Accounting Software For Businesses of All Size

Selecting new accounting software requires more time than most businesses realize. To complete the proper amount of research and assessment of various programs, most business owners should expect to spend weeks, not months, instead of days or hours. However, once the right solution is identified, the improvements that it can help the company realize are often well worth the time spent selecting the software.

One of the first things you’ll do when selecting new accounting software is to look at the processes that your business currently uses and see if there are ways to use software to make those processes more efficient. Many companies use the implementation of new financial software as a good time to also change some processes to gain more efficiencies from the new software’s extra features. If you consult with financial software reviews, you’ll see that the market for accounting software is roughly divided in to four segments: entry-level, small to medium scale business, small to medium scale enterprise, and enterprise resource planning.

A brief overview of each segment follows.

Entry level software is designed to work best with small businesses (those with 20 or fewer employees and less than $5 million in sales). Roughly 5 million companies in the US meet the profile for those that are best suited for software within this segment. This is the largest group of companies and is often the reason that accounting software guides exist – to help smaller businesses choose new software.

Small to Medium Business (SMB) software is designed to work best for companies with $5 to $100 million in sales and no more than 100 employees. This is the second largest market segment and estimates say that about a half a million companies in the US could benefit from new software designed for businesses of this size.

Small to Medium Enterprise (SME) software is the next step up and is designed for even bigger companies – those with up to $500 million in sales and up to 500 employees. Approximately 17,000 US based companies fit this profile.

Enterprise Resource Planning (ERP) software is designed for the largest companies and can accommodate well over 500 employees and billions of dollars in sales. The number of companies that fit in to this segment is fewer than any other segments, although some estimates have claimed as high as 17,000.

These segments are only roughly defined guidelines for looking for new software. These are not rules that must be followed. Some businesses that fall in to the the SMB category may find that ERP software is actually best for their applications due to it’s additional flexibility or other features that the company may need. In this case, they should opt for the ERP software.

When selecting software, make sure you know what you require from the new accounting package and keep those requirements in mind. This will allow you to avoid purchasing modules or features that you do not need in the new software. Overall, software designed for larger and more profitable companies come with more capabilities. In some cases these capabilities can be beneficial, but it is also important to note that this is not always true. At times, additional capabilities that are not used can actually slow down the software.

At the same time, purchasing software with too few capabilities can also create problems. If you purchase software without a module that you need, you may be forced to use an outside application to run that process, which can cause headaches as well as present problems with compatibility that can add costs to the overall project.

Alex Monroe is a freelance author with many areas of specialization. He offers advice for selecting new accounting software for businesses of all sizes at his financial software site.

9 Steps to a Hassle Free and Effective Software Development Project

By ExecutiveBrief Staff

Has your company developed entirely new software or added to software already in use throughout the organization and found the process cumbersome, frustrating, and sometimes not living up to expectations or meeting organizational goals?  If so, the solution to a smooth and effective development program may be as easy as staffing a well-qualified project manager and adopting a proven development process.

For any software development or other project initiative your company may be considering, it is critical to have in place and practice a set of effective and proven guidelines to ensure project success and delivery of the expected results:  taking into consideration the role and responsibilities of a well-qualified project manager, knowledge of important business and financial aspects, and a step-by-step process that all contribute to the solid foundation and implementation of an effective project plan.

Developing a Practical Approach: The Role of the Project Manager

When undertaking a software development project, the first element to consider is the establishment of a comprehensive yet practical approach to the initiative that ultimately will lead to a successful end result.

The in-house project manager has a key role in ensuring each phase of the project is carried out as planned.  The project manager is responsible for considering the potential risks involved with the project and how to avoid and resolve them, establishing and maintaining momentum throughout the project, ensuring individual project team member tasks are assigned appropriately and carried out according to specifications, and successfully addressing and resolving any conflicts that may arise during the length of the development project.

A well-qualified project manager is able to address what may seem to be an overwhelmingly complex process by developing an organized approach where the process is broken down into manageable individual tasks and understanding how to keep those involved in the project dedicated to the ultimate goal of meeting and even exceeding the expected end result.

