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ACCOUNTING SOFTWARE Vars’ View: 5 Reasons Accounting Software Installations Fail

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ACCOUNTING SOFTWARE Vars’ View: 5 Reasons Accounting Software Installations Fail 1-1-15_SR_AccountingSoftware_Layout 1 12/18/14 2:04 PM Page 1 NPT SPECIAL REPORT: ACCOUNTING SOFTWARE VARs’ View: 5 Reasons Accounting Software Installations Fail BY TED NEEDLEMAN Mateo, Calif., was just one of the vendors to point out about a month, had things running smoothly. e’ll deal with it when we have to” a primary reason an installation can fail: “The non- The lesson, according to Geilhufe, is to ensure you are eight words that no consult- profit can’t fully articulate what it needs from and have the right people, process, and expectations in ant or value added reseller (VAR) what is important in an accounting system. Executives place. “Include non-finance stakeholders in the ac- of accounting software ever struggle to ask the right questions about what the counting software decision and implementation “W nonprofit requires.” process to ensure that finance isn’t isolated from the wants to hear. But that was exactly the reaction that Lyndy Januszewski, a managing consultant at Sikitch Sometimes, the wrong questions, or no questions rest of your organization. Have one or more senior ex- LLP, a Microsoft Dynamics VAR in Napierville, Ill., kept at all, are a result of the wrong people being involved ecutives act as evangelists for the new accounting sys- hearing from a client. in the specification of implementation process. tem to demonstrate management commitment to the Januszewski’s client, a nonprofit healthcare organi- Joanne “Jo” Schneberger, a professional services con- implementation,” he said. zation with several separate legal entities, was in the sultant for Abila Software in Austin, Texas, noted that “Do establish an executive steering committee, process of implementing Microsoft Dynamics GP so having the right people in the process, and making which meets regularly, and which is in charge of the that the parent organization and its independently- sure that those people are qualified to make the deci- implementation. Do set a correct level of expectations run parts were all on the same page as far as account- sions, is crucial. “In some situations a CFO might go about what the new accounting system will deliver. ing software. out and purchase a new software and run the imple- Do encourage staff to ‘own’ the system and start train- Early on in the specification process, the client mentation themselves, but it fails when they didn’t ing on the system early and continue it long after im- speculated that it would be nice if all of the entities understand all the things that the team members plementation so users are familiar with all aspects of could reside on a single database. Januszewski and needed from the software,” she said. “It is crucial to the functionality,” said Geilhufe. her team quickly realized that there were problems in- have buy-in from employees using the system so they Abila’s Schneberger also warned that a good educa- herent in that approach, especially in preparing the can participate in the customizations to the structure Continued on page 3 end-of-year Form 1099s for the vendors. But the client and trainings.” latched onto the single-database concept, and with bulldog-like perseverance would not let go -- hence PROBLEM NUMBER TWO the eight deadly words. Unrealistic expectations are a second reason soft- There is software designed for just this purpose -- ware installations fail. Also a problem is thinking that to identify the transactions made by separate entities your organization needs more or less than it actually while using a single unifying database. It is, however, does. provided as an add-on available at additional cost “I got a call from the client of another VAR that han- from an independent software provider (ISP). The dles one of the fund accounting products I also sell client just couldn’t see the need to spend the addi- and support,” said Matt Yezukevich, CPA, a consulting tional money. manager at BlumShapiro in Quincy, Mass. “They had As far as installation failures go, this one wasn’t as moved from QuickBooks to this new software because bad as it could be. But addressing the issue “when they QuickBooks proved too limiting. But they also went had to” ended up being at the end of the year -- the from about 1,000 accounts in their QuickBooks Chart busiest possible time period to have to solve the prob- of Accounts to a system that can easily handle 20,000 lem. Sorting thousands of vendor payments by hand to accounts.” summarize all of the different 1099s that had to be pre- This client, with five or fewer users most of the pared cost several hundred man-hours and thousands time and between $7 million and $19 million in in- of dollars. And that was before Januszewski’s team had come, implemented a system configuration more ap- to tweak the software to prevent a future occurrence