If you’re not happy with your computerized accounting system, it may not be the software you’re using. You can select the best software that money can buy, but if it is not used properly, you are wasting a valuable investment.
Proper implementation is the most critical step in the entire computerization process. In my work as a consultant to the building industry, I have seen numerous ways that companies fail to use their computer systems correctly. Follow these eight tips to avoid computer problems caused by operator error:
Plan ahead. An implementation plan should be developed prior to the delivery of the equipment. It should include a step-by-step listing of the implementation procedures including target dates for completing each task and the responsibilities of each staff member. Spend time up-front developing an implementation plan to help the training and conversion process run smoothly.
Make the necessary time commitment. One builder I know asked his bookkeeper to implement new accounting software. Unbelievably, he told her he expected it to be up and running by the end of the month. Nine months and several thousand dollars in consulting fees later, the package was finally working. It took that long because the bookkeeper was busy all day running the office. She was never given the time to learn the new system.
The builder did not understand that successfully implementing a computer system takes a lot of time. The company president should have made a commitment to provide time and resources for installation, training, and conversion. The plan should have included provisions for possible overtime and temporary help to take over some of the normal daily functions during various stages of implementation.
Check your systems. The No. 1 cause of poor implementation is lack of an effective system for processing information that will be entered into the computer and reviewing information that comes out of the system. When it comes to working with computers it is important to understand the GIGO principle (Garbage In, Garbage Out). A computerized system is only as good as the data that is fed into it.
When developing an implementation plan, spend time reviewing current systems and procedures. This is a perfect time to identify problem areas and develop new policies and procedures to provide accurate data for computerized input.
Include the right people. A custom home builder I work with assigned his company’s chief estimator to spearhead the purchase and implementation of job-cost accounting and estimating software. After the system was installed I was called in to review the plan that the estimator had put together. Unfortunately, neither the estimator nor the company president had any idea as to the requirements of the accounting department and the process of converting from their current accounting system because the bookkeeper and outside CPA were given no input into the conversion process.
This builder should have realized that in order to implement an integrated job-cost accounting system, the bookkeeper, CPA, and entire office staff should have been involved in planning the implementation. Development of the plan should be a group effort with the involvement of all parties who are to be using the system.
Ensure proper backup. Another custom builder I know never implemented regular procedures to back up his system. During an electrical storm the system crashed and the hard disk needed to be replaced. Since the company did not have recent backups of its data or the latest versions of its software, it took hundreds of hours to get the company data back to where it was prior to the system crash.