If the project manager dedicates the necessary time, effort, and resources to the preparation of an efficient, comprehensive, and practical approach, then the project team may progress with ease and confidence as they deliver on their individual tasks, having a solid foundation and strategic framework at the outset. Far too often, however, failures with such projects are the result of not only a poorly executed plan, but one that ultimately lacked the fundamental elements of a well-though-out approach rooted in adequate preparation and commitment from the project manager and project team.

Designing a strategic plan means taking into consideration all aspects that can contribute to success or potential failure.

Embarking on the Initiative: Key Steps to Consider

With a comprehensive approach and a competent project manager in place to guide the new software development initiative, there is another important element your organization may find helpful as you embark on the project: establishing specific steps that can be followed to project completion that are based on proven industry experience in such a project environment.

Following are a set of practical guidelines to approach a software development project, established by two university professors and business consultants with specialized expertise in the computing, engineering, and general business environments.

Dr. Gordon Scott Gehrs is an adjunct instructor at the Illinois Institute of Technology (IIT) and a business consultant for the Jules F. Knapp Entrepreneurship Center at IIT. Dr. Dorota Huizinga is associate dean of the College of Engineering and Computer Science and a professor in the Computer Science Department at California State University, Fullerton, as well as a frequent business seminar speaker, a business consultant, and co-author of Automated Defect Prevention: Best Practices in Software Management.

Read on for nine key steps to consider as you embark on a software development project.

Step #1: Conduct Feasibility Analysis
According to Dr. Gehrs, a critical first step is to interview stakeholders in order to uncover whether a specific need exists, identify this exact need, and determine whether the proposed project can feasibly deliver the expected software development. “Many times, this is the point at which an ROI study will be carried out in order to determine project costs and benefits,” says Dr. Gehrs.

Step #2: Analyze and Determine Requirements
When it comes to the next step of determining requirements, Dr. Gehrs believes a proper analysis should consist of interviews with end users and others who will be associated with the new software system. In addition, a thorough review and a keen understanding of user documents, business rules, and processes are keys to determining appropriate and necessary features and functionality. This is a valuable and significant step in the development process and the point at which such deliverables as those documents outlining the scope of the project and those detailing the software product requirement will be produced.

Dr. Huizinga notes the importance of having the minimum technology infrastructure in place before beginning a software project, which include:

• Desktops for development with an advanced integrated development environment suite.
• A server with a configuration management system for document tracking and version control.
• A staging server for integration testing and a production server for deployment of the final product.
• A requirement/task/defect tracking tool.
• An automated build system.
• A regression testing tool.
• An automated reporting system.

“Investing in the proper infrastructure is essential and will pay back quickly,” asserts Dr. Huizinga. There are three key elements the proper infrastructure provides:

• Product and project visibility
• Automation of repetitive and mundane tasks
• Facilitation of collaboration

Step #3: Consider Industry Best Practices
When defining a software development process, consider proven industry best practices. Dr. Huizinga recommends a good, customized Agile process with emphasis on pictorial documentation both for requirements and technical documentation. It is important to follow a standard template and all activities should be traceable through a requirements/task/defect tool and shared document repository.

Step #4: Design
During the design phase, the software architect, programmer, and/or developer may put together a detailed design document outlining exactly how the software will meet the specified requirements. Dr. Gehrs recommends the use of mock-ups to accompany the design document as a way of illustrating user-interface elements.

In some cases, customization is required in order to meet specific, individual project needs. For example, Dr. Huizinga notes that this might include the use of specialized COTS (commercial off-the-shelf) hardware and software components. The wide spectrum of products from databases to game engines is dictated by the market shift to customization of existing commercial applications to fit project needs rather than in-house development of such systems. According to Dr. Huizinga, COTS can offer higher quality because they are developed by vendors who specialize in systems that provide the required functionality and are well-tested by many users.

Step #5: Measuring and Tracking Progress
Without the proper technology infrastructure in place, it is difficult to collect and measure key project data. “Consequently, the software projects cannot be managed effectively,” says Dr. Huizinga. Project indicators can help to ensure the prompt identification of potential or existing problems, therefore allowing them to be recognized and remedied in a timely manner. When observed over an extended period, notes Dr. Huizinga, these indicators can be used to determine product quality and deployment readiness.

