Many software comparison sites have hundreds of vendors who pay them to be on their sites but rankings are often based on the “level of membership” that they pay for.   In other words, what you really need to know is not their #1 priority.   When putting together www.accountingsoftwaresuccess.com, we wanted to make sure that all vendors were treated equally.    Only one vendor is allowed on our site per product and everyone pays the same.   Our results are based solely on what your small business accounting needs are and which vendors can best meet those needs.

In our Library, you can also find checklists and road maps for implementing the software and other information to make your accounting software change successful.

About the Author

John S. Francis graduated with his MBA from Southern Illinois University- Carbondale in 1985.  Since that time he has worked in various accounting professions.   From 1996 to 2009, he was founder and President of one of the country’s leading accounting software implementation firms.  Acknowledged as a “Top 100 Technology Pacesetter” and a “Killer VAR” by Accounting Today magazine, and a “Top 100 Value Added Reseller” by Accounting Technology magazine, his firm successfully managed accounting system implementation and training engagements for thousands of clients worldwide.  In 2009 he began working on accountingsoftwaresuccess.com, a site dedicated to assisting accounting professionals with their search, selection, implementation and use of accounting systems. The site contains several tools to assist accounting professionals with their accounting software research including an Accounting Software Selection Tool and an Accounting Software Articles Library.

As organizations grow and become more complex, their perceived need for more specific functionality, able to efficiently handle their “unique” needs, drive their move toward a more vertical accounting software solution.  Developers who have written an application for a client in a particular industry may package that program as a vertical solution for other prospects in that industry.  Colleagues in that industry may recommend a package they use which is more industry specific.

But vertical applications also come at an increased cost.  Typically industry-specific accounting applications are in the mid-range market, or higher.  They often are packaged by modules, with the user selecting which modules they wish to purchase (further “customizing” the solution for the user).

The trend toward vertical accounting software solutions is increasing based on several factors.  First, savvy users are not satisfied with the efficiencies gained simply by automating transaction and account level reporting.  They want greater functionality related to their industry, such as depreciation and amortization calculations in real-estate firms, inventory for manufacturing, and job costing for construction.  Recognizing this, entry level, previously-horizontal software packages are now offering “industry specific” versions of their software.  So there is now Quickbooks for Retail, Quickbooks for Manufacturing, etc.  Also, mature horizontal products with broad customer bases have continued to enhance their product development to the point where they now include many functions previously only available in the vertical solutions.  Incorporating functions such as payroll, inventory, human resource management, and others make the previously horizontal application better able to handle a user’s specific needs.

Another trend making these horizontal applications more flexible is the growth of cloud computing.  Users may now share both the application cost and the infrastructure cost that used to prevent smaller organizations from fully capturing and sharing information across the organization.  Through the use of software as a service or hosted applications, the smaller organization may now demand, and be able to afford, greater functionality than ever before.

So it seems that the gap between vertical and horizontal packages is lessening, making the decision of choosing one over the other more difficult.  That is why it is critical to identify what functionality you require from your system before beginning your review.  You may be able to save tens of thousands of dollars by using a package that wouldn’t have worked for your company three years ago.  On the other hand, you don’t want to buy a system that won’t perform for you now, or grow with you in the future.  Consider carefully, and allow www.AccountingSoftwareSuccess.com to help.

Year-end

The answer to the question “When is the best time to migrate to a new accounting system?” depends on a number of factors.  Clearly one attractive alternative is the organization’s fiscal year-end.  By switching then, a full and complete fiscal year’s history is in the legacy system, and you can roll forward beginning balances into the new system.  Adjustments to the history (for instance audit adjustments) can be entered both into the old system and new system in order to keep the transition balances in synch.  At the end of the first year on the new system, a full and complete fiscal year is in that system in order to run reports and perform the audit.  That all is fine and good; however, the drawback is that we are now assuming we are going to implement the new system at one of the busiest times in our accounting cycle – year-end.  Typically at year-end we have depreciation calculations and other adjusting entries, audit preparation, year-end statements to produce, etc.  If you are on a calendar year you also have a multitude of payroll issues to deal with.  It may not be the best time to try to learn a new system and to train staff.  The addition of that task to an already heavy workload may result in a poor result – most likely with the implementation of the new system.

