Since the introduction of the IBM PC, the cost of computers and software has tumbled. Today, it is possible to set up a completely automated small business for under $25,000. Included would be a top of the line computers, laserjet printer, and a comple te selection of office automation and business software. Other possibilities would allow the same business to have a high end accounting system running on a top line computer with a dot matrix printer. Included in this price is a Consultant to help the business select and implement many of the packages selected by the business.
Company executives have a tremendous choice in hardware and software. Hardware choices start with a decision involving platform, class of machine and user topology. Software choices include setting up company wide standards for all types of application s. It is quite possible to have ten to twenty different word processing packages and versions running for twenty different people in a given office.
Most small to mid-sized companies (the parameter of a small or mid-size company can be based either on sales volume, number of employees or both) do not have an MIS department, but rather a PC 'guru'. This 'guru' normally does not have the background to choose, based on solid criteria, the best accounting package or platform in which to run this package on.
Installation, is more than just running the cables, or placing the computers on the appropriate desk. Installation is the process of planning the purchase of a computer system, the needs assessment and specification for hardware and software. It is als o the running of the cables, the configuring of the operating systems and the loading of all software.
Implementation, even in a turn-key computer system is more than booting up the computer. Implementation takes time, planning, project management techniques, a understanding of the specific industry and business practices in general. In addition, a unde rstanding of accounting, distribution and manufacturing. Other areas which should be understood are appropriate office automation and information software, networks and different types of business entities.
Implementation of a Integrated Accounting System should be done by professionals who either a) have a demonstrated knowledge of your particular business, b) have broad based experience in setting up computer systems in many different businesses, and info rm you, the client of the necessary steps involved in an implementation (ie; the need to Plan, the need for a total commitment from both management and workforce, and a good estimate based on experience of the time necessary to complete the project; proj ect management), and have a background in more than just computers (ie; accounting, manufacturing, distribution, management).
A Consultant who happens to be a CPA or a Distribution or Manufacturing Consultant, will not automatically make the ideal implementation specialist. This Implementation specialist needs to understand more than just the General Ledger or Warehouse or Pro duction lines, the Consultant needs to understand Business, Management Information Systems, Marketing and a host of issues that really effect business, not just your individual company.
Implementing an Integrated Accounting System can be a numbing, aggravating, harrowing, expensive and time consuming experience, which never works quite right. By utilizing the correct Consultant, implementation can be informative, rewarding and extremel y productive as you and your company reap the rewards of a MIS system. Time frames, goals, milestones and objectives can be clearly outlined, so that the company can know every day where it stands in the project. To obtain this clarity of thinking, the company should employ a Consultant who understands these functions.
Budgets are important when choosing Consultant, Software and Hardware, but remember, a properly executed implementation plan and the proper software can reduce overhead, trim inventory, decrease the aging of your receivables and ultimately pay for the en tire project from savings, not from cash flow.
Wayne Spivak is with SBA * Consutling, of Bellmore, which specializes in the installation and implementation of Integrated Accounting Systems on both DOS-based and Unix-based systems.