If you are considering improving your business (in the area of software and systems), there are several questions that many business owners raise.
We have grouped these into Software and Systems
SOFTWARE:
1. What is the best software for my business? 2. How much will it cost? 3. Is training really worth while? 4. I use a spreadsheet for my daily business activities. What are the advantages in using dedicated software instead? 5. My accountant prefers me to use ...... software. What are your thoughts on this? 6. If I install new software, will I see better results in my business?
SYSTEMS:
Question1
Question2
Question3
Question4
1. What is the best software for my business? Unfortunately there is no such program as the "best" one that serves everybody and still provides good value. If your business has a turnover of $50million, your needs (and also your budget) would require you to look at different software solutions to the business that has a turnover of $50,000.
The basic reports that you need are similar, but the functions and method of processing would be vastly different.
A single user system is different to a client/server style of program.
A major criterea that you have to look at, is what does your business actually do? Are you a manufacturer, an importer, distribution company, service based, job shop, or whatever.
Each industry has particular needs that have to be addressed, whether it be management, reporting, government control, etc.
What we are saying is "It is impossible to give a simple answer". You must be aware of what information you need to control and manage so as to optimise your own business. Do not accept blindly the advice of another (including us) without questioning the benefit to you and to the other party.
2. How much will it cost?
At the lower end, software is available from retail outlets and can vary from $200 to up to $1,500. This level of software is considered by many as not requiring any training. See our FAQ about training.
A reasonable guideline for the investment (not the expense) would be a budget of 1% of your annual turnover. This would include the cost of implementation, training and 12 months support. The actual software should be about half of the actual investment.
Again a lot depends upon the complexity of your business operations and how many people need access to the system over the computer network.
3. Is training really worth while?
Training is what turns the purchase of a new system from an "expense" into an "investment".
In this scenario, having all relevant staff getting the maximum from the system will benefit both the staff and the company.
Having a system that will automatically generate new leads, more sales per customer, at a higher dollar value and more often will only occur when the software is installed correctly, set up for YOUR business and staff are aware of what the program can do.
Yes, training will pay for itself.
4. I use a spreadsheet for my daily business activities. What are the advantages in using dedicated software instead?
These are fine for casual use and are easily modified to incorporate changes - and this is one of the major risks in using a spreadsheet - they can easily go wrong.
Nearly all dedicated software, whether it is used for invoicing or production control, is based on a database format that allows for unlimited expansion.
Assuming that we are talking about "operational" activities, using a specific program that links back into your accounting program will save you lots of time and give you financial data that is far more accurate & up-to-date.
5. My accountant prefers me to use ...... software. What are your thoughts on this?
The real question here is: How can I get unbiased and reliable advice on this?
Every business is different (some differences are obvious and some are not), but at the same time, the basic functions of accounting and book-keeping are always the same.
Your accountant may be correct, but please ensure that the software will be chosen for your business needs, and not just to keep the accountant happy.
So what are the factors that you have to be aware of:
Do you manufacture goods?
Are there multiple offices / locations / warehouses / outlets?
Do you sell over the Internet?
Is scheduling important?
Is continuity of stock important?
How "big" do you image your business will become?
Is mainenance of your (or your customers) equipment relevant?
Do you buy or sell on "consignment"?
Do you have service technicians on the road?
And these are just some of the questions that need to be looked at .....................Will your accountant know what software package is best for YOUR business?
6. If I install new software, will I see better results in my business?
The simple answer is YES!
But to achieve this, define what those "better results" would be.
Work with your own staff, then with the consultant and define what are your goeals from the exercise.
Commit yourself to provide the intial and follow-up training so that your team know how the new software will assist them in achieving those goals.
Do these simple steps and the project should be successful, whether your goals are financial, lifestyle or expansion/growth.
Every aspect of the business will be effected (production, sales, purchasing, HR, marketing as well as Admin) - so work together.
Copyright @2008 John Barnett Information on this page is generic by nature and should be used only as a starting point for your own situation Contact us on 03-9727 3337 (Aust) or +61 3 9727 3337 (overseas) for more specific information.
