How to Select Your Next Accounting/ERP System

Congratulations on taking the important step to upgrade your accounting or ERP system. While this process can be complex, it holds the potential to transform and future-proof your business operations for the next 10–20 years. This guide outlines the key steps for selecting the right system. It focuses on the evaluation and selection process. With proper due diligence, this phase can take anywhere from 3 to 12 months.

1. Identify all stakeholders to be on the implementation team

• Leaders from each department

• Power users

• Change agents

*It is key that people on the implementation team understand day-to-day operation and the desired end results. This may require multiple people from a department to be involved.

2. Identify a strong working project manager. They must understand:

• Accounting

• Compliance

• Business operations (workflows)

• Vendor and contract management

• Data migration

• Stakeholder management

• Change management

• Software development process

• System integrations

• Testing and Quality Assurance

• Project management

*This is the most critical role on the implementation ream. A strong, knowledgeable diplomatic leader is needed. Prior experience has advantages.

3. Develop system requirements

• Understand critical reporting needs from all stakeholders

• Document current processes

• Document ideal future state – redesign current process as needed

• Prioritize system requirements

• Develop regression test plans

4. Develop an initial budget (this should be confidential)

• Estimate software costs

  • Core software

  • ISV (Independent Software Vendors)

  • Development

  • Custom Reporting

• Consulting implementation costs

• Internal costs of the implementation team

• Staff training costs

• Data migration

• Testing

• New infrastructure or hardware

• Ongoing Maintenance

*If costs are high consider a multi-year, phased approach.

5. Research Solutions

• Identify 5-6 solutions to consider

• Choose industry specific solutions and general solutions

• Select low-cost open source to high end expensive solutions

  • This gives you a cross section and what to expect

  • This also provides ideas on things you might not have considered

• Consider what ISV’s will be needed

• Custom development

• Custom Reporting

• How can the solution be deployed (Cloud, on-premises, hybrid)

• Understand how your top 5 system requirements will be accomplished in each solution

6. Research Resellers

• AFTER SELECTING A SOLUTION INTERVIEW 3-4 RESELLERS OF THE SOLUTION

• When you buy software, especially subscription software, it is difficult to change resellers once a contract is signed.

• Be wary of resellers with lots of accolades from the software vendor. It just means they sell a lot of software, not that they implement very well or care about your unique situation.

• How many implementations in your industry have they performed?

• Post go live support

• Get references for both the reseller and the software. Remember to ask about unexpected scope change, or overages which weren’t disclosed upfront. What do they wish they would have known going into the process?

7. Build the proposal

• Identify the stakeholders and implementation team

• Include system requirements in order of priority. Note which items may not be included in the new solution

• Prepare a budget identifying all the items from above. Add a contingency line item. Your contingency amount should be 50% of consulting, development, custom reporting and ISV costs.

• Summarize the solution and vendors vetted. Document of why the solution and reseller were chosen.

• Prepare a preliminary project plan.

  • Major phases include: Onboarding, Building, Testing, Training, Data Migration, Go Live, Post Go Live, Closeout.

  • Consider implemented ISV solutions prior to implementing the ERP solution so they seamlessly connect, and you don’t have multiple implementations running parallel.

  • Leave cushion at various points in implementation to catch up. Holiday weeks are good for this.

• Discuss staff commitment during implementation. Consider hiring temps to increase internal capacity.

Following this process will set you up for a successful Accounting/ERP system implementation.