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7 Deadly Sins When Selecting AE Accounting and Project Management Software

It should be so simple! If you’ve ever been a part of selecting new software for a company, it can end up being more difficult than you thought it would be. One of the biggest concerns people have is whether they might be overlooking something important or forgetting to ask critical questions.

It’s no secret that selecting the wrong software (or even software company) can cost your firm money, loads of time and a lot of pain.

Gathering all the key criteria important to different stakeholders in the firm can also be a daunting task. However, as you’ll see below, having a good plan is critical to the success of the purchase.

SEVEN COMMON MISTAKES TO AVOID

Mistake # 1. Not involving the right mix of stakeholders can kill your ROI

If your goal is to purchase an integrated software platform that will be used firm-wide, make sure you involve at least one major stakeholder from every department in the evaluation process.

Too often, firms will involve someone from accounting and a principal and then assume their project managers or business developers will adopt whatever tools are purchased. It’s critical to have principals involved to make it a top-down process, but to truly protect your investment and get the firm-wide benefits you’re seeking, you need a range of end users at the table to get their buy-in from the beginning. Ask these end users to look at their specific tools and features and get their commitment to spending the time to learn how to use them.

Mistake #2. Not having a training and implementation plan in place

Unfortunately, getting buy-in from others in the firm during the software selection process is not enough. If you want your project managers to build and maintain their own project budgets, teach them how to use the tools to do it. If you’re expecting that people will be able to run their own reports, show them where to go and teach them how to read them.

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It’s a good idea to have one internal person leading the charge on the implementation and training for the firm. However, you don’t want to end asking them to learn how to utilize their tools and also learn the rest of the platform and then teach others in the firm how to use it. It certainly can be done but remember how much is already being ask of your accounting staff.

Mistake #3. Don’t just look for software that is really close to what you already have.

Change is difficult and we all want to minimize the impact when possible. However, no two platforms are exactly the same and making a software decision because one platform is closest to what you have already is not always in the best interest overall for your firm. Yes, there is a chance that it might be helpful for getting the accounting department up-to-speed quicker. But, focusing too heavily on finding something similar can cause a decision that is detrimental to the success of the firm.

Because your firm will have this software for many years to come, consider all options that can help make any needed firm improvements or could be better for getting the greater firm-wide adoption you’re seeking.

It’s important to consider that many firms have actually altered their business around their older software. Adding new software is an opportunity to reevaluate what you’re doing instead of looking for the option that fits into the “ways we’ve always done things.”

Mistake #4. Buying software without really researching the provider

You’re not just buying their software, you’re trusting that the provider is going to be there to support it and continue to make improvements. It’s no secret that a number of software vendors have been purchased in the AE industry and are no longer around.

Look at the company’s track record and ask the hard questions. How dedicated are they to your specific industry, do they have a good history as a profitable company, or have they experienced a lot of employee turnover?

Talk with other users of the software to make sure they feel they have the support they need and are seeing ongoing software improvements. Do their current customers feel they are being listened to? Are their executives accessible or are they more concerned with shareholders or stretched across a variety of industries?

Mistake #5. Basing too much of your decision on price

Of course price is important and every firm must work within a reasonable budget. However, historically, AE firms have used the same financial software for 10 years or more. Some firms have learned the hard way that saving some money on the front-end can end up leading to some painful days down the road.

Price should be replaced by value and evaluating which features and functions are most important to your firm.

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Mistake #6. Buying software without considering your hardware needs

Looking at the minimum technical requirements that a software company says you need to have is not enough. Consider how resource intensive other pieces of software are, before adding something new.

Because your database is dynamic and will continue to grow, it’s important to look at where you are installing the software so you can keep your future growth in mind. Moving stuff around later can take time and money,

What is the age of your hardware? The average hard drive lasts three to five years so if your server is over five years old, it’s something to look into. However, a word of caution; make sure your IT staff isn’t using the new software purchase as a reason to upgrade to the latest and greatest “toys.”

Mistake #7. Not speaking with references at a company similar to yours

Every company should have a customer base that will sing about their love of the software. The software company should be able to provide references but don’t be afraid to ask for a firm similar to yours.

Do your own research as well. Get in touch with people in the industry who you trust and find others who are using the platforms you’re evaluating.

THE BOTTOM LINE

Don’t rush. At the same time, don’t make things so complicated that you fear a bad decision to the point of no decision. Neither will help the firm.