Step #6: Development
At the development phase, the design document is translated into a real piece of software. When prior careful planning has been executed, the software will match the requirements of the business driver that initiated the need for the project. Dr. Gehrs points out that development cycles may produce several versions of the software:

• Alpha: preliminary feature/functionality only
• Beta: used for internal testing or usability testing
• Release Candidates: usually a very stable build that may need minor tweaks
• Production Build or Gold Master: ready for release.

Project managers need feedback on the user’s navigational experience, task-completion times, ease of use, and other information related to the user interface and user-centric elements.

Step #7: Addressing Automation
Another key step is to ensure the automation of repetitive tasks:

• Code builds;
• Static code analysis scans;
• Regression tests;
• Collection of project- and product-related measures.

Dr. Huizinga believes that taking such measures reduces the error-prone human influence when the software is implemented. It also facilitates the use of best practices and collection of project-related data. “All repetitive and mundane tasks should be automated whenever possible in any portion of the software life cycle,” she adds.

Step #8: Testing
As the project continues on through each phase and on to testing, a general progression of action is as follows: software features are laid out in some sort of list, scripts are written for each task the user might perform, and those features are tested to ensure they function properly. Dr. Gehrs points out that testing also may vary quite widely depending on the individual testing procedures adopted by the organization. Testing can consist of several sub-stages as well, such as quality assurance and staging.

Once the software is in general use, any bugs found at this point are addressed based on a criticality scale: urgent fixes are scheduled to be carried out as soon as possible. In addition, feature enhancements/changes may be slated for future upgrade versions.

Step #9:  Gradual Implementation Practices
“Incremental implementation of the above practices is critical to success. The approach of gradually introducing change group by group and practice by practice is essential to achieving the desired organizational culture change, as change is unsettling, and there will always be some degree of resistance,” points out Dr. Huizinga. Because of the complex nature of software projects and the technology involved, new software development warrants this systematic approach.

Understanding the role of the project leader and importance of having well-thought-out development processes in place may be a company’s only real competitive advantage in an increasingly competitive marketplace.  It is the ultimate secret weapon to winning business and successfully delivering new easy-to-use software.

With workable and disciplined software project guidelines and well-qualified project managers, your organization can’t lose. 

ExecutiveBrief, the technology management resource for business leaders, offers articles loaded with proven tips, techniques, and action plans that companies can use to better manage people, processes and tools – the keys to improving their business performance.
For more information visit us at: http://www.executivebrief.com.

Make Sure Your Accounting Software Has a Clean Layout

The layout of an accounting software package is much more important than the aesthetic benefits that it provides. Although some argue that accounting software reviews give too much attention to the layout and user interface of a software package and should pay more attention to the software’s functionality, do not overlook the importance of having software that is easy to use and understand.

In fact, having accounting software with a clean layout that is easy to use is probably more important than other software that the business uses and should be one of many factors that you consider when choosing new software.

Having a clean layout is important because accounting is complex and difficult to understand – especially for individuals with minimal accounting experience. Even the terminology – credits, debits, assets, and so on get confusing to some and can be the kind of things that turn people off from accounting, despite the importance of it. This is why it is important to find software that makes entering information easy and possible without knowledge of what kind of transaction was just completed (in accounting language). Once the info is in the system, the software also needs to be able to generate reports that can be understood by someone without an accounting background.

This is not to say people that use accounting software are dense. Quite the contrary. However, in most cases, businesses do not want to spend time doing something that is complicated that they may not completely understand if there is software available to do it for them. Reviewing financial reports is imperative to success of a business and is an ability that all companies need. Having to create those reports, however, is not the kind of thing that most companies want to spend time on as it doesn’t contribute directly to their profitability.

For most small businesses, therefore, the ideal accounting software is something that is easy to use but powerful. Information should be easy to input and reports should be easy to understand. The heavy lifting that is done in the background by the software is important in the sense that it must be done correctly (which it will be) but it is not important that the business necessarily understand how those calculations were made.

