With the number of computerized accounting software packages available growing every day, selecting one that is right for you has become increasingly difficult. The needs of different departments pull the decision-maker in all different directions and one can feel overwhelmed with the pressure.
Whether you are looking to upgrade your current system or to install accounting software for the first time, the steps to a successful transition are in essence the same: determine what results you'd like to see (commonly called the "needs assessment" phase), research the available software options, and then select the best one that's within your budget.
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Accounting Specifics
Leave the limitations of your current software behind. Clarify all the accounting modules your department currently uses and requires and define all categories of accounting transactions your organization would benefit from.
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Information Needs
Identify all the information that flows through the accounting system. The ultimate purpose of accounting software is to report information in all the ways you need to see it.
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Information Sharing
What security or internal control difficulties would you like to solve? Determine the information-sharing requirements between the accounting systems and other departments.
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Transaction Needs
Do you need to track payments due from clients, customers, or members? Calculate the total number of transactions of each type for a typical accounting period.
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Report Needs
Distinguish all the different types of accounting reports used by your department and specify your custom reporting requirements. Consider the reports that would make life easy, that you'd like to be able to produce with a few clicks of a mouse.
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Data Needs
Define your specific data retrieval and reporting requirements and consider the other data management systems in your organization that you may want accounting to integrate with, such as fundraising or client management, so you can evaluate accounting packages from companies that market multiple products.
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Number of Users
How many people will use the software? How many of them will need to use it simultaneously? Determine how many users have administrative access to the system.
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Training Needs
On top of the purchase price, there will be installation and training costs that you will pay both directly to a third party and indirectly in the form of staff time. Ascertain the level of accounting and computer experience of potential system users and plan accordingly.
Most accounting softwares have been tested in the marketplace for many years, so it is actually quite hard to go completely wrong in a choice but if your current budget places too heavy a limit on the ambitions revealed by this needs assessment, consider postponing the transition until the next budgeting cycle or apply for grants specific to improving accounting and reporting.
Have an idea of the software you want?
Need help sorting through your needs assessment?
The experienced software consultants at Klear Systems team assists clients with their accounting software daily and would be happy to help you choose and implement the system that best fits your needs.
