Be sure that you select a supplier that has these solutions accessible when you require them.
9. Take care of your accounts history
If the business wishes to convert old data, obtain specific information about how much the supplier charges to convert data from the businesses existing financial system.
10. Courses and training
Get an overview of what courses and training are required in connection with the implementation of the new financial system, and investigate what your supplier can offer in regards to this. | |
|
