Increasing business efficiency without putting a hole in your pocket, makes real sense. As business owners look for ways to compete, if not survive the current economy, I thought it might be valuable to outline some simple steps to take before making any costly decisions on business software.

Implementing or changing business systems/software is a huge step for businesses of any size. Whether you are moving up from a basic business system or entry level accounting software, it is important for business owners to do their research.

The natural instinct of most businesspeople is to find a solution that reduces costs and overheads. But software solutions can last 1, 5 or 10 years. So a thorough long-term strategy is needed for supporting the changing business environment.

The first place any business owner should look when analysing their business’ needs, is their own backyard – particularly at the systems that should be providing a window into how things really are. At a time when customer demands are changing rapidly, needed is a real and right time view on all components of your business workflow cycle. You can meet market demands and improve business efficiency with accounting and business workflow solutions like Jim2*, which provide an all-in-one system that goes beyond traditional accounts information. It simplifies and incorporates all elements of a business into the one integrated information resource to provide an accurate window into your business.

So what should you be considering when choosing new business software?

1. Business Growth

Will your software grow with you? The decision you make today will have ramifications long after you have paid your money, installed the software and entered your first transactions. Whether you add staff or resources, your software solution should be supporting growing business needs, rather than adding to your administration. As your customer base increases, the last worry you want is whether or not your accounting software can keep up with change. Moving to an integrated system that brings all of your accounting, reporting, purchasing, resourcing and scheduling tasks together is definitely worth serious consideration.

2. Location, Location

Was the software developed in Australia for the Australian market and for Australian users? Being able to contact the software developer directly means faster, more efficient and more reliable service when you need it most. Australian-based developers and support staff can provide immediate contact and advice. It is important to identify a software solution that is constantly revised and improved to keep pace with your market needs. With local technical support, these updates should be efficient and cost-effective.

3. Support you can count on

One of the major frustrations with any business software is when you are having difficulty executing tasks. If support is not local, are they contactable in your business hours? Is support included in the price of the software? If not, it could really cost your business. If you personally know the people who have created and supported the software, your problems and needs can be addressed individually, and solved according to your specific requirements

4. Staying on top and up to date

Is your software updated regularly, using customer feedback as a guide? User feedback and software revision by the developers is the key to making the best software possible. Without customer feedback and the follow up of that feedback by the developer, how does the software developer know that customers are extremely happy? Regularly updated business software means you are using the absolute latest technology. By keeping technologically updated with competitors and the industry, your business has the advantage of being prepared for the next stage of growth.

5. One size does not fit all

Are the people setting up your software able to achieve the maximum benefit to your business? Among all the available options, there are software solutions for your industry, and there are software solutions that are uniquely tailored to fit your business’ needs and demands. Which one should you choose? The only way to make a brilliant piece of software is to talk to the users of that software on a regular basis. By having the developers of the software conduct the installation, you gain a much more personal service than third party consultants can provide.

6. Kick off to the right start

How will your business software be installed? Before the installation process begins you should ensure that preparation work is completed before the installation date; the business will experience minimal interruption; and if both systems have to run side by side simultaneously to make sure the new one does its job.It is too late once the implementers are at your office installing the software. Do not be trapped into paying for services you did not or could not foresee because of poor planning. When changing business software, you need a solution that can run independently from day one, while causing minimal disruption to business workflow.

7. Not just numbers

Does the software help manage all aspects of your business, or simply your accounting? A business system needs to be more than just numbers. As your business grows, the only way to control the resources in your business is to put in place certain procedures and processes. These are the rules that will ensure that actions within your business are performed correctly, accurately and in the right order. Purchasing, point of sale, accounting, reporting, recording jobs – all these business processes need to be documented and built into your operations. Typically business systems in the price range of small to medium business do not contain process-driven management systems, however they do exist.

8. “All in one” solution

What additional system will you need to complement the accounting software? If you’re looking for a software solution that goes beyond accounting, you’ll probably be searching for a solution to customer relations management, resource planning, point of sale, job tracking, warehousing, manufacturing, open to buy spreadsheets, machine tracking and reporting. For optimal productivity and cost savings, you need a solution that contains all the systems you need in one. An “all in one” business workflow management solution provides a clear window into every aspect of your business, enabling business owners to pinpoint when and where mistakes are being made, and how to fix them to maximise profits.

9. Does new software mean new hardware?

Changing software is also a good time to be taking a close look at the hardware that runs your business system. You will need to assess what hardware is required to run the new software, devise a back up strategy if needed, and analyse how to make the best use of your current resources. Whether you use a server and who looks after your network are also influential factors.

10. Subscription based software

When will my software be out of date? Subscription based software means paying a yearly subscription fee to be able to continue using the software. Subscription based software allows a software developer to continue to improve the product, release updated and improved versions of the software, and also to continue to provide customer support for the software. Subscription based software has the advantage of never actually being out of date as it is improved on a regular basis, often up to twice a year, and these improved versions are available at no extra cost to the subscriber above what they normally pay.

11. Proven track record

Are you able to speak to other businesses freely about their experiences with the business software you are considering? Speaking to other businesses about their experience with the installation, training, easy of use, migration process and benefits of the business software is probably the closest thing you can get to surety of the claims made by the software salesperson you have been dealing with. While software companies may have quoted you for the software and installation alone, often is the case that there are hidden extras involved. After-sales costs such as custom report writing, additional modules and support that are not covered by your licences can add up to the same cost as the software itself. Ask for references. People currently using the system will have ponied up their hard earned business cash to buy the software you are looking at. It will pay dividends to get their opinion and learn from their experiences. At least two customer references should be mandatory in your due diligence process in selecting your business system.

I bet you noticed there are 11 items on that list. That’s because there is a LOT to think about when looking at different types of business software. Purchasing business software is a big decision. Current assessment of your business is crucial, as well as using your business plan to dictate where you want to be in 1, 5, and 10 years. Your business system is either going to be the vehicle that will take you there, or the hindrance in your quest for growth and efficiency.