Thursday, May 08, 2008

Blog Site Updates

Over the next few days, we will be performing a few site updates in hopes to get all features working a little better. All articles will be available most of the time during the updates. We apologize for any inconvenience.

Thank you.

Thursday, April 10, 2008

Apathy, but who cares?

It’s easy to point out that most of today’s current financial software is sorely lacking in features and usability.  The frustrating issue is the ongoing apathy by software developers and computer software users who just don’t care.

Why don’t they care?  The reasons are many:  too little time, too little money, someone else’s problem, or a let’s-just-get-by attitude.  With all that’s going on in the world today, the economy, wars, politics, office stress, etc., it’s hard not to blame them.

I am amazed how people will put up with things that don’t work.  They are willing to work around the shortcomings of their office tools, whether it be an accounting system, word processor, spreadsheet, or flaky operating system.  Users have learned the quirks and pit-falls of these applications and have developed work-arounds to the problems.  Even worse, they just put up with these headaches.  They just want to get through the day!

Software developers are the same way.  Why expend the effort when it may not increase their bottom line?  They have the attitude that if no one else is producing better code, why should they?  Since their user base isn’t demanding better software (apathy once again), there is no incentive to produce a better product.  The truth is, there is more demand for better cell phones or MP3 players than better computer applications.

Nobody has any PRIDE anymore!  There is no professionalism, no striving to do better.  Just get through the day, and Friday isn’t too far off! 

Who cares anyway?

Wednesday, March 05, 2008

All Burned Up!

Another type of terrorism has raised its ugly head in the community where I live.  A nut case broke into the property owners’ association administration building, and set fire to the interior of the building totally destroying most of the files.

There was heavy smoke and water damage, even to areas that escaped the fire.  Office staff assumed that the computer equipment and phone system were OK and unwittingly attempted to power these units up!  It was a tragic mistake.

Whether you suffer from flood, fire, tornado, earthquake, etc., use caution when powering up any electronic equipment after such events.  A pre-defined disaster procedure must be followed before any attempts are made to power up.  The internal components need to be inspected, cleaned, dried, and reseated.  External wiring needs to be inspected and tested.  This applies to computers, network devices, telephone switches, and any other electronic devices.  These need careful inspection to minimize damage.  If you power up without these procedures, you can fry it all.

At the property owners’ association the most drastic damage was to the development’s critical building and planning records.  Hard copy reports, plans, and most documentation will be next to impossible to replace.  Before such a tragedy occurs, important documents should either be scanned into digital media and/or stored in a secure, fire resistant facility whenever possible.  Additionally, copies of key documents should be maintained at an off-site location, just like data back-ups of all computer files.

Needless to say, our community was not prepared for this.  A disaster plan should have been in force that included electronic recovery, and it should have been adhered to.  Our community will suffer a costly and time-intensive effort, but an important lesson was learned.  Could something have been done to prevent this from happening?  Maybe, but I doubt it; we’re just too trusting in this country.  You just never know.

I urge you to review your disaster plan regarding electronic equipment and data protection, and modify it to reflect changes in your business.  Don’t forget your hard copy documents that can’t be replaced.  Then, train staff routinely just like you do with any emergency drill.

Don’t let your records get all burned up!

Wednesday, January 30, 2008

R.T.D.M. !

A few questions to ponder:

• Are you aware of any new features in the latest version of your financial software? 

• When a new release of the software is installed, how are you informed of new functions, changes, or what “bugs” were fixed? 

• Have you ever read the developer’s documentation on what is new and different about this new release? 

• Does your software provider even offer such a document?

If you are the controller or manager of a financial department, you should know the answers to the above questions!  Even if you use a consulting firm or a Value Added Reseller (VAR), this information should be available to you.  If not, you should raise Havoc!  Without this information, how can you effectively use the software?  Once you have the information, train your staff.  I do mean TRAIN your staff, just don’t throw a piece a paper on their desk.

If you are an accounting clerk, and if you don’t receive either documentation and/or special training covering new features or revised procedures in the use of the software, talk to your manager.  If you receive only documentation, study it very thoroughly.  If you have any questions make sure you get clarification!

There are some software developers that don’t provide hard copy documentation on new releases and rely on their VAR’s to bring their clients up to date.  This is usually not very effective.  Thankfully, there are developers out there that do offer new release documentation and even training classes covering the features of the new release. 

