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How Do You Choose a Financial System For Your Business?

24/09/2011

Perhaps one of the biggest decisions you will ever make about the management of your business but one that quite often gets little or no consideration or detailed analysis… which financial system should you choose for your business?

Almost all business owners have little knowledge of financial systems, what they need and what the systems have or don’t have to meet there needs. “I need quoting and progress billing and timesheets and job costing”. Yes but why? What about reporting? Can you review the jobs you have completed in  the last month side by side in the same report and see which one was the most profitable? If you have MYOB, for example, probably not.

Some tips on choosing a financial system for your business:

  • All reputable financial systems have debits and credits – that’s a given. So the crucial thing is for your new system to meet those specific requriments you have which are crucial to your business. Document the detail of the most important requirements you have in your business. e.g. Quoting and progress invoicing? Timesheets and Job Cost reporting?
  • Do your research on the internet and read the reviews on the potential systems.
  • Sign up for the free trials of the software – A lot are offering these nowdays
  • Don’t ask a consultancy or business that only pushes one product as they will try and “fit” their product to your requirements. Only use a consultancy or reseller where you are confident their product will meet your specific requirements as discussed above.
  • Look very closely at the reporting and reporting tools the system has. After all it is the reporting that you will use to make decisions and manage your business with. If the reporting is crap you won’t get what you need to improve your business.

What next? The key things in implementing the system you choose. To be continued…

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