It is also important to note that a clean interface does not imply software that is less powerful. In some cases it does, but it does not have to. Instead, a clean interface should make the software easier to use and translate in to more efficient analysis of costs and revenues.

For example, most accounting software will include an invoicing feature. Some software will begin with the accounting ledger and give users the option to create a custom invoice from the ledger. However, this is not the easiest method to complete this task for most users.

An easier manner to create the invoice is to create the invoice and have the software automatically update the ledger. Therefore, as the invoice progresses (issued, sent, paid), the ledger will automatically be updated by the software. Since the invoice will need to be processed anyway, eliminating the need to interface with the general ledger saves time and makes the entire process more efficient.

If you’re searching for new accounting software, check software review sites and look at screen shots of the software’s interface. This should give you a good idea of how easy to use the software will be for you. If the interface looks complicated, chances are that it is and you should look for a better solution.

The goal of getting a new accounting software package should be to save time, and consequently money. Therefore, the easier the software is for you to use, the less time it will take the more you will benefit from the software.

Finally, keep in mind who will be using the software. If you find the interface simple but know that you won’t be doing the majority of the interfacing with the software, get input from the end-users before selecting new software. In nearly all cases, new software will require some training, so remember to factor those costs in to your budget.

New accounting software should add value to your company. Make sure that you choose a package that will not be so cumbersome to use that it takes time and money away from revenue-creating tasks.

David Kraft is a freelance author with many areas of specialization. He offers advice for selecting new accounting software for businesses of all sizes at his accounting software guide site.

Software Training Myths Rebutted

What’s Your Excuse? Dispelling the Myths about End-User Training

In 1999, Intraware, a growing online source for IT and software solutions, decided to implement a new sales force automation application. The implementation failed. One of the major reasons for the failure was Intraware’s failure to provide end-user training.

“We trashed the whole thing and seriously thought about walking away at that point,” said Shaun Fenn, director of sales information systems for Intraware in Emeryville, California.

Once Intraware provided customized outsourced training for their end users, the software worked well for the company and they finally felt like the migration was worth it.

Unfortunately, Intraware’s story is common. When most companies purchase new software, the purchasing decision is made based on the software’s features and its potential to increase productivity. Rarely do decision makers consider that employees must know how to use the software for it to deliver what it promises.

To keep your company from making the costly mistake Intraware did, we at BrainStorm, Inc., the Novell Authorized End-User Training Partner, have addressed the most-common excuses for not training end users. So whether you’re upgrading or migrating to GroupWise 7, read below to find out why you shouldn’t skimp on end-user training.

Our employees are too busy to train.

Your users may complain that they don’t have time for a half day of on-site training, but they’ll end up spending time learning the new software with or without training. The only difference is the amount of time they’ll spend.

According to a July 2000 Gartner Group study, “twelve hours of formal training equates to 72 hours of self-paced training.” So, users will spend six times as long figuring out the program on their own as it will take to train them to use it.

Formal training won’t only save your users the time it would have taken to figure it out on their own; it will also give them extra hours of productive time. An end user survey conducted by Novell and BrainStorm in 2002 found that 90 percent of end users saved at least an hour per week as a result of the training they received, and the majority of those users saved three or more hours. With the time employees can save and gain by being trained, they actually can’t afford not to invest the time to attend a training course.

End-user training costs too much.

With all the costs associated with a software migration, or even an upgrade, you may think your budget can’t justify training. The fact is your migration will end up costing more if you don’t train your end users.

A July 2000 Gartner Group study found that “wasted end-user time, due to a lack of training, accounted for the biggest piece of the software spending pie.”

Not only does the wasted time contribute to higher software cost, but when your employees don’t use all the features included in the software, you end up paying for features your company doesn’t use. A September 2001 IDC study found that without training, employees use an average of only 13 percent of the features in their desktop software tools. That means the other 87 percent of features you purchased are a wasted investment without spending some money on training.

