Wednesday, September 26, 2007

Power to the People!

I have recently seen with my own eyes an example of the power that users have over developers.  My wife has a business that relies on a rather expensive computer-guided machine.  The software that controls this machine works well, but is complex and has limitations.  Users of this product are a vocal group with well-organized, active user-group and on-line forums.  They’re not afraid to share their opinions with the developer and have made numerous suggestions of what was needed to improve the product and bring it to a state-of-the-art design.

The developer listened, making users part of the design team.  As a result new software, not a minor upgrade or bug fix, but an entirely new version has been released, and it’s at zero cost to the users!  Why did the developer do this?  They wanted to hold on to existing customers and increase their market share.  They’re smart, they are a leader in this industry, and their customers are loyal and appreciative of this innovative approach. 

What does this have to do with Accounting Software?  Everything!  Developers can’t make money if they lose their customers to other accounting software providers.  Keeping competitors away can only be accomplished if you have a better product.  Sleazy sales gimmicks and creative pricing may work for the short term, but eventually customers become aware of the deficiencies and will find another provider of software they need and demand.

Users have the power to force developers to update software if they present their demands in a professional, unified, and organized manner.  If the developer doesn’t respond, find a better solution.  There must good accounting software out there.  Do your research!

Sunday, September 16, 2007

Drill Down!

Ever been to a financial presentation before the Board, and watch the Controller trying to substantiate dollars in a particular account?  I have, many times, and it “tain’t funny McGee.” There he is, frantically thumbing through reams of paper looking for that lost posting.  Sounds of stuttering and a lot of sweating occur at moments like this. 

There is a better way, providing you have the right software!  A good G/L system needs to have the ability to “drill down” into an account and present to the viewer all postings to that account.  Sadly, there are only a few G/L systems that can do this, and even some of those are hampered by lack of historical detail data because they accumulate detail transactions into summary accounts every time a reporting period is closed.

Imagine how nice it would be having this type of software connected to a projection system on the Controller’s laptop.  When a Board member asks the question, “Why is the Board’s entertainment account 50% over budget?” The Controller can instantly display the fact that the Board consumed 3 cases of Scotch at the last quarterly meeting!  It may not have been the answer that they expected, but at least this time the Controller would not be the one stuttering and sweating!

This is but one example, albeit rather whimsical, on how this type of software can be used.  Think of all the uses it would have in everyday situations.  Rather than have to dig through all of the posting reports (if you can even find them) to determine what happened to an account, just drill down to the detail. 

Drill down is a fantastic tool, and every system should have this ability.  Are you listening, developers?

Tuesday, September 11, 2007

Risky Business!

I have been reading some very interesting accounting forum articles lately, and I am shocked by some of the questions and even more so by some of the answers posted on these forums.

It appears that many companies (even some governmental and non-profit agencies) are operating without written polices or procedures!  There seems to be no resource for a clerk to go to for answers on how to do his/her job; nothing on how things should be posted, how something or someone is to be paid, or how an employee’s benefit is to be applied.  Every decision is a throw of the dice!

When I first started in I.T. I was assigned the task of developing a financial system for my company (back when we wrote our own systems using clay tablets).  I was given the firm’s Polices and Procedures manual (P&P).  It covered everything from Accounts Payable to Payroll.  If you had a question, you went to the P&P manual.  There was rarely a question that it did not cover.  If the answer wasn’t in the manual a meeting of the Board was held, and a new entry was added.  We did not operate without written P&P’s! 

Today, companies have a risky, shoot-from-the-hip mentality with a “get’er done” attitude.  Maybe that’s why there are so many lawsuits filed by employees, so many recalls on products, and why so many businesses FAIL!  That first company I wrote the financial system for is still in business and has grown to be a leader in its field. 

I can’t impress upon you enough how important it is that you prepare a thorough and clear Policy & Procedures manual, which includes all accounting “rules” and how to apply them.  The very life of your company may depend on it!