How Did We Get So Messed UP?
It’s Simple. The wrong people could be choosing your new financial system!
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!