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Software: A Contractor's Toy?
BY FRED ODE
Have you ever bought a new gadget that
you couldn’t wait to use? Maybe it’s a new
titanium driver, a fancy MP3 player, or
even the latest and greatest power drill.
For those who love new products like
these, there’s a thrill in the moment of
tearing off the packaging and feeling the
shiny novelty of a new toy.
But cold reality finds that one needs
to read the manual to really know how to
use the new toy, and life isn’t immediately
easier.
Computer software is a lot like these
new toys. After struggling through the
installation, trying to learn how to use the
product, and finding it doesn’t immediately
do exactly what was expected, it’s
tempting to relegate the software to the
dark recesses of the hard drive and give
up.
Laurie Milewski, office manager of
S&S Electric in Schenectady, N.Y., lived
through this vicious cycle three times
before she finally found a construction-specific
accounting software that wouldn’t
leave her frustrated and disappointed.
Like many new companies, S&S
Electric began by doing its bookkeeping
manually and incorporating a few spreadsheet
programs to meet specific reporting
needs. “As we grew,” Milewski says, “it was
obvious that we just couldn’t continue
using these methods.”
The company’s first accounting software
purchase was a generic accounting
system, and as with a shiny new toy, the
possibilities seemed endless.What a thrill
to move to the automated world of computerized
bookkeeping.
The thrill was gone all too soon, however,
when it became clear the system just couldn’t
handle the demands of a busy construction
company.The obvious upgrade was to a construction-specific system. The choice was a
well-known package that promised to meet
the company’s specialized needs and provide
a lasting relationship. Imagine Milewski’s
frustration when, again, the system failed to
deliver.“What we didn’t see coming were the
broken promises from that company’s representation.
Their program was hard to work
with, technical support was a nightmare and
it still could not get us the reporting we wanted—
a huge disappointment.”
But it doesn’t have to be painful and
disappointing. There are many things a
contractor can do to ensure the transition
is successful.
SELECT THE RIGHT PACKAGE
People need to do their homework and
select the best software for their needs.
The part many people miss, however, is
looking not just at the software but at the
process that will be used to install, implement
and train staff on that software.
Be realistic about the time and resources
available to make the transition. Be sure that
the provider can accommodate the company’s
situation.For example, if it offers only 16
hours of online training, can the contractor
and its employees realistically learn all they
need to know in that timeframe and through
that single medium? How difficult will it be
to schedule implementation time on the contractor’s
own schedule—not the provider’s?
In short, make sure the provider has experience
transitioning someone from a basic
accounting package and knows the pitfalls.
PREPARE FOR THE TRANSITION
Before new software arrives, begin preparing
for the transition. Switching accounting
packages is always challenging, but it is even
more so when moving from a generic “bookkeeping”
package to one that offers more
robust and traditional “accounting” features.
This may mean that the staff needs to spend
some time learning basic accounting.
There’s a lot of information online, but an
introductory course at a community college
or a basic accounting textbook may provide
more structured and accessible learning.
Part of this process should also involve
studying the chart of accounts. Many off-the-shelf programs don’t require a lot of
knowledge about the accounts’ set up—or
a structured numbering system. Most
construction-specific packages do.
Contractors will need to get intimate with
this essential part of the system. The more
work done before new software is
installed, the simpler the transition.
GIVE YOURSELF PLENTY OF TIME
Even with advanced preparation, transitioning
from a basic accounting package
to a robust, construction-specific system
will take some time. In the long run, it’s
much better to allot more time than actually
needed—rather than run out of time
and move into panic mode.
While some companies can complete the
transition in as little as two weeks, others
take as long as six months. Contractors may
need to rethink the processes and methodologies
they use for everything from the
chart of accounts and numbering schemes
for employees, vendors and customers to
what kind of information is gathered from
the field. Just making these kinds of decisions
can take some time—actually implementing
them will take even longer.
So, is it worth it? Milewski thinks so.
After her “nightmare” experience transitioning
to the first construction-specific
accounting package the company tried,
they took the plunge and made another
switch. With many lessons and a great deal
of experience under their belts, S&S
Electric was careful to look for a system
with a strong reputation in terms of both
service and support.
Reputable software can offer much
more than a shiny new toy—it’s a tool that
can transform a business and actually
meet its expectations.
Ode is CEO/chairman of Foundation
Software. For more information, call (800)
246-0800 or email fred@foundationsoft.com.
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