Mid-Year

So the alternative is to pick a time when the workload provides for a focus on the implementation of and the transition to the new system.  This could really be any time of year, based on your organization’s business cycle.  However, if possible moving this task toward the beginning of the year, or the end of the year, is typically best.  If you implement toward the beginning of the year, you might consider using the first couple of months of transactions (already processed in the legacy system) as training data in the new system.  This will build that history and, voila!, you have complete data.  Likewise, if you implement toward year-end, you could use the last couple months transactions as training data in the new system, and then delete those transactions before putting in new year beginning balances.  Again, you could still benefit from the vendors you’ve established, etc.  During this transition time you are also documenting procedures, refining controls, etc.  See our other articles at www.accountingsoftwaresuccess.com for further information on a well-planned implementation.

Conversion

Finally, if you are able to convert data from the legacy system to the new system this may also provide you additional flexibility in when you make the switch.  But beware – changes in account structure and codification of accounts, vendors, customers, employees, etc. will often complicate these efforts.  On more than one occasion I had to explain to a client that manually entering data was more cost effective than completing an electronic transfer.  And of course it’s not just the initial effort, but also time spent finding and fixing any errors that may be introduced during the transfer.

Finding the right time for your organization to make the switch can reduce the stress and challenges that the change will undoubtedly create.  Making a smart decision will give you better results, both initially and long-term.

Our Accounting Software Selection Tool provides a detailed questionnaire that allows you to review your needs and maybe think of areas that you’d like to improve efficiency on.   Are you doing payroll in-house?  Are you in need of a better reporting system?   The questionnaire take about 25 minutes but leads you to a detailed report of which systems will meet your needs best.

We also provide a quicker accounting software comparison report if you are interested in comparing vendors based on just a few important factors.   If shows you a side-by-side report of the functionality of the products.

Our vendors all pay the same so no one gets preferrencial treatment in any way.  It’s all based on YOUR NEEDS!   As you consider your accounting efficiency this year, please consider using accountingsoftwaresuccess.com.

The best accounting software for a large nonprofit may not be the best for a smaller nonprofit organization. Just as large corporations and small businesses often have different needs, nonprofits of different sizes will have different needs as well.

While a large nonprofit may need more intricately detailed software for public reporting and internal accounting, a smaller nonprofit may only need more general accounting processes that are fit for both public and internal reporting.

Large nonprofits will also have greater resources to purchase and implement more detailed accounting software that can accommodate larger databases and process information faster. Online small business accounting software may be a better fit for smaller nonprofits because their needs are probably more basic.

The question remains, however, how do you find the best accounting software for nonprofits, large or small? The answer is waiting for you at www.accountingsoftwaresuccess.com. Financial and accounting experts with years of accounting experience in the business world have assembled a list of quality vendors and products and provide unbiased reviews of each. Vendors are not permitted to buy reviews with advertising dollars nor are they guaranteed priority placement in searches via sponsorship fees.

Additionally, www.accountingsoftwaresuccess.com offers a great resource for finding the accounting software that will best help your nonprofit succeed. The Accounting Software Selection Tool is a comprehensive questionnaire that allows you to rank the tasks you need your software to perform by importance rather than just with a Yes or a No. The results will help you determine which tasks are the most important to your nonprofit and which products excel at those tasks. Don’t risk spending your budget on software that doesn’t meet your needs. Let the experts at www.accountingsoftwaresuccess.com match you with the right software the first time!

The budget spreadsheet allowed the user to input the requested budget amounts in to the line items contained in the spreadsheet.  The line items and totals were protected, so totals calculated correctly, and line item categories couldn’t be changed (and no additional line-items could be created).  In addition to those benefits, rather than manually entering the amounts into the our AS400 system, we were able to import the data, again eliminating much manual effort and the resulting opportunities for error.  Of course we had to manually “upload” the data into the main system and then review for overall completeness and accuracy.  There were always issues, but we were light-years ahead of where we were just a couple years before.

Fast-forward to today, and many companies are still using this process, thinking it’s the “cat’s pajamas”.  Well, it’s about as modern as that saying.  Remember, that was 1989.  Twenty-two years ago!!  There are now much more sophisticated budget workflow processes available to savvy users.

