Accounting software Vendors | A guide to Vendor Management
Accounting software is not only cost-saving, it also enhances productivity, and there are many accounting software vendors to choose from. Wit so many previously painstakingly functions now automated, managing business finances has become noticeably easier. But with so many accounting software vendors, which one do you choose?
Here are a few steps you can take to simplify the process:
1. Know what your business needs: -Before you can narrow your selection of accounting software vendors, establish your requirements in terms of business, technicality, usability and cost. Setting up a scorecard against which you can evaluate the vendors across all these requirements smoothens the decision making process.
2. Create a short list of accounting software vendors. Decide if your scope as to whether you want it to be focused locally, regionally, nationally or internationally. This depends on your business needs. For a small business, a list of local vendors will suffice, but a global corporation needing multi-currency and multi-location applications will need to shortlist international accounting software vendors.
3. Send a request for information (RFI) to the accounting software vendors and evaluate the information that is returned against your scorecard. Depending on the size of the project for which accounting software is required, an RFI can be sent to any number between 3-12 vendors.
4. Review returned responses and ask for clarification to vague answers. Delete those who fail compulsory questions and move onto the next one in the list of accounting software vendors.
Vendor Management Questions to ask in the RFI
Important questions to ask include: -
· How long have the accounting software vendors been providing such solutions?
· How often is the product or products updated?
· Are upgrades offered as part of the service agreement or is there an extra cost?
· Does the vendor offer online and phone support?
· How many hours of the day are these forms of technical support available?
If you are looking for industry specific accounting software packages, ensure the vendors are specialists in such an area.
The next step is to consider vendor interviews and to ask for proof-of-concept as part of the interview process. This is the time to gauge how committed the accounting software vendors are to developing a relationship with your business.
The key to successful vendor management is forming a long-term relationship with your accounting software vendors so that your priorities match. In negotiating a deal, remember price is not the only essential element. A willingness on the part of an accounting software vendor to implement a time-pressing application may be a deciding factor in a selection. Over the longer-term, the key is to building a sustainable relationship which brings value to your firm.
The process of selecting the appropriate accounting software vendors can be time-consuming and arduous. Get a headstart on a proper search by getting a free no-obligation consultation with our experts who will be able to give you some tips and guidance on what to look for. Fill the contact form on the right to move forward.
