So to save you lots of pain we’ve put together a checklist of 6 key steps that’ll give you a successful accounting system install or upgrade.

But before we get to our 6 simple ‘pain free’ steps let’s have a look at why people choose the accounting package they do. One of the big accounting companies surveyed small and medium businesses buying their first accounting package.
Here’s the top 10 criteria these businesses used to buy their first package:

1 – Price of the Package
2 – Ease of Implementation
3 – Ease of Use
4 – Package’s ‘fit’ to the business
5 – Functionality of Package
6 – The Package worked with existing hardware
7 – Scalability of the Package
8 – Level of support provided by the Reseller
9 – Quality of Documentation
10 – Developers track record

And all these points make perfect sense. No one wants to get ripped off, no one wants a package they can’t get running and everyone wants a package that’s easy to use.
Now have a look at what the key criteria were for businesses buying their secondaccounting package:

1 – Level of support provided by the Reseller
2 – Developers track record
3 – Package’s ‘fit’ to the business
4 – Scalability of the Package
5 – Price of the Package
6 – Quality of Documentation
7 – Functionality of Package
8 – Ease of Use
9 – Ease of Implementation
10 – The Package worked with existing hardware

You would hope these businesses learnt something from their first accounting package installation and they were a lot smarter the second time around. So if they were a lot smarter the second time around, let’s summarize the key differences and see what we learn:

So for the second time around we’re seeing most businesses have learnt they can’t go it alone and they value the support provided by a professional partner.

Our experience over the years shows the same trends. First time around people are after a cheap package they can ‘learn as they go’… But the second time around they know what they want and they know the sort of company they want to deal with.

Anyway, let’s now look at the 6 steps we walk our clients through to get a stress-free, on-time and as-agreed accounting package install.

Step 1 – Write Down What You Need and Want

The days of using an accounting package simply for book keeping are long gone. The world is a much smaller place and unless your business has got a rock solid monopoly in place, you’re now competing with every other business in your marketplace every minute of the day.

Management is crying out for more information about customers, stock, cash, etc.
In this post GFC world if you’re not keeping a daily watch on your accounts receivables then you’re just asking to lose money – does your accounting system list, rate and trend all your receivables?

In our litigious society can your accounting system track batch numbers of each product and which customer they went to?

And the list goes on.

There’s gold in your customer data and if you’re not using it then it won’t be long before one of your competitors is.

So start by listing what you absolutely must have and what you’d just like to have.

But if you don’t know exactly what you want then you’re not alone as we’ve found not many people do. In our competitive business world most of us don’t have the luxury of time to map out our detailed wish list.

We at Logon draw on our 20+ years of experience and work with our customers to define and agree the real-world needs and wants. And we can suggest a few neat money saving things most people don’t even think of… On to step 2.

Step 2 – What are we doing, when are we doing it, who’s doing it and how much will it cost?

Once we have a rough understanding of what you want, a simple project proposal document helps you see and understand exactly what will happen during the installation or upgrade process. It’s just another thing we do to make sure you’re happy with the end result. The key points this covers are:

What are we doing – This is your needs and wants or what is more accurately called the requirements list. Before Logon works on any project, we agree and sign off the requirements so we both know what we’re doing and there are no surprises at the end.

When are we doing it – A major upgrade over end of financial year or heading into your busy season will not end well. I’m sure it’s tempting to look at a ‘big bang’ approach and cut-over for the end of year period, but experience shows this causes more problems than a staged and well planned implementation.
And, a full system implementation may take 2-4 months so it’s not as simple as the glossy brochures and slick salespeople promise us.

Who’s doing it – It’s all good and fine for Logon to come into your business and install your new system. But you have to own, understand and use your new system. We’ve found this works best when one person from your business is the single point of contact and;

• Has the time to work with us – If the key person you assign is already snowed under with day to day work, how can they pay attention to the new system coming in?
• Has the authority to make decisions – Having to stop work and run back to a ‘stuck in meetings’ Financial Controller for every minor configuration decision will blow out costs and delay the project.

All the smooth, on time and on budget installations we’ve worked on have used a single point of contact person with the time and authority to fix ‘things’ as they came up.