The most efficient process I’ve seen works something like this. The accounting system automatically creates a budget template for each budget area (cost center).  The template uses the appropriate codes for each of the responsible budget parties based on their account restrictions (those accounts they have responsibility over), including appropriate GL and sub-account combinations.  The “working budget” template can be initially populated using historical data (averages or period matching), or “zero based” budgeting can be used.  In addition, historical data (such as prior year actual or budget) can also be included as separate columns.

The responsible party is notified of the budget template availability via an e-mail.  The responsible party can then access the system and create budget requests within the template, along with complete justifications.  They may request individual amounts, an overall percentage increase, etc.  When their request is complete, they are able to indicate as such and the manager is then notified as to its readiness for review and/or approval.  The manager can then review their requests and approve them, or ask questions and return the budget for further modification.  Multiple levels of review can be included for larger organizations.

Once the budget is ultimately approved, it is then posted to the system automatically.  No import process is required.  All account and date validations are handled by the GL system, and of course, the budget is then available for comparative reporting, revenue/expense control, etc.  In many systems you can have multiple budget versions, project budgets, and so forth.

So let’s not get “stuck in the 80’s.”  Take budgeting to the 21^st century with budget workflow!  Visit AccountingSoftwareSuccess.com to see which systems make it available to you.

Many software comparison sites have hundreds of vendors who pay them to be on their sites but rankings are often based on the “level of membership” that they pay for.   In other words, what you really need to know is not their #1 priority.

When putting together www.accountingsoftwaresuccess.com, we wanted to make sure that all vendors were treated equally.    Only one vendor is allowed on our site per product and everyone pays the same.   Our results are based solely on what your nonprofit accounting needs are and which vendors can best meet those needs.

In our Library, you can also find checklists and road maps for implementing the software and other information to make your accounting software change successful.

About the Author

John S. Francis graduated with his MBA from Southern Illinois University- Carbondale in 1985.  Since that time he has worked in various accounting professions.   From 1996 to 2009, he was founder and President of one of the country’s leading accounting software implementation firms.  Acknowledged as a “Top 100 Technology Pacesetter” and a “Killer VAR” by Accounting Today magazine, and a “Top 100 Value Added Reseller” by Accounting Technology magazine, his firm successfully managed accounting system implementation and training engagements for thousands of clients worldwide.  In 2009 he began working on accountingsoftwaresuccess.com, a site dedicated to assisting accounting professionals with their search, selection, implementation and use of accounting systems. The site contains several tools to assist accounting professionals with their accounting software research including an Accounting Software Selection Tool and an Accounting Software Articles Library.

1.  Organize and save all receipts.   Not only for returns but if there are any descrepancies on your credit card bills, it will be easy to review if all your receipts are in one place.

2.  If you didn’t do a budget for your holiday shopping, at least review what you’ve spent.   One simple way is to do it right on your Christmas list; just write in a column for costs.   You might find that you actually have some money for a gift for yourself!!   I keep all my christmas lists in a journal that I use every year.   Then I can look back, review past gifts, and I don’t forget anyone!!

3.   Charitable gifts not only make you feel good, they help with your tax bill.   Many people find it easier and more fulfilling to give an annual gift to their favorite charity during the holidays.  File your receipts or note it on your bill or check, and let your tax accountant to do the rest.

4.  Don’t let your normal bill paying lapse.   Credit cards and other financed purchases are betting that you are going to get busy and pay a few of your payments late.  Many charge $25 or more in late fees so don’t give the lending institutions any “gifts.”

5.  Be patient.   This season slips by too quickly, and many people find they are stressed out and miserable.   Take a few minutes every day to plan, a few minutes every day to meditate or pray, and a few minutes every day to play!

We’d love to have your ideas and thoughts on the holiday season and year-end planning.   Contact us at www.accountingsoftwaresuccess.com/contact-us/ and by all means, enjoy the holidays!

Fund accounting systems help them meet those responsibilities, in ways that commercial systems cannot, by:

• Keeping a formal budget as part of the organization’s books (it may also be a legal document)
• Tracking and reporting accounting records separately for different funding sources, grants, departments, programs or functions (and being able to allocate expenses across these groupings)
• Tracking and reporting across different time periods (frequently not an annual basis), which often span multiple fiscal year
• Keeping funds separately, according to donor restrictions
• Measuring the success of fund raising events, programs or departments
• Tracking the ratio of overhead to program usage
• Tracking encumbrances; and,
• Producing specialized reports, including SFAS 117, for different internal and external audiences

Not only do nonprofits have to comply with the stringent reporting standards of the Financial and Governmental Accounting Standards Boards (FASB & GASB), but they must also respond to requests from many private and public granting agencies that require detailed reports in their own unique format.

