You are part of a project management team evaluating accounting software package

Question

• You are part of a project management team evaluating accounting software packages that could be used by S&S (i.e., the case company referenced in Chapters 1 through 4), which would incorporate its four basic transaction cycles. Suggest five factors that the team should consider when selecting the package. Rank the factors in order of importance, and then justify your ranking.
• From the e-Activity, evaluate two different software packages and propose how you would promote one package over the other to the management committee. Provide specific examples to support your response.

• You are part of a project management team evaluating accounting software packages that could be used by S&S (i.e., the case company referenced in Chapters 1 through 4), which would incorporate its four basic transaction cycles. Suggest five factors that the team should consider when selecting the package. Rank the factors in order of importance, and then justify your ranking.
• From the e-Activity, evaluate two different software packages and propose how you would promote one package over the other to the management committee. Provide specific examples to support your response.

Explanation / Answer

Part 1)

The 5 important factors that should be considered while taking a decision on the accounting software package are given below:

1) Suitability - The most important factor that should be considered is the suitability of the software to the accounting needs of the organization. For instance, the accounting software should be capable to handle large number of transactions taking place on a daily basis in a big size organization.

2) Efficiency - It is important to analyze that how the new accounting software is going to add value to the current accounting system. Further, an understanding of how fast the transactions will get processed and what kind of savings it will provide should be obtained in advance.

3) Price - The cost of the accounting software should be within the approved budget. An expensive software may affect the funds flow position of the company even though it may improve the efficiency of various accounting processes. A cost benefit analysis should be performed before taking a final decision on the acquisition of software.

4) Training - Another important factor is the training of employees on the features and usage of new accounting software. Issues such as how difficult (complexity) will it be for the employees to understand the new accounting system, how much time will it take before employees start working on the new system, etc. should be considered.

5) After-Sale Service - The nature of after-sale services such as maintenance, updates etc. of accounting software that will be provided by the organization from which the software will be purchased is another essential factor to be taken into consideration. It is important because there will be system issues/downturns once the software has been implemented in the organization and the internal IT staff may require assistance from the software vendor to resolve such issues.

The justification of ranking of various factors has already been highlighted in the explanation provided along with each factor.

________

The company can select any one of the below mentioned 2 accounting packages:

1) Sage

2) QuickBooks

One package can be promoted over the other by explaining and comparing the features of the 2 software accounting systems while keeping in view the needs of the organization. For Instance, Quickbooks may appear to be more suitable for an organization where the management is not very familar with the accounting procedures and practices.

Also, the features that are relevant to the organization's accounting needs such as multi-users, in-built taxation, invoice creation, mailing system, report- generation, etc. can be highlighed to the management.

_________

Notes:

The answer is subjective as no information on the structure of S&S has been provided in the question.

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