Establishment of back-up procedures should be an integral part of implementation and company personnel should back up their program files any time that upgrades are installed.
Learn the system. Often, know-it-all contractors figure that they can teach themselves how to use new software. They don’t think that it is necessary to read the manuals, attend training, or go through the tutorials included with the software.
Documentation provided with most software packages, whether written or online, is an excellent resource for learning the program and answering questions regarding how to perform a given procedure. If contractors spent the time reading the manuals and attending training, the implementation process would be less costly with a lot fewer headaches for them and their vendors.
Make time for training. A builder I work with scheduled on-site training for new job-cost accounting software. Everything was going well until the phones started ringing—all three people who were involved in the training were also responsible for answering the telephones. Throughout the day the training was interrupted by phone calls and requests from the estimator and president.
In order to get the most out of the training process this builder should have brought in temporary personnel to handle the phones on training day. In order for training to be successful, management must make a commitment of time and resources.
Plan for conversion. Don’t forget to establish cutoff dates for entry of opening balances. In developing a schedule for implementing your accounting software you should keep in mind that you probably will not be ready to “go live” with all of your accounting transactions at the same time. Make sure that your subsidiary ledgers (accounts payable, accounts receivable, payroll, and job cost) continue to be in balance with the general ledger when you convert to your new system.
Implementing a new accounting system can increase efficiency, improve productivity, and help you better manage your building company. The road to a successful implementation may be bumpy but with proper planning you will be able to steer clear of the potholes that may lie ahead.
Steve Maltzman, CPA, is president of SMA Consulting in Colton, Calif. Visit him at www.smaconsulting.net.