Once nonprofits reach a certain size and have multiple funding sources, most of them find that commercial accounting software will not meet these special tracking and reporting requirements. Nonprofits find that attempting to use commercial accounting systems to perform these unique nonprofit accounting functions is impractical and difficult, as well as expensive to maintain. They often use spreadsheets to try to compensate for the software’s missing functionality; however, spreadsheets can be very time-consuming, easily introduce reporting inaccuracies, and the accounting system becomes too complex for anyone to follow. Also, custom modifications or overlays to commercial software pose high up-front costs and are very expensive to maintain and support.

Nonprofits find that the only effective way to fulfill their unique accounting requirements is with a good Fund Accounting System, because it is developed specifically for their specialized tracking and reporting needs.    To compare your nonprofit accounting needs to what software vendors offer, go to www.accountingsoftwaresuccess.com.   We offer free comparison tools and implementation assistance.

About the Author

John S. Francis graduated with his MBA from Southern Illinois University- Carbondale in 1985.  Since that time he has worked in various accounting professions including the Budget Director for the United Way of Greater St. Louis.   From 1996 to 2009, he was founder and President of one of the country’s leading accounting software implementation firms.  Acknowledged as a “Top 100 Technology Pacesetter” and a “Killer VAR” by Accounting Today magazine, and a “Top 100 Value Added Reseller” by Accounting Technology magazine, his firm successfully managed accounting system implementation and training engagements for thousands of clients worldwide.  In 2009 he began working on accountingsoftwaresuccess.com, a site dedicated to assisting accounting professionals with their search, selection, implementation and use of accounting systems. The site contains several tools to assist accounting professionals with their accounting software research including an Accounting Software Selection Tool and an Accounting Software Articles Library.

In addition to selecting the appropriate new accounting system, one of the most important decisions you’ll make during the course of a new accounting system upgrade is that of your implementation partner. Typically this will be an accounting software vendor, a value added reseller (VAR), a CPA firm, an independent consultant, or another trusted advisor.

Of course many users attempt to conduct the new accounting system implementation themselves. I would only recommend that if you have experience in the current version of the software and a thorough knowledge of the industry environment you are working within. In my relationships with clients I would always point out that they typically knew their needs and environment, and I knew the software. Yet neither of us “didn’t know what we didn’t know”, so to speak. So I might be able to suggest functionality or business processes the software accommodated that made their jobs easier and leveraged their software investment. Likewise they would often push me to get the software to do things that it maybe wasn’t designed to do, at least at first glance. It is truly a symbiotic relationship. I don’t think there was ever an installation where I didn’t learn something from the client, as I also imparted my accounting system knowledge to them.

Typically an accounting system vendor will have a certification process to train installers at one or more levels of certification. This might include “Certified Consultant”, or other formal status. Check with the vendor to see what their certifications are, and maybe get a list certified installers in your area. Oftentimes the individual or firm who has helped you through the due diligence and acquisition phase may be the defacto service provider. This makes some sense, as they have hopefully gained much knowledge of your business throughout that process. However, if you are unsure of their qualifications it makes sense to do a little research. Also a little friendly competition amongst competing installers may give you some leverage in gaining more value for your project budget.

Another important aspect is how many implementations of the accounting system has the service provider conducted? Most installers will be able to provide you the requisite 3 references – and you should follow-up with those. But does the installer have experience in your industry? Have they installed the most recent version of the software? Do they have multiple certified installers on staff? The greater their breadth of experience in environments similar to yours; the better the chance for a smooth installation.

Of course you’ll want to complete a Needs Analysis. If you have not completed one, many vendors have one they will walk you through. In fact, even if you THINK you know what you need, it sometimes helps to talk to the vendor to see what their other clients have done to make their systems more efficient. See a sample of a Needs Analysis document at AcccountingSoftwareSuccess.com, and our selection tool will help you identify many of your needs you can later discuss with your vendor.

To read the entire article, please go to http://www.accountingsoftwaresuccess.com/accounting-system-implementation/

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