Advising clients on accounting software

Advising clients on accounting software

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Just wondering if anyone else gets asked to recommend software? If so, how much time do you put into helping? Do you look at industry specific software to meet their needs or just go down the bog standard recommend Sage route?

Thanks!

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By skylarking
09th Sep 2009 16:11

Bog standand route has changed
It's now 'anything BUT Sage'.
With the choice in the market place there has to be a compelling reason to recommend Sage and that reason shouldn't be accountant's apathy.

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By User deleted
09th Sep 2009 18:16

Unfortunately it is apathy!

My experience is that accountants are apathetic or lazy and still recommend Sage without looking at what the market has to offer.

I believe that part of the reason for this is that they do not want to show their ignorance or at best lack of understaning of IT and software.

 

If so, don't get involved in something you don't understand - you want be doing your clients any favours.

 

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By User deleted
09th Sep 2009 21:34

Accounting Software
There is software exhibition called softworld in October. Some of the major accounting software suppliers should be exhibiting. It is worth a one day visit to understand what is in the market.

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By jacp400
10th Sep 2009 06:35

Get advice
Hi, I have been selling accounting software for nearly 15 years. Mostly in the reseller channel although 4 of those years were running a software dealership within a very large firm of accountants.

Of course Sage has it's place but in that time I've seen so many accountants recommend Sage as the easy option when it's just not been appropriate.

My favourite was a company on the M40 whose external accountant recommended Sage 50 when there was so much they needed that wasn't in Sage 50. They needed;

- Cost centre analysis
- Serial/Batch tracking
- Advanced Sales Order Processing
- Large Bill of Materials
- True multi-currency
- 8 concurrent users

The accountants answer to all of these was to manage it in a spreadsheet but this creates considerably more work for the client, means data isn't shareable, and makes reporting a difficult and manual process. Most importantly it introduces an element of risk to the client if data is incorrect or omitted.

In my time I've found quite small clients who benefit from some having something more comprehensive, and £100m turnover businesses who are quite happily running on Sage 50. Every case is different.

My advice is to partner up with someone in the industry that you feel you can trust to give you objective advice for each of your clients. A 10 minute conversation with you or the client can more often or not define whether it's likely that Sage 50 (or similar, or one of the online packages) is appropriate, or whether it's worth investigating something more substantial.

I hope that helps. You're welcome to contact me if you require any assistance.

Best wishes.

John Clough
Technical Director
www.enhanced.co.uk

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By User deleted
11th Sep 2009 11:38

Advise that client goes to Soft World

 I am an accountant in industry.  A few years ago we needed to change our accounts software and went to Soft World. It was a day well spent and we were surprised by the number of offerings.  Most packages are similar in terms of the 3 core ledgers. The big differences are in stock and job costing. If your client only needs the 3 core financials  the choice boils down to cost and ease of use.

Any package will probably be in use for many years so that ease of use is vital.

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By RogerNeale
11th Sep 2009 12:23

Accountants shouldn't get involved

It's a pity that a lot of accountants don't stick to accounting.

If I want advice on my accounting, I go to an accountant, if I want advice on building work, I go to a builder, for electrical work, I go to an electrician, for security, I go to a security consultant. They are all specialists in their own field.

The same should apply to software and I.T. systems, go to an I.T. specialist not to an accountant who just sells Sage because Sage encouraged  them sell their software.

If the client wants accounts software, Sage may be appropriate, but there's lots of good stuff on the market with some even being free.

However, if the client wants a "business managent" system, incorporating accounts and credit control, to help improve productivity and efficiency, they should go to a specialist.

As an accountant, you will find that we "business systems consultants" are able to look at much more than just the accounts requirement and many, like me, will offer the accountant a commission for successful leads.
A good "Business Systems Consultant" will always want to speak to the accountant at some stage during the process.

Roger Neale
Business Systems Consultant
Perkeo Computer Systems Ltd

Tel 07714 670 789

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By chatman
11th Sep 2009 14:06

"Accountants shouldn't get involved in choosing accounting softw

Yes, that's right. Whenever I want to know about accounting I ask a guy who has made up a fancy title for himself. Beats accountancy expertise any day.

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By dialm4accounts
11th Sep 2009 14:51

Aim to meet the client's needs and yours too

I have advised clients on what software to choose before.

It's a huge area.  There are so many packages out there.

I'd recommend that all accountants who are recommending software should be comfortable with a selection, from the simplest bookkeeping software like Cashflow Manager, through an online solution like FreeAgent or KashFlow, to a bigger package like Sage 50 or Pearl, and if needed, punch above that.