Further, the return on investment for end-user training shows that without training, you won’t capture the productivity gains you were planning on when you bought the software. If you use the results from the above mentioned BrainStorm and Novell study and say that conservatively, each trained employee saves at least one hour per week, then training one employee making $40,000 a year will save the company about $1,000 in the first year. Further, for every 100 trained employees that make $100,000 your company will save $250,000 a year. (See chart.) That’s saving ten to twenty-five times more than a half-day instructor-led training course costs, which may be more justifiable than even your original software purchase.

We can train our users in-house.

When justifying the total cost associated with an upgrade or migration, you may be tempted to think you can decrease the software budget by taking care of training in-house. After all, you have a budget to hire extra help, but your training budget is spent. When you look at the total cost of developing training courses and materials, however, in-house training doesn’t have as many benefits.

Although a professional training company like BrainStorm can spread out the cost of developing training courses and materials among several clients, when you develop and implement in-house training, your company absorbs all the associated time and cost. Plus, because in-house trainers usually lack training expertise and experience with the software itself, in-house training quality is usually quite poor.

According to a 1997 Gartner Group study, the following are costs associated with poor training: dissatisfied employees, lower productivity, poor customer service, the need for extensive follow-up training and support resources, decreased efficiency, less efficient business processes, and increased administrative expense.

Companies like BrainStorm that cater specifically to end-user software training, and even more specifically to GroupWise training, can help eliminate most of the costs of poor in-house training. Having trainers with more than 1000 hours of experience teaching a program, and solid research to back their training methods, reputable training companies know how to help users get excited about software, increase their productivity by using it, and retain what they learn. In-house trainers cramming to learn a program that don’t have training experience can’t provide that quality of training.

Additionally, reputable outsourced training companies like BrainStorm, will provide follow-up training and a variety of training materials to make sure new hires are trained and employees have resources to which they can turn.

Users can learn from the help files

From the volume of “how to” help calls your IT department gets, you probably know that help files aren’t enough to help your users.

Several studies, including a June 2003 study published in Information Systems Research show that “behavior modeling yields better training outcomes than other methods, such as lecture-based instruction, computer-aided instruction, and self-study.” This behavior modeling training method, which is watching an instructor perform a behavior and then attempting to reenact it, is also the best method to use for all learning styles.

A study in the Spring 2000 Information Technology, Learning, and Performance Journal showed that trainees taught with a behavior modeling approach “were not influenced by learning style and . . . had the highest levels of satisfaction and computer use.” This behavior modeling method is the one that independent training companies, like BrainStorm, use to help employees learn and then retain what they learn.

These studies also show that hands-on training that mimics everyday tasks is more effective than abstract training. Help files are abstract and are not designed to help users accept all e-mails from their bosses, schedule constant office meetings, or create unique work schedules, for instance. To effectively use help files, employees must first determine what language the software uses to define the task. Only then can they search for the help file. This is not only less-effective; it also decreases productivity.

Users don’t need training to e-mail.

When you were sold on GroupWise, chances are it wasn’t its capacity to manage e-mail that impressed you. If that was the only feature you needed, you would probably buy a lesser program. Similarly, if you want users to get as excited as you are about GroupWise and if you want GroupWise to deliver on the promise of making your office more productive, you should provide a way for your users to learn about its other features.

Collaboration software is used more often and by more people in your organization than any other desktop application. Therefore, end-user training for this software will be the most useful and increase productivity the most. As mentioned above, studies have shown

that employees use an average of only 13 percent of the features in their desktop software tools. When the most powerful features in the remaining 87 percent go unused, your company essentially wastes the money spent on those features.

Plus, the goal of a reputable training company isn’t to make all your users advanced, it is to teach them to use software tools and get them to an intermediate level, therefore making their software use productive, not just functional. (See Training Curves, above.) When employees know how to use their software to be productive, the company saves money.

Training can’t help my users accept the new program

Often one of the biggest obstacles to migrating or upgrading is the level of user acceptance. If users have preconceived negative notions of what the upgrade or migration will mean for them (loss of time, increased frustration, loss of productivity), they will be less likely to use and accept the program.