The bottom line?  R.T.D.M. (read the dang manual) ! 

Thursday, January 24, 2008

Dummy Saves the Day!

Software is constantly changing.  Why?  There are 3 main reasons:

1. Marketing and management want new software and/or enhancements to existing software to help increase sales.

2. Constant demand for new features from the users of the software.

3. New releases in the Operating System may require modifications to software.

Most experienced developers try to make their software bug free.  But, it’s not uncommon for them to “break” working code with these enhancements.  This can cause error conditions, alter results, or change logic.  Can’t they test every piece of code?  Not realistically, especially in the timeframe in which they have to work.  How many times have you, yourself, written a document, spellchecked it, proof read it, even had someone else read it, and it still has errors in it?  You can’t always catch every mistake.

I’m urging you to take an important step before you go “Live.” When you acquire updates to software, before you go live, test it with your company’s data. Your data may create challenges that the developer never, ever, would have thought of.  Every company, no matter how big or small, has quirks that no other company has. 

I know you claim that you test, but I mean REALLY test it, right down to the most elementary item.  It makes sense to create a dummy company on your system, and include your company’s “quirks” to challenge the new software.  Make sure you document what the expected results should be, so you can compare results during your testing.  Be sure to include quarterly and annual procedures and reporting.

Regardless, always test each and every update.  I know this takes time, but it will be less time than the time required to recover from a serious error in the software.  Don’t be the dummy!  Let your dummy save the day!

Have fun!

Thursday, January 10, 2008

Are You Really Prepared?

After surviving the “storm of the century” this past week in California I observed how ill-prepared the world is (computer-wise) when a disaster hits.  It’s not only a matter of the lack of electricity, but the possible damage or total destruction of your facilities.  Damage from flooding, snow, mudslides, and hurricane-strength winds can change your world in an instant.

Even though you religiously perform backups every night (you do, don’t you?) they won’t help if your computer system is damaged or destroyed.  Do you have another physical site that can offer even limited services?  Do you have a hardware vendor that can supply overnight replacement?  And, if so, do you have a facility in which can use the replacement equipment?  Probably, the answer to the above questions is “No!”

Do you have a manual operations plan for when your computer system is not available?  Has the plan ever been tested?  Do you have recent hard copies of work orders, inventory levels, customer and vendor information, etc.?  Is this information available for emergency access and quick removal?

If you’re on your own phone system, do you have at least one provider-powered or over phone devices that don’t rely on electrical power?  If you have any other equipment that requires power, do you have manual powered alternatives?

Is your UPS powerful enough to withstand multiple hits from brown outs and total power outages?  How old is it?  Eventually their ability to protect your system diminishes to a point where it is no longer protecting your equipment. 

If the answer to any of the above is basically “No,” you need to ask yourself how long can your business survive without serving your customers?  In watching the effects of the recent storms, I wonder if some of our local businesses will weather the storm, or will their customers find alternate providers for now and maybe for the future.

Sunday, January 06, 2008

Beware of the Giant in the Mouse Disguise

Beware of a Very Large Financial System (VLFS) software provider that has entered the Medium-Sized Financial System market (MSFS).  At least, that’s what their current advertising claims.  What do they mean by medium-sized business? Their web site and media advertising is very vague and not informative.  It is next to impossible to research their information without contacting a sales representative to breathe down your neck. Contacting their sales staff is like throwing raw meat into a tank of Piranhas.  Not for the weak of heart!

I don’t hold much hope that this MSFS will be very good.  Heaven already knows their VLFS is very expensive and difficult to install.  It’s not that it doesn’t work, but you’d better have a lot of spare cash lying around.  I don’t believe they have ever come in on budget on any install.  Also, plan on some live-in consultants for quite awhile.  It may be cheaper to buy them a house to live in rather than pay for hotel bills.  And, the hardware requirements are notorious for being undersized, so be ready to purchase forced upgrades.

So why am I ranting about this MSFS without even trying it?  Because, unless they totally re-engineered their offering, and only downsized (?) their product, you will only get a smaller version of a larger problem.  It is extremely rare (like never) that a software developer will take the time and the money to totally re-engineer their software to gain the advantage of new ideas and new technology!

Look for a software company that has a proven design that takes advantage of current technology and is designed for your business.

Once again, it’s “Buyer Beware!” Good Luck!

Monday, November 19, 2007

Thanks to the Special People!

