Accounting Software Conversion Plan
Many small businesses start with a basic, inexpensive software package that meets their minimum requirements. As your business grows and technology advances, you might find that you need to upgrade your accounting information system so that you can extract the most meaningful data to make sound financial decisions. Four basic approaches exist for system conversions, and you might need to combine more than one method.
Accounting Software Conversion Plan
If you have more than one location, you might choose a site to act as the pilot location. The pilot site converts in whatever manner you choose. Once you are comfortable that the new system is working correctly, you switch all other locations to the new program. If all of your locations have identical needs, this method might be the most cost-effective choice. However, if the needs of the locations differ, you might not be satisfied with the results. For example, your pilot location might need three decimal places in its cost accounting module, but another location might need five. One location might be able to get by with 12 product classes, but another might need a minimum of 20.
For decades, we have successfully transitioned law firms to Tabs3 software by performing custom data conversions. We tailor each conversion because each firm has unique requirements and uses the software differently.
Conversions from older Tabs3 software are done in-house at the Tabs3 software office in Lincoln, NE. Before we can send a price estimate, we need to know a bit more about your firm.*Contact Information
At its core, ERP is an application that automates business processes and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR).
There are two primary approaches to building out an ERP system. The first is to purchase software that can handle each of these core business functions like accounting, sales, inventory and manufacturing from different vendors. These solutions are then integrated with a central database (the ERP). The second is to buy all the modules you need from the ERP vendor and avoid integrations since the applications are already designed to work together.
An ERP is also an asset when it comes to planning and coordination. Employees can see current available inventory and customer orders in detail, then compare supplier purchase orders and forecasted future demand. If necessary, they can make adjustments to head off problems. ERP software improves communication and collaboration as well because workers can check on the status of other departments to guide their own decisions.
Procurement. The procurement module manages purchasing, whether raw materials or finished goods. It can automate requests for quotes and purchase orders and, when linked to demand planning, minimize overbuying and underbuying.
Professional services automation (PSA). Services businesses often utilize a professional services automation (PSA) module to plan and track projects, including the time and resources spent on them. It can simplify client billing and encourage collaboration among staff members working on a project.
For business units, ERP software can automate many error-prone tasks, like account reconciliations, customer billing and order processing, and provide the information teams need to operate more efficiently.
Supply chain: Employees focused on operations, a group that includes purchasing agents, inventory planners, warehouse managers and senior supply chain leaders, rely on the ERP system to ensure a smooth and continuous flow of goods from supplier to customer. They count on accurate, detailed information provided by the system to optimize inventory levels, prioritize orders, maximize on-time shipments, avoid supply chain disruptions and identify inefficient or manual processes.
5. Regulatory compliance & data security. Financial reporting standards and governmental and industry-specific data security regulations change frequently, and an ERP can help your company stay safe and compliant. An ERP provides an audit trail by tracking the lifecycle of each transaction, including adherence to required approval workflows. Businesses may also reduce the chance of errors and related compliance snafus with automation. ERP software provides financial reports that comply with standards and regulations, and SaaS applications are well-equipped to help companies with PCI-DSS compliance.
4. Complexity. An ERP system is loaded with features, and that can be daunting to your workforce. But the software available today is far easier to use than legacy systems because vendors have focused on improving the user experience. Additionally, employees need access to only the modules and dashboards required for their jobs, which can make it more approachable. Thorough training should temper concerns about complexity.
So you know why ERP software is so critical to companies and the key benefits it provides them. But what is it that makes an ERP system an ERP system and distinguishes it from other types of business software? There are a few key features critical to realizing the full value of ERP, including:
4. Automation. Another basic feature of ERP software is the ability to automate repetitive tasks like payroll, invoicing, order processing and reporting. This reduces manual, and sometimes duplicative, data entry, saving time and minimizing errors. Automation frees up your staff to focus on value-added work that takes advantage of their special knowledge and skills.
On-premises ERP: With an on-premises system, the business runs the software on servers it owns and is responsible for security, maintenance, upgrades and other fixes. Upkeep usually requires in-house IT staffers with the required expertise. For many years, on-premises ERP was the only option, but the popularity of this deployment model has declined rapidly in recent years, and market-watcher IDC predicts continued declines (see chart, below).
With a hosted cloud solution, a company purchases a license but runs it on remote servers managed by a third party. The servers and other hardware is often rented from the hosting company. Your data is stored in a private cloud as a separate instance of the ERP used by just one company. Your infrastructure is not shared with other organizations, which is why this is sometimes called single-tenant. This setup can give the client greater control over the software and allow for more customizations, but it also creates more work for the business. Think of it as a middle ground between on-premises and true cloud software.
A true cloud deployment allows companies to pay a fee in exchange for access to servers and software that they do not have to manage. SaaS ERP solutions are a popular version of a true cloud solution, as the vendor handles everything on the back end including patches and upgrades. True cloud is also known as multi-tenant because multiple businesses use the same software instance and hardware. This reduces the need for an in-house IT team and ensures that the company always has the most up-to-date, secure version of the software.
Because many midsize organizations lack large IT teams, cloud ERP software is very popular in this segment as well. In addition to lower initial expenses, leading SaaS solutions can be more user-friendly for a company that has limited in-house technical expertise. However, midsize businesses that require numerous customizations or must follow regulatory policies that bar them from storing information in the cloud may opt for on-premises deployments or a hybrid approach. This group is more likely to have the financial and human capital to support this model than small businesses.
Enterprise ERP: Enterprises should opt for software that can support all components of their businesses, which could quickly thin the list of contenders. Corporations require systems that can capture, process and interpret a vast amount of data and handle the demands of many business units.
Most ERP software is built around established best practices. The software provider designs workflows and functionality based on its experience working with hundreds or thousands of customers and encourages as much conformity as possible, though there is often flexibility to adjust processes.
Adhering to industry-standard best practices has major business advantages. Companies often find that they improve and modernize their processes, and in turn maximize operational efficiency and avoid falling behind competitors. Observing best practices also helps companies comply with key financial standards. Leading ERP vendors offer vertical-specific versions of their software that incorporate business practices that are best for each sector.
1. Discovery and planning. To start, pull together a cross-functional team to determine what, exactly, the company needs from an ERP system. This team should identify inefficient processes and other roadblocks to business growth.
Second, if the existing system is a keeper, is there a connector available from the ERP vendor, the existing system vendor or a third party to get data flowing between the ERP and your existing system? And if so, how good is it? Data migration is complex. These connectors can do a decent job of integrating systems from different vendors, but quality and commitment to updates can vary. Remember: Upgrades to either the ERP or the standalone system can break connectors or require rework. In the worst case, the lack of a new connector could derail upgrade plans completely. 041b061a72