A good number of the companies we interact with are looking to replace the accounting software they have outgrown. More often than not, it is QuickBooks or some other entry level software package. Sometimes the most challenging thing for companies to get past is the price tag. This is unfortunate because while price obviously has to be a factor, it should not be the leading selection criteria. Take this study conducted back in 2005 by Deloitte & Touche LLP, referred to here and brought to my attention by my colleague Jason Carter: 1500 executives were asked to rank 10 factors in order of importance to them in selecting accounting software. Of these executives, there were 1st time buyers and then those who had purchased 2 or more times.
For me, the top three results on either side are most telling. As you can see, among the first time buyers, “Price” was the number 1 concern, with “Ease of Implementation” and “Ease of Use” coming in at numbers 2 and 3, respectively. For the executives who had been down this road before, the number 1 factor was “Level of Support From Solution Provider”, with numbers 2 and 3 being Vendor’s Track Record” and “Software’s Ability to Fit the Business”. In fact, for the executives who had done this before, “Price” came in at number 5! And those who were first time buyers? “Level of Support” came in at number 8, and “Vendors Track Record” came in at number 10! This was astounding to me! But I guess this really illustrates the mindset of companies migrating from a solution like QuickBooks - they are used to going it alone, making do with the software they own and paying a couple of hundred dollars for it. I do not believe that support and track record would not be important to a company looking to do work with a new partner.
I can promise you that will not get a midmarket ERP product, like Microsoft Dynamics GP for a couple of hundred dollars, but I can also promise you that you will not have the features and functionality in an entry level solution that you will find in a midmarket ERP package like Microsoft Dynamics GP. What kind of dollar value can you place on the factors that have brought you to the place where you are considering replacing your accounting solution? Only you know the answer to that, just be sure to engage with a software advisor that will listen to that.
So, my final thought is this: why not benefit from the lessons that have been learned by those who come before you and look at all the factors when choosing a replacement accounting / ERP package?
Tags: accounting software selection, erp selection, selection criteria