If you're going to advise clients on which package to choose, I'd recommend doing the following:

Talk to the client, long and thoroughly, about their business.  What areas of software would be vital / important / useful / a bridge too far?  Does the client really need sales and purchase order processing / stock control / multi-currency?Assess how capable the client (or their bookkeeper) is at using an accounting/bookkeeping package.  Personally I would never give Sage to anyone who didn't have a good grasp of double entry bookkeeping.  A good way to assess that is to ask "In the bank account, is money that you pay into the bank a debit or a credit?"  If they say a debit, that's good news.  If they say a credit, don't put them on Sage.  Consider a simpler package if their business requirements permit, or offer to do their bookkeeping within your firm.Based on the above, try and recommend a package from your selection.If none of your selection suit, consult an industry expert or software consultant.

M

www.homebusinessaccountant.co.uk

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By paulm.baase4it.co.uk
11th Sep 2009 15:59

Accountants - they are in the right place but need advice.
Many accountants have the trust of their clients; this is why they are asked for assistance.

I have run previously a department with a large accountants firm that just dealt specifically with this area. I now run Baase Ltd which works with accountants to help advise on business systems. Accountants should be able to talk about systems to help provide accurate and meaningful accountancy information.

This obviously has its place, where Baase work with accountants is to advise on business wide systems incorporating, CRM, Stock Control, Sales and Purchase orders, Web integration, bespoke application etc etc.

This knowledge of business processes needs and requirements is often found lacking in a typical accountancy firm.

My advise for accountants is find a business system advisor to work with, know your limitations, work together to provide the solution. You will end up keeping the client longer and add another reason why they should stay a client of yours

Paul Marshall
MD - Baase Ltd
01746 861016

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By listerramjet
11th Sep 2009 16:50

Its not about fancy titles
this is a specialist area. even with the smallest of clients you need to meld accounting, business systems and IT skills to do it well.

My fancy title is Systems Accountant. I have spent more years than I care to remember advising on, implementing, and managing financial and business systems. It is something I enjoy, and I have a background in accounting, accounting systems and IT.

The frustration I remember from my practice days was smaller clients who implemented something new without any reference to their accountants, and as a result got in a mess. As has already been said here, it is a mixture of skills that is required, including accounting skills - something lacking in the typical small company. But I can also understand why they did not engage their accountants in the process - something about billing by the hour, and no particular confidence that their accountant had the first clue.

Which I think is where this question comes in. And the recommend question may well be followed by the help question. But if you are not sure then I would say don't do it.

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By Darren Garland
11th Sep 2009 17:49

You will not be thanked for abusing your clients trust

I think it is inevitable that most SME's will turn to their accountant for advice on which accounting software they should use. Inevitably SME's have limited accounting knowledge and therefore are turning to their "trusted advisor" in accounting matters because:

·         They know little about accounting software
·         They want a warm feeling that their accountant can work with the software package they choose
·         They may want to get advice from the accountant on how to use the software

An essential part of the service an accountant offers is to give this type of advice to their clients. If they cannot they should have someone trusted who can give that advice on their behalf.
As to whether an accountant should just solely recommend Sage, I agree with the overwhelming consensus of answers above - definitely not.  One size does not fit all in this field and your client will not thank you for recommending a package that is inappropriate for them.
 
So how do accountants stay up to date with all the packages that are out there. Obviously they cannot, it is an impossible task. One of the quick wins for them is a more modular based package.

Recent advances in Cloud technology have allowed the introduction of more modular based packages. These allow elements of the package to be turned off to simplify the package or additional modules to be added to make the package more capable and suitable to the client’s needs. This obviously helps the accountant as it allows an element of tailoring the package to the business needs, rather than the nebulous, one size fits all approach that has gone on in the past. This also has the added advantage of not having to invest in learning the ins and outs of lots of different packages. If you have not looked at a modular based package it is certainly worth investigating further.

So in conclusion, I think that an accountant that is asked by a client to recommend a software package should definitely take this opportunity to get involved and try and find the best fit they can for their client. This time spent will pay dividends later in terms of strengthening the relationship between the accountant and client. 

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By bencooper
17th Sep 2009 11:49

Gold Dust

In my experience a recommendation from an accountant is like gold dust and so making sure that recommendation is informed is very importnant as 9/10 times that is what the client will go with. The sad fact is though that most recommendations are wrong or have gone down the bog standard Sage route.

Sage is fine, in its place, but you need to understand what that sweet spot is as it is very easy to stray outside of that and then the client has to buy additional applications of start replicating stuff in Excel.

The market is changing and so you need to keep up to date. A few years ago the choice was shrinking with huge levels of consolidation taking place. But today it is growing again and there are more choices than ever, especially with the advent of web based accounting.

It is true to say that the vast majority of applications 'do the accounts' and if your client only needs 3 ledger accounting then Sage or Quickbooks are the obvious options. However, as soon as they need anything outside of this they/you should be widening your search area.

