Selecting and implementing financial software
There are several basic things to look
out for in choosing this vital need
BY ROBERT B. BRENIS, CGEIT, CISA, MCP, PMP
Whether you are a small contractor, or a member of larger construction company, choosing a financial software for your business is a major decision that needs to be afforded the proper amount of time and thought. In short, you need to be careful about which package that you choose.
One common mistake that companies make is falling prey to the “wow factor” of a software package. In other words, just because a software has a lot of bells and whistles and unnecessary applications that may seem like a great idea now, that does not mean the software will be the best fit for your business in the long run.
Meeting your requirements
Some criteria to consider:
When determining what software a company needs to manage financial data, it depends on your business requirements. Those requirements determine which software applications will best help you manage your data.
Size is another factor to consider. There are applications available for small, medium and large businesses. What works for a mega-corporation may not be applicable for a one person business, and vice versa.
Third, consider the type of business. As a construction business, using financial software designed for a manufacturing business may not be ideal for your needs. Part of your search criteria should be finding a software package that focuses on the construction industry.
As you’ll see throughout this article, selecting software is not something that can be made with a snap decision. It’s a time-consuming process. That’s why it’s crucial to take the time now to define what you need and where you are trying to go with the software one, five or 10 years down the road. You want to choose a software you can use today and grow with in the future. Software like that leads to huge cost savings (not to mention time savings), as opposed to regularly implementing new financial applications, which can become a
costly endeavor.
You also want software that is properly implemented the first time and the first time only. Thus, it is important that you ascertain exactly what you want in a financial software package before you implement it. Doing so will once again save you the two most precious commodities in the business environment: time and money. Not only that, it will make you and your data more secure.
Data security
There are several ways to ensure that your data is secure depending on the software’s application. For example, is it sitting on a server or on a regular PC? Either way, you need to make sure no one can hack into its environment. You also have to make sure that the financial data that helps you generate financial reports is secure. Before you purchase a financial package, you should have a network expert come in to make sure the system is secure.
Even if you’re housing data within the system’s environment (e.g., credit card numbers or other payment information), those numbers have to be encrypted in your database. And, they have to be unreadable so someone within the organization can’t just call up the database software and use the numbers to commit fraud or, worse, take them to another company. You really have to consider both the external and internal security of data when acquiring financial software.
Software trends
One recent trend in many areas of software is ‘cloud’ computing, or “Software as a Service” (SaaS). This allows software applications to be provided as service over the Internet. As technology continues to advance, these applications continue to improve in giving the user a most “desktop-like” experience. Drop, expand, collapse, sort, update–without waiting for browsers to refresh.
Recently, due in part to increased security in SaaS programs and the improved reliability of the Internet service providers, SaaS has gone mainstream. This applies to the construction industry as well, especially with project management software. Because of wireless broadband cards, Internet access can be available at any job site with decent cell phone service. This means job site managers can access these applications anywhere, anytime.
While the SaaS model hasn’t completely taken over the financial software industry just yet, it seems to be on the horizon and something that construction companies need to consider in the future. BXM
Robert B. Brenis is a principal in Skoda Minotti’s Business Applications Consulting Group. Reach him at (440) 449-6800 or rbrenis@skodaminotti.com