A study published in 2000 in Information Systems Research, concluded that there were at least six factors associated with helping reluctant employees accept a program: (1) users’

confidence about their ability to learn and use new technology, (2) an IT-supported work

environment, (3) how much users actually use computers for enjoyment, (4) the level of general computer anxiety, (5) how much computers actually contribute to job ability, and (6) how much satisfaction users gain from simply using a new system. Hands-on training from a motivated, experienced trainer solves at least four of these factors.

Training can’t change some of the attitude factors like how much employees use technology out of the office for fun. Training, however, can help with the other factors: increasing confidence in learning ability, having a supported environment, decreasing the level of computer anxiety, increasing how much an application actually contributes to job function, and increasing the level of perceived enjoyment.

Not all types of training can accomplish these goals. First, trainers must be experts on the

software. This expertise makes users feel like they are in a supported environment. When

trainers are experts, it also makes it easier for them to make using the program look easy,

decreasing the level of computer anxiety in the trainees. Second, when trainers use real-world, hands-on examples, they increase how much trainees actually use the software for real job functions. And third, when trainers are motivated and excited about the software, they increase the level of enjoyment for their trainees simply because trainees pick up on their excitement.

At the same time, when users accept a program quickly after effective training, they also retain more information about the software, and start using it immediately. This makes their program use stick. When users know how to use the software from the beginning, they’re happy to use it for as long as is required.

Because we’re upgrading, users can figure out the new features.

Although it’s true that most features of an application stay the same in an upgrade, enough new features are introduced and enough of the user interface changes to merit end-user training.

If untrained users use an average of only 13 percent of the program they’re currently using and don’t know about many of the advanced features in the current program, chances are they won’t know about the new features in the upgrade and also won’t know how to use them. It’s hard to justify the cost of an upgrade if your employees don’t use the new features you’re paying for.

Also, for most users, just switching a few buttons on the interface in an upgrade can be confusing, let alone changing the entire interface. It may be true that your users won’t need as much training for an upgrade, but they still need to be trained to make the upgrade investment worth the cost.

We’ve had bad experiences with outsourced training before.

Poor training experiences can definitely cure a company of paying for end user training again. When training isn’t effective, it’s hard to justify its necessity. But, training methods and the quality of trainers differ significantly among training companies.

For instance, the job description for a prominent training company’s instructor position reveals a lot about what kind of trainers they hire. The company says the trainer position is entry level and the instructor will teach several software applications. Previous knowledge of the applications is not required, nor is previous education or training experience. When you hire this company, therefore, you can expect to get a trainer that has minimal knowledge about the application he is training on and may or may not know how to manage a classroom. The trainer may feign excitement about a memorized lesson from a workbook, but he won’t know how to answer the toughest questions because he isn’t an expert.

A study published in the Journal of End User Computing in 2002, found that trainer behavior had much to do with how effective end user software training was. In fact, the study identified 53 characteristics effective trainers should have. The characteristics were summarized as follows: “Effective end user software trainers [should be] able to design and manage a course in such a way as to communicate [their] knowledge to a group of trainees, in an atmosphere that is sympathetic to their needs and feelings, using appropriate training techniques.”

In addition, a company’s training techniques should be designed to get the maximum amount of learning and retention in the least amount of time for the most people. As the above mentioned study in the Information Technology, Learning and Performance Journal found, this best method is behavior modeling.

The behavior modeling style of training, the one BrainStorm uses, is a method in which trainers show trainees how to perform real-world examples and then ask trainees to mimic their actions. This hands-on, real-world experience helps users retain what they learn and use their newly acquired skills.

There’s no excuse for not training your end users.

With all the myths about end-user training dispelled, your company no longer has an excuse not to train your end users. The cost is justifiable after you look at the return on investment. The time to train is minimal when compared to the time your employees will save, and inhouse training can’t compare to outsourcing when you consider training effectiveness. Because you can’t assume all your users are on the same level as an IT professional, you must assume they need training. As Intraware learned in 1999 and countless other companies have learned the hard way, there’s no excuse for skimping on end-user training.

Brainstorm, Inc

http://www.brainstorminc.com

Lindsay Hepworth

Brainstorm, Inc
Software Training