How much will it cost – Remember the cost of the software is just one part of the installation. Implementation, migration, modification, additional reports and training costs will easily double or triple the base software cost.
And a new server? Just because you’ve got a super quick desktop machine laying around or your son says there’s a wicked fast game machine that makes a mean server doesn’t mean it’ll cut it as an accounting server. There is a reason we insist on using only the right hardware.

Logon gives you a quote at the start of the project with pre-agreed payment milestones. And any changes you request during the installation are quoted and signed off so there are no surprises to the project budget.

3 – Teaming with the Right Reseller

As we saw at the start of this article, the people who had done it all before agreed the right reseller, or more specifically the right level of support from the reseller was their number 1 criteria for going with another accounting system.

Well, Logon has been around for 20+ years and we all know the stats on small businesses in Australia.

53% are road kill in the first 3 years.
85% bite the dust in the first 5 years.

And a whopping 90% disappear off the face of the earth by year 10.

So at 20+ years going strong with a full list of happy customers, Logon is a true Australian success story.
We provide consulting, installation, configuration and training services to make your system fly and frankly, if we weren’t doing something right then we wouldn’t be around after 20+ years.

4 – Refine the Project Proposal

We at Logon can’t recall anyone ever going with the first version of the project proposal.
After you’ve had time to look at it, think about it and talk to other people in your business…. Well, things will change.
People will start asking about things such as remote access, multi-currency functions and exactly what reports they can get.
Logon can do additional product demos, or even proof of concepts to answer all your questions.
This is the time for everyone in your business to be 100% happy with the proposal.

That is everyone from the book keeper to the CFO and business owner. If you’re not happy with the proposal at this stage there’s no way you’ll be happy with the end result.
It will be frustrating to go through several reviews and updates on the proposal. And that’s fine. Everyone’s keen to get going and have the new system in and humming.
But we’ve found it’s cheaper, less stressful and far quicker to get the proposal 100% right than it is to make changes once we’ve started work.

5 – Agree and Do the Implementation

Logon’s implementation methodology follows a few keys steps. We’ve used it and proven it hundreds of times and we’ve found these key steps work.

Define the Scope and Plan (what, when, who, how much)
Here we’ll formally agree what was documented in the proposal. The needs and wants are covered, the proposal’s been refined and you’ve have the system demonstrated.
This step is to formally sign off that proposal.

Brief the Management
We at Logon like to meet and present briefly to your management team. This is just a quick overview of who we are and what we’ll be doing.
There’s nothing more embarrassing to Logon than having the ‘big boss’ ask “Who are these people wondering around our offices?”
And there’s nothing more embarrassing to you than having the ‘big boss’ ask “What new system – I didn’t know this!”

Review the Design
Check all the cabling, workstations, operating systems, other applications, printers, size of data files, security setup, etc. It’s about triple checking the details to make this a successful implementation and Logon goes through all of this.

Check and assess the risks of the implementation
It may be as simple as identifying when key people are on leave or it may be as obvious as not starting the week before your major stock take cycle.
Logon has seen installations grind to a halt just because no one had a look around at the ‘big picture’ in the business and we are here to make sure it doesn’t happen to you.

Map out the customizations and additional reports you’ll need
Logon now lists all the customizations and reports we’ve agreed to develop. This may be a simple step or it may take many hours.

Installation and conversion is the next step
We find when we’ve done the planning and leg work the installation time is anti-climatic. We know the network, hardware, 3rd party applications and printers so things roll along on plan, on time, on budget and stress free.

The Test Run
This is when we find out how close we got it. At this stage we test the setup, converted data, reports, printing and any other new systems. Once Logon and you are happy that all this works we’re ready to go live.
But first, we’ve found one more thing makes the difference between your staff having elevated stress levels and smooth sailing. And that is…

Training
No matter how good your people, no matter how smart your people and no matter how easy the system – the benefits of the right training for your people are jaw droppingly stunning.
The key word here is the right training. It most definitely is not a case of one size fits all.
As we go through our consulting and proposal stage, Logon will identify your key people and tailor training for your people.
Please, please do not skimp on the training as this one single thing makes or breaks how your new accounting system will work in your business.

Just think about it.

You can have the worlds fastest race car but a learner driver behind the wheel will give you a slow car and probably a damaged car.
The best kitchen in the world with the finest stoves and pots are pretty useless in the hands of someone just learning to cook.

