There are huge technological advancements in financial software packages these days and new names popping up all the time. If you're thinking about changing your financial accounting software, you'll need to make sure you keep the various considerations in mind.
In the past few weeks, I've had several conversations with clients and sector colleagues about which brand of financial software to use and whether this one does the job more efficiently than that one. I'm asked regularly whether there is one particular name I would recommend, which is a difficult question to answer because every business has a slightly different requirement.
Here are some aspects to consider:
Integration with an existing software
Your business might need a financial software that integrates with another one; for example, a business financial reporting software that will integrate with a project management tool or, in the case of law firms, with client matter reporting under the SRA Accounts Rules.
Useful add-ons
Some of the newer systems come with very useful functions which will scan and recognise receipts before posting them to the right ledger account. If software can't cope with an automatic download from the business bank account or if it can't generate and electronically file the quarterly VAT return, then you might want to consider a system that can.
Will it do the job you need it to do?
Companies promoting a new brand of financial software are very good at telling you every little thing it can do and why you should choose theirs over someone else's. But not so many of them take the time to understand what you need and whether their software has the functionality to cope with it. In a law firm, if you need the software to automatically allocate client interest, make sure it can. In an architectural or surveyor practice, if you need the software to automatically update hourly charge-out rates when staff salaries have changed, make sure it does so.
Bespoke upgrades
There are a number of software systems that are inexpensive to buy but will only give you standard functionality and reporting unless you pay more for the bespoke, most expensive version. Sometimes the standard version might exclude a tool you consider essential such as a cash flow report telling you how your money is being used in the business and what it's being spent on.
Preparation and testing
Software is only as good as the data put into it, therefore it's vital to ensure data from the old system is transferred correctly and tested prior to going live. Salespeople and technical staff from the software companies do not always have financial accounting knowledge and it is common to find problems such as bank accounts not reconciling and ledgers being mis-coded. It is well worth asking your accountants to review the transferred data to make sure the first reports coming out of the new financial software make sense.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