It’s the season to be thankful for many things, not the least of which are those who work so hard in your office.  I’m talking about the A/P clerks, the Payroll department, those in A/R, and Human Resources that are still working while the office parties are in full swing.  Let’s not forget the I.T. staff, as well.  They’re still manning the support lines.  Holidays may be the only time that I.T. can shut down systems, so they can install new hardware and software.

As usual, management overlooks these people.  After all, they’re not at the company party and don’t have the opportunity to run around with a lampshade on their head to be noticed.  If they are missed, some middle executive will make a snide remark about them being “anti-social” or “not a team player.” This pinhead doesn’t realize that the Payroll clerk is generating this jerk’s bonus check, and the I.T. department is installing the new PC that he/she has demanded.

To all those that go unnoticed at this time of year – A SINCERE THANKS!

Monday, November 12, 2007

How Did We Get So Messed UP?

It’s Simple.  The wrong people could be choosing your new financial system!  I have seen companies using a good financial package that met their needs, and a “New” Manager demands a change in financial systems.  It doesn’t matter that this new system doesn’t work as well as the existing system or doesn’t even come close to meeting the needs of the business.  Mix this with Upper Management that is totally inept in choosing software, and you have a disaster in the making.

The objections of the Controller and the I.T. department are totally ignored.  Logic and knowledge have nothing to do with this new decision.  No research is performed on the doability of the new software; or, if research is performed, findings are totally ignored.

How does this happen?  You start off with a Board of Directors that are all “Yes-Men” who want to hang on to their fat bonuses.  The CEO and/or President, who can’t even spell “G/L,” make the decision based on one or more of the following:

• How cute is the salesperson?  Or, they a best friend?

• How closely is management related to the “New” Manager?

• How good does the “New” Manager looks if he or she has an attitude of “I know what I’m talking about!”

• What “gifts” the proposed software company is offering.

• Their belief that the new software company is a safe bet because they are a big name company.  (How many big companies from 10 years ago are still around?  Besides these big companies buy and sell applications and each other every day.)

• Finally, which way is the wind blowing? 

The resulting situations that can occur from such scenarios are too numerous to cover in this rant, but here are some possibilities to ponder:

• Payroll insurance premium notifications to insurance companies may no longer be generated.

• The same could hold true for 401K’s and other benefits that require communication with outside providers.

• Interfaces to and from time keeping systems could fail.

• Possible loss of ability to have direct deposits or positive pay programs with your bank.

• Incomplete 1099 reporting could occur due to lack of withholding capability.

• May require entire new check designs resulting in a lengthy process with bank approvals before check processing can begin.

• Reports may not provide the information management needs to conduct business without costly custom reporting.

• Possible lack of garnishment capabilities in the payroll system.

• Possible inadequate reporting to federal and state authorities for your type of business.

• The list goes on and on . . .

What are your choices?  Well, you can grin and bear it, and maybe in 2 to 4 years someone will realize the mistake and fire the “New” Manager along with his or her cronies.  Maybe it’s time to polish off the resume and look for another job.  Believe it or not, there are well run companies out there!

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!

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! 

Tuesday, July 31, 2007

What’s Important?

When selecting a financial system today what applications within the system are the most important?  Where is your greatest need?  Where is your maximum exposure?

The goal of all financial systems should be to manage the company’s money and provide the required reporting for governments, banking, and internal management.  Certain applications should provide the tools and safeguards against making mistakes that could expose you to government and civil legal situations.

Accounts Payable needs to provide taxing authorities with the payment information that you made to your vendors.  Accounts Receivable needs to interface to your operational systems (ERP, etc.), as it is basically your “cash register.” Fixed Assets and Customer Management also come into play.  Having said all that, clearly the most important applications are Payroll-Human Resources and General Ledger.

Payroll and H/R are extremely important!  There are more blogs, chatrooms, and bulletin boards devoted to these applications.  Your company may face all kinds of legal and regulatory issues if these systems don’t provide you with the tools that you need! 

• Payroll must be timely and accurate.  The Payroll Department needs to have the ability to formulate any payment, voluntary deduction, or taxation that may occur. 

• H/R needs a close integration with Payroll to manage employee benefits. 

General Ledger is the “collecting pot” where everything financial comes together.  Without flexible, open-ended data collection, statistical information, and a powerful report generator, this application is worthless as a management tool.  Data needs to be stored without Date Restrictions (i.e., “Buckets”)! 