Finally we’re ready to go live
We’ve done the hard work, it’s been what seems like a fair time coming and we’re both happy the system is up and running and working and we’re ready to go.
It’d be rare that we don’t find something needing attention on the day. But as long as you know to expect something, as long as your people are trained and as long as we have your support plans and agreements in place – well that something becomes just another working day and not a reason to panic.
Which leads us to the last step…

6 – Support

Support is a like your health insurance and annual physical.
Some people smoke like a chimney, drink like a fish and never have a sick day in their lives. However, they are very, very few and far in between.

Most of us visit the dentist, update to new glasses and get sick. And then we’re glad we’ve got our health insurance in place.

Support is like super health insurance for your new system.

It gives you access to upgrades and patches, like new accounting laws when the government releases them.

And a maintenance plan means you’ve got access to Logons specialists when you have strike a problem. We are here to fix your problems and get you back to doing your business as soon as possible.

And a maintenance plan means you get a lower charge out rate than for ad-hoc phone calls.

Summary

A new accounting system can either be the most stressful thing you’ll do in your business or the stress free key to unlocking the hidden gold in your customer list.
We hope this summary helps you see that with a little bit of planning – and the right reseller partner with decades of experience – you can see huge business results just ready to be unleashed.

So call us now and start your change.

1. Have a Clear Policy on Payment Terms

Ensure that your payment terms are clearly set out on all invoices. If you provide services, make sure a significant deposit is secured before beginning any work. If you provide goods, avoid shipping or providing the goods without payment as much as is acceptable for your industry.

2. Set Up a Firm Credit Policy

If you need to provide services or goods on credit – and most businesses will need to provide credit for at least some of their goods and services — you should set up a clear credit policy. A good credit policy will include specific steps for collecting overdue payments. In setting up a credit policy, you should be aiming to obtain payment without alienating or losing customers.

Provide the goods and services with an invoice that set out the terms and conditions for payment, and penalties for late payment. Be comprehensive; also include procedures that will be followed in the case of overdue payments. Bring your customer’s attention to these credit terms. Where appropriate, use credit ratings to assess customers before you grant credit. You should then monitor credit accounts on a regular basis.

3. Follow Up Regularly

As part of your credit policy, you should set down time frames for following up. Where credit accounts have not been paid by the due date or invoices are overdue, follow up immediately. Schedule periodic reminders at 15, 30, 45, and 60 days with your customer relationship management or operations software Be courteous but diplomatic when following up and speak directly to the management or owners.

Call them after sending out the reminder notice and always try to have them agree to payment. If necessary, insist on visiting their premises for a chat or offer to pick up payment yourself.

4. Send Invoices Quickly

If you send invoices out on time, it creates a perception of urgency to the customers. If your invoices are late, it tells the customer that you are lax about timelines and will tolerate late payments.

5. Be Cautious About Large Orders

If a new customer is making large orders, be doubly aware and do ensure that they are able to make payment by conducting a credit check.

6. Monitor Your Accounts for Customer History

Stay alert to problem customers by monitoring customer history. You may need to draw a line when it comes to consistently late paying customers who continue to make orders while paying very late. Cut off supplies or refuse service, or make an exception and refuse credit by demanding upfront payment for this group of customers.

7. Know When to Escalate Matters. Go over all the relevant details in relation to the customer’s account and use your judgment to know when it is appropriate to take the following steps:
   • Sending letters warning of legal action
   • Calling with an ultimatum for legal action
   • Engage debt recovery services

Reproduced from http://www.ccaonline.com.au/blog/strategies-managing-overdue-accounts-late-paying-customers/#more-173

There’s a saying. If you want to be valued, value others more. The easiest, simplest way to show someone they are valued is to thank them.

Feeling appreciated is one of the most important needs that people have. When you share with someone your appreciation and gratitude, they will not forget you. Appreciation will return to you many times.
~Steve Brunkhorst

It is most important to communicate how much one appreciates something someone does… Just say it even if it sounds awkward initially because:

Appreciation can make a day – even change a life. Your willingness to put it into words is all that is necessary. ~ Margaret Cousins

If you want to know why someone goes the extra mile.. try saying Thank You and notice the change. The chances are you will have just increased your emotional bank account with that person…

It seems to be much more common to criticise someone for doing something incorrectly. The next time you are about to say something negative just remember:

A pat on the back is only a few vertebrae removed from a kick in the pants, but is miles ahead in results. ~Ella Wheeler Wilcox