There is software for almost everything. The one thing missing is software that chooses software for you.
When running a business, you will be pressured into improving efficiencies and creating automated processes, which software can often provide. However, just as a good software selection can assist your business, poorly chosen software can have negative effects which will waste time and money. Here are a few key pointers we suggest addressing before you make your next software decision.
1. Plan for the best usage, expect the worst
Don’t be sold nirvana. You will rarely find a business that uses software to its full potential, and if they do, they’ll still have a laundry list of things they want to fix.
When looking at a new technology for your business, consider what would happen if you only achieved the lowest level of implementation. Will the software provide any value at this stage?
Prime example, the fabled CRM.
If you only use the CRM as a digital contact book, would it still be worthwhile?
This isn’t a tip to reject any software that doesn’t overcome this threshold, rather it’s an early indication on the effort and dedication required to make the chosen software have a positive impact on your business.
2. Take the time to quantify expected improvements
Many people would have come across an administrative ‘weapon’ throughout their career. Someone who completes standardised tasks, so quickly, so efficiently, you cannot help but watch in awe.
Now imagine you are replacing their tools and processes with a new software that still requires manual input.
Has the time to complete their work been reduced?
Have the reports generated from their work been automated?
What are the immediate benefits of this new software?
Once you dig deep and estimate immediate, as well as future impacts of a software, you might be shocked to find there aren’t any positive ones in the short term. Highlighting this matters for planning, implementation and change management in your team. Promising a new software that improves workflow and efficiencies, only to deliver a clunky, equally manual software is a bitter pill to swallow and can stunt staff adoption. Extra tip: if your administrative tasks are truly standardised, consider a robotic process automation tool such as UiPath, which can automate repetitive, rules-based tasks.
3. Pricing comparisons
Software pricing norms have evolved over time. Fixed terms and unlimited users have made way for flexible engagements that charge by the ‘seat’. Seats can be deceptive.
Our key tip here is short and simple: forecast more seats than you need when comparing prices. Check the provider’s current pricing page on the day you decide, because plans and prices change often.
There will almost always be ad hoc requests from senior leadership, new starters, or unaccounted staff to have a seat. So, instead of watching payments balloon, account for additional seats before any engagement and ensure it is still within your price range.
4. Plan for larger teams
When deciding on new software, you can often fall into the trap of only finding a software fit for your current team. Avoid this and check the software can grow with the team you expect to have in two or three years.
Ensuring the chosen technology has collaboration capabilities, access hierarchies and clear audit trails will help your business increase the number of users and teams without costly restructuring required later.
For any software that holds financial or employee data, also check the data controls: who can access what, whether multi-factor authentication is available, where the data is stored, and how easily you can export your data if you leave. Make sure it connects with the systems you already run, especially your accounting software, payroll and bank feeds. If the decision is the accounting package itself, see how to choose the best accounting package for your business.
5. Assign responsibility
Our final and arguably most important point is ownership, responsibility and accountability. When a decision is made to select a software and implement it within your business, you need someone to take ownership for this decision. Notice we say one person, not a team. One named person should be accountable for the decision, the rollout, the future roadmap and how the software is used day to day. If left to a team, responsibility can be handballed, final decisions are often left ambiguous, and points of contact are left scattered.
Choosing the right software can make a real difference to how your finance function runs. Visory runs bookkeeping, payroll, and accounts payable and receivable for growing businesses, working in accounting software such as Xero, MYOB and QuickBooks. If you are weighing up finance software, your dedicated team can talk you through how a tool would fit with that work. Book a discovery call to check whether the systems you use are a fit.
About this article
Written by The Visory Team. Published . General information for Australian businesses, not advice for your situation.