of propriate for a $150 million entity. The reason for the the problem. overkill was clear -- a director of finance who joined While a large proportion of accounting software in- from a much larger organization. Three directors stallations suffer little or no bumps in the road, some- later, Yezukevich and his team were called in, drasti- times they do go way off the rails. Januszewski’s cally pared down the number of accounts and in experience illustrates one of the major reasons an in- stall project goes awry, and unfortunately, is more common than one might expect. In the above scenario, the failure resulted from the ‘We’ll deal with it when client not fully understanding the overall business and we have to’ are eight words workflow process and the VAR being put in the position of telling the client they are going that no consultant or about things the wrong way. Almost every ven- value added reseller dor and VAR consulted for this story emphasized the importance of making sure that you under- of accounting stand organizational needs in terms of features and software ever implementation, why it needs these, and who will be ‘‘ responsible for what parts of the install and ongoing wants to hear. operation of the software. David Geilhufe, senior director, corporate citizen- ship and nonprofit vertical software at NetSuite in San Sponsored by 1 1-1-15_SR_AccountingSoftware_Layout 1 12/18/14 2:04 PM Page 2 IMPLEMENT YOUR ACCOUNTING SOFTWARE WITH EASE AND SPEED You’re assured a smooth implementation with Abila MIP Fund Accounting software. Because at Abila, we provide you with topnotch training and ('&&%$#"! !'!!#!%$$#!$&%$#!(#$'#'$("!!'$#!%'$! job duties and audit trails customized for your organization. !&#"!%'$!%&$(!!%'$! !(!%'!#% !##$!!(%( '#!!#! #!$#$!&$(% ##$!#$"!$&%$#"!!!(!$%((!#!%$#%!! Focus on achieving your mission Ease of implementation, however, is just one important consideration when buying (% # $ ! %$!#("!$!%'$! #&&$!##"!!'! %$! '$(!%&$%#! Software. Download your guide at: www.abila.com/NPT www.abila.com/mip 1-1-15_SR_AccountingSoftware_Layout 1 12/18/14 2:04 PM Page 3 NPT SPECIAL REPORT: ACCOUNTING SOFTWARE PROBLEM NUMBER FOUR process, a documented implementation is turnover in leadership, it can result in Good planning is critical to a success- plan, and an agreement by all parties in- a canceled or delayed implementation,” ful accounting system installation, and is volved (internal and external) that this she said. And when responsible and/or a fourth reason that these installations plan is the right one.” well-trained people leave the organiza- sometimes fail. Having a realistic implementation tion, it can throw a monkey wrench into Donald Cassady, president and CEO of plan with definable milestones and tar- the installation, or the ongoing success Grants Management Systems (GMS) in get dates is also a must for a successful of what would otherwise be a successful Kensington, Md., cautioned against rely- installation. It’s not enough to under- implementation. ing on staff who might not understand the stand what you need. You also have to Consultant and VAR Kent Arnold, CPA, nuances of nonprofit software, or for that have a detailed understanding of what it CEO of RBP Methods in Beaverton, Ore., matter, might not have the IT background will take to get there, how long each shared a case that underscores this prob- required for a successful implementation. step in the process will take, and estab- lem. It involved a client in the mental “Unfortunately in the nonprofit world, es- lish target dates along the way. At least health field that was growing rapidly pecially in smaller organizations there one or more people on the planning through acquisitions. The client was stuck might not be IT personnel on staff. That team, from your organization and/or the with a large number of simultaneous mov- job is left to the person ‘with the most vendor or VAR you select, should have ing parts including third-party billing, computer experience.’ If this is the case, it project management experience. While Medicare and Medicaid, and bringing on Lyndy could be worth the expense to an organi- a vendor or their VAR might assure you staff from the newly acquired organiza- Januszewski zation to have an IT person on hand to that the process is “plug in and go,” tions. The organization also had to train deal immediately with problems arising most experienced implementation spe- new staff members on how to use their Continued from page 1 within the network environment.” cialists will have the scars to prove that’s parts of the software in the midst of the tional foundation in how nonprofit ac- Yezukevich shared one such failure his often not true. chaos of performing the installation of the counting differs from standard for-profit firm got called in to handle. His cautionary new accounting system. accounting is essential for a successful tale revolved around a public arts organi- David “The person who did the initial setup Geilhufe implementation.
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