Can you Personalise your Accounting System?

There's nothing wrong with buying an off the shelf accounting, payroll or CRM system if it meets most of your current needs. If, however you feel your business will grow over the next few years, you should consider the configurability of your business system to avoid the high changeover cost.

There are varying levels of business systems out there from rigid entry level systems like Quickbooks and MYOB to fully customisable packages such as Sage CRM and Sage Accpac ERP.

Typically all small to mid size systems will be relatively quickly to implement provided you accept a best practice template, but as a business evolves, it's needs may result in inefficiencies in processing day to day activities.

For instance, you may need to record aspects of attributes of customers that just won't fit in any of the available fields within your CRM system. Some systems anticipate common expansion requirements by preallocating an number of "unused custom fields". The better systems allow you to define your own fields and map them to screens without much effort. Custom workflow can also be defined that controls when these variables appear and alerts others of required activities when concern conditions are met.

These sorts of systems are often more cost effective than performing manual external processes with spreadsheets for instance or rekeying duplicate information across disparate systems.

More information: Axsapt

Middleware - Bridging Disparate Systems

As businesses evolve they tend to adopt more than one software system to manage their varied transaction flows and processes. Examples include:

• Financial Reporting
• Debtors and Creditors
• Inventory
• Manufacturing Systems
• Job Costing
• Time and Billing
• Payroll
• Human Resource Systems
• Point of Sale/Cash Registers
• Debtors Ledgers
• Procurement Systems
• Sales Force Management
• eCommerce and Web Sites

There's nothing inherently wrong with multiple systems, but every so often, it's a worthwhile exercise to review these systems with a view to identifying inefficiences. It may be possible to adopt or develop middleware software that will automate the communication between disparate systems.

Examples include transferring timesheets from Job Costing or Time and Billing Systems directly into the Payroll. Or polling Point of Sale Cash Registers at regular intervals to provide turnover and profitability reports at head office.

There may come a time in the business lifecycle however when the benefits of building additional middleware outweigh the costs of migrating to comprehensive integrated Enterprise Resource Planning ("ERP") Systems.

More information: Axsapt

Modular Accounting Systems vs ERP Systems

Growing companies that find they are straight-jacketed by their current accounting systems, typically are faced with the difficult decision of upgrading. They can choose to implement either an all encompassing system or bolting on smaller applications to add capabilities to what they already have.

The first approach, typically an ERP (Enterprise Resource Planning) system, deals with every aspect of business: from controlling marketing campaigns and sales reps, order collection, product warehousing and distribution, payroll and HR, workflow, reporting, financials and more. ERP systems are excellent but be prepared for long and costly implementation projects.

The second method: adding functionality to a core accounting system, is usually much less stressful and costly to implement. The pitfalls may include: duplication of data (such as customer records) which may be overcome with newer systems designed with seamless links. In many cases, the modular approach ends up a better solution as the individual modules are purpose built with more capabilities than ERP systems.

Which approach is best? Firstly you must list and prioritise your requirements and note which are not adequately achieved by your current solution. The modular approach is only ever a viable option if you are relatively happy with your core accounting system and there are a range of available bolt on applications (to satisfy the missing needs) that link seamlessly with it.

In evaluating both options include all costs including additional hardware and system software costs, data conversion, configuration, testing, training and on-going support and maintenance costs.

The selection process is complex and often risky especially in recessionary times like today. You may choose to seek the advice of a Business Consultant with deep knowledge of a number of popular Modular and ERP Business Accounting Systems.

For more information, please contact: Axsapt