Your company needs to know its true financial status in a timely manner to determine where improvements can be made to make the bottom line better.

If you have any doubts about these applications in your current system, go look for a new one.  The cost of conversion is nothing compared to the cost of failure of one of these systems!  Don’t select a new system unless it addresses these needs!

Saturday, July 07, 2007

Communications, Get Involved!

It’s no wonder why software developers spend most of their time and money trying to attract prospective new clients.  After all, that’s where the money is, so you can’t blame them.  But, how well do they communicate with existing clients?

I’m so tired of developers who make little or no effort to inform their clients about new enhancements to the existing software.  Sometimes they don’t even provide this information to prospective clients (see the Smoke and Mirrors rant)!  These developers are the elitists, and you probably already know who they are.  They figure the client will discover these enhancements at the next major release, and that’s good enough!

Having said that, it’s not always the developer’s fault that their clients are not up to speed on the latest improvements and modifications to the software.  Often the client doesn’t put forth any effort to become informed.  The client’s reply to this accusation is that they don’t have the time to read all this information that inundates their e-mail and/or the Postal Service.  If they won’t read their mail, they for sure aren’t going to take a phone call from their sales rep.  Of course, when they do find out that the developer has a new feature (one that the client has needed desperately for 6 months), the client is going to be upset with the developer for not letting him know sooner!

What’s answer?  I don’t have the answer.  Apathy is hard to overcome.  Probably the best solution (as a client) is to belong to the software user group and get involved.  Participate at the conventions and establish contacts within the group.  If your developer does provide software update information, make sure you read and understand it.  It may be exactly what you need. 

A regular dialog with your software rep and a concerted effort to stay abreast the latest enhancements will keep you on the leading edge.  And, when the developer doesn’t furnish you with what you need, communicate – often and loud!

Thursday, June 28, 2007

Smoke and Mirrors

Trying to make an intelligent choice when selecting a new financial package can be a very exasperating experience!  Trade magazines of the past were useful, but today they’re more interested in covering the latest PC gadgets.  Now everyone uses the Internet for research, and that can lead to real frustration.

I like to do my research without outside interference.  This means I don’t want a salesperson breathing down my neck and calling me everyday.  Almost all web sites require you to provide complete information about yourself and your company before you can even peek at their product information.  I don’t mind sharing that information if it looks like they have a good product that might do what I need, but how would I know that without some preliminary information? I resent these demographic data collections and know at least one site that even requires a deposit (via credit card) before releasing product information!

Then, after you give them everything but the names of your first-born, they usually will do one of two things: send you a CD with a Power Point presentation (accompanied by annoying phone calls from a staff salesperson), or turn you over to one of their Certified Resellers.  Again, you’ll have a salesperson calling.  The Power Point presentation won’t answer your questions and neither can the salesperson, whose prior experience was selling used cars.

They don’t even know your company’s needs. So, now you have these idiots calling you everyday with such statements as, “We have a 83% fit for your company;” and, within the same breath ask, “What is it that your company does?” And you still have no idea if their software even begins to meet your needs!

Too bad they don’t have the “you know what” to provide REAL information without obligation.  What are they hiding?

Friday, May 18, 2007

USER POWER!

I’ve been very critical of major accounting software developers, but my entire diatribe has neglected a key element of success: the USERS of this software.  That’s right, it’s now time to pick on YOU!

It’s easy to bitch and moan about the software, but what have you done to make a difference?  Do you belong to the software developer’s user group?  Do you participate?  Do you go to the conference?  Do you just sit there?  Is it your primary goal to see how many of their logo items you can walk away with?

Get up off your tush and raise a stink!  Don’t put up with days of their endless drivel on how great their software is, and what new features they have to SELL.  Tell them what’s wrong with their software, and why you think so.  Be prepared to back up your rants with facts.  Don’t let them divert attention away from your issue.  Be respectful and professional, but get your point across. 

Too many user groups today are fancy sales promotions and NOTHING else.  Don’t let this happen.  Other users probably share your intuitive ideas.  Contact them before the conference, and agree to present a united front.  Developers may resist and try to ignore the interruption, but be persistent.  It’s the only way to make things better.  Eventually, the developer will start to listen.  They’ll have to, or they will lose customers.  Changes will be made, the software will get better, and the relationship between developers and users will form a stronger partnership.

Users of the World UNITE!