CHOOSING A FINANCIAL MANAGEMENT SYSTEM

There are several key issues to consider when selecting new financial and accounting systems.

1. Draw up a detailed list of all the functionality that the organisation needs most from the new systems. Whatever the benefits of technology, the system must meet the fundamental functional requirements.

2. Ensure that the people who will be using the system most and those who intend to benefit from the information it provides are involved in the selection process. Most important, remember that many new staff are going to have access to information. As the guardian of the information, recognise that many of these new users will require help and guidance in identifying and understanding the implications of the interactive access to information. It is outside all their previous commercial experience.

3. Do not use third party consultants to select system. At most, they should be involved in helping to draw up requirements and advise on needs. The final decision must be that of the people who will use it.

4. Make certain that all selection criteria are agreed before vendors are asked to submit demonstrations, particularly that all the most important abilities of a new system are taken into account. However, ensure that you have taken full advantage of the opportunity for the prospective vendors to explain other opportunities available to you, which you may not have considered, or even been aware.

5. Vendor presentation must all cover the same ground, as it is no good being shown smooth demonstrations of only the best features if these are irrelevant to the business needs. Ensure that these presentations demonstrate the use of new technologies you wish to utilize.

6. Make a value decision on the differences between the solutions. While a particularly piece of functionality may not be available within a given product, other unique features may offer a far greater saving than the loss of another. This may well involve offering new services that have not previously been available. Balance the advantages against the disadvantages.

7. Reference from other user sites must always be taken up, preferably in the same or related industries where the burdens placed on the system will be of similar intensity. However, recognize that a direct industry competitor is extremely unlikely to want to spend time helping their rivals.

Avoid wasting resources (time and money) on financial management systems by not taking above points seriously.

A case in point is a company that hastily tried to implement an accounting system without taking the decision seriously. The company assigned responsibility to the company secretary, who had very little knowledge and experience. The result is that after spending £150,00 on the project it became crystal clear that a big mistake had been made. The project was abandoned.

We advised the company on best approach and project managed the implementation of a suitable system that was priced at £8,000.

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