Handbook on financial software shortfalls
5 November 2008
New handbook identifies financial software shortfalls – an essential business tool in tighter economic times
A practical new step-by-step handbook entitled A Plain English Guide to Next Generation Software aims to help New Zealand business owners identify potential shortfalls with their financial software – recognised as one of the main reasons why businesses struggle in tighter economic times.
The new 16-page handbook – available free of charge - has been published as an education tool by industry experts, Attaché Software, specifically for the New Zealand and Australian markets.
The Guide provides valuable information that helps businesses recognise how operational deficiencies can be significantly improved and functions streamlined in order to be more competitive and better positioned to ride out the current economic storm.
Attaché Software Managing Director, Michael Rich, said improvements may include significant time savings allowing staff to work on other projects, enhanced customer service, better financial reporting, stock control and order processing, as well as a reduction in debtors – all important business benefits in today’s tight economy.
“During the last major credit crunch in the early 1990s, 45% of business failures were blamed on inadequate financial systems,” Mr Rich said.
“The Plain English Guide to Next Generation Software offers comprehensive advice that helps identify the type of financial software relevant to small, medium and large enterprises.
“It provides a Business Assessment Checklist that allows owners to review their current business status and the level of financial software they should be using – whether it be “off the shelf” products such as MYOB and QuickBooks, large Enterprise (ERP) systems, or “The Gap” systems tailored for businesses in between.
“We estimate more than 300,000 New Zealand and Australian businesses are using financial software they have outgrown after installing it prior to Y2K, often resulting in operational inefficiency, excessive stock and debtors, poor information flow and asset optimisation.
“Such businesses are the backbone of our
economy and deserve to be as competitive as possible to
ensure they maximise their proficiency.”
Mr Rich said the Guide provides an outline of the potential benefits associated with next generation software, the environmental advantages from moving towards a paperless office, as well as some estimated financial software installation costs.
“A range of case studies are also included from individual enterprises that experienced operational problems prior to upgrading their financial software.
“Specifically, the Guide provides feedback from importers, wholesalers, distributors, manufacturers, retailers, spare parts, servicing, community groups, hospitality, training services and contractors who reported significant improvements and benefits following their transition to next generation software.”
Mr Rich said Greenhouse gas emissions from the ICT (information communication technology) industry outstrip the aviation industry. When you add all the paper that financial software produces, the ICT industry impacts almost every business in the world,” he said.
“By simply selecting Green IT financial software, the business savings generated alone may more than exceed the investment cost of the new financial software system.
“Being complacent about financial software in the current economic climate could result in many businesses experiencing a downturn in their own activities.
“This new handbook aims to help business owners assess their own individual circumstances and review their needs for the future,” Mr Rich said.
A Plain English Guide to Next Generation Software will be made available through trusted business advisors such as accountants, bank relationship managers and IT service providers.
It is also available directly from Attaché Software at www.attachesoftware.com
Attaché Software has offices in both Auckland and Sydney. Michael Rich is a member of the New Zealand Institute of Chartered Accountants and has over 30 years experience in financial software systems for SMBs. He is a seasoned guest speaker on re-engineering businesses. He now resides in Sydney after leading a management buyout some years ago.