In my view accountants have 3 choices:

1. Get involved. Look at your client base and spend some time researching the options which fit that criteria. Understand why they are different and in what circumstances you should put A forward instead of B. Make your receommendation an informed one.

2. Make contact with an independent consultant with experience of the market. This shows impartiality on your behalf and helps the client get the option which suits them best. Dont go to a reseller, they will sell their application regardless of fit. In many cases a consultant will not only help them to understand which products to look at but will also stay on and help them implement it which is hugely valuable. They do not have to spend millions £ either. Most decent consultants will do a search and selection on a fixed prices basis. Have a look at www.recenseo.co.uk for an example

3. Dont bother. Remember what your Granny said - If you have not got anything worth saying, keep quiet. An uninformed recommendation is worthless and risks your credibility and sanity (when you get a pile of junk in for audit!).

 

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By haseet
18th Sep 2009 12:10

Provide assistance to the client to select the right solution

I’d confirm the client’s key requirements. There are instances where Sage “out-of-the-box” fits: small client, basic core ledgers  and limited reporting needs. But a little beyond this the continued use of spreadsheets to manage the business process isn’t a good idea for a new system.

 I would recommend you assist your client to select the correct product & partner – treat it as a joint decision. You can help with due diligence and also the accounting features, your client can then select on the look and feel. Both will have to judge on the partner, it will be an important aspect of your decision. Look for a product that’s got longevity – will the software author be around in 5-10 years time. Is the author investing in the product or are they just collecting support revenue from the current user base. Does the product have a design/architecture to support growth: does it integrate with other products easily, will it work with new versions of Windows and Office, and can it be run both on premise or as a hosted solution. Finally does it do what you need it to and does it work the way you do. There is a compromise between functionality and cost; the software will be able to do whatever you require, but is it a standard feature or will it need to be written. Work out the key requirements and ensure they’re achievable within your budget.  Have a look at Microsoft Dynamics, I’d recommend it highly – but I am slightly biased. Haseet Sanghrajka, Managing Director ST Consultingwww.stconsulting.co.uk

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By onesys
24th Sep 2009 15:52

Advising clients on suitable suppliers / products / services can

Hi

Many accountants will get asked about suitable suppliers / products / services by their clients.

Be prepared!

Keep a list of contacts / products that other contacts have praised in the past.

If you are 'on the spot', Google it. The best will always 'float to the top'.

We have a network of financial and IT consultants who are familiar with our offerings. They will gladly suggest us as one solution provider who may have the right answer for their clients, when the question pops up.

Give your client 2 or 3 options, so they can make the ultimate choice but they don't have to waste time re-searching the whole market. You help them without forcing their choice.

Hope this helps.

Gil van der Sluis

www.onesys.co.uk

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By Alexander Rosse
30th Sep 2009 14:12

Rivalling market leaders

We are the only organisation that can offer a free Xero software trial lasting from now until 31 January 2010. Others only offer one month, which is useless when every business has a monthly element to their accounts. You have to really use the software to truly understand how powerful and easy it is to use.

So increase your efficiency and service quality through e-accountancy.

http://www.alexanderrosse.co.uk/signup.aspx

Let us know what you think.

 

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By stevehutchins
16th Nov 2009 11:19

[email protected]

The BASDA approach recommends that buyer organisations adopt the ‘Request For Information’ approach. This involves collecting detailed requirements from the various departments within the organisation, distilling this into a shortened Summary of Requirements, which is then sent to a selection of suppliers to see how their software fits the broad requirements. The supplier response can then be evaluated and a shortlist drawn up, which provides a focussed approach for a more detailed investigation into the software and service requirements.

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By User deleted
16th Nov 2009 12:59

only just seen this.

"just go down the bog standard recommend Sage route?"

Dear God.  It's incredible that anyone could write that.  It's frightening.  Are you SERIOUS that you think there are others out there who just "recommend" Sage when ANY client, regardless of size, shape, sex or colour, asks what software they should use? 

Well, there certainly are some.  I have just come back from a meeting with a prospective client who asked his accountant could he change to X package because it suited his business purpose.  The accountant recommended he use Sage instead (spread sheets had previously been used).  The reason?  The accountant used only Sage and knew nothing about any other sysyem.  Well, it was f9ne to say "I only use Sage".  But the accountant made no attempt to say to the client (i) what do you want from the system and I can see if Sage can provide it?  (Sage could not have provided it as it happens, but that is not the point of course)  (ii)   you should move acccountant if you really want that system, as I am not going to try to use it with you.  Unbelievable.  Talk about whose interest the accountants are acting in.  Unhappily, in  this case, both parties sleep walked into disaster.   And court action is inevitable.  So the accountant (rightly) loses the client, but only after a year of terrible grief for all concerned, and at the cost of claim and counter-claim (and professional body complaint).  It's just lazy and unprofessional beyond belief.

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