Microsoft Dynamics GP

The BNET business dictionary defines forensic accounting as, “the use of accounting records and documents in order to determine the legality or otherwise of past activities.”

These activities can be tied to a government investigation, client inquiry, employee dispute, vendor issue, or just about any other challenge activity you can imagine.

In a basic sense, anyone who’s culled receipts and other documents out of one or more shoeboxes for an IRS audit is doing forensic accounting. Now, imagine multiplying the challenges by thousands or millions of accounting software transactions; and multiply the complexity to include in-depth analysis as well as review of data.

Plus, you’re now looking at zealous auditors anxious to find fault in the coming era of re-regulation and “cleaning up of America.” Newly appointed Illinois governor Pat Quinn already has announced that he wants to “fumigate” his state’s government.

So, would you rather defend yourself with shoeboxes full of financial records, or bring robust accounting services to the table?

Depending on the size, shape and sophistication of your company, you may feel you can “get by” with entry-level accounting solutions. Here are some reasons to rethink that position:

1. A security breach is only a keystroke away. An employee or hacker intent on stealing accounting software-based information is going to have a much easier time getting through one layer of security (typical of entry-level applications) versus eight (Microsoft Dynamics® GP accounting system software, for example).

Besides investigations, data theft can destroy public confidence in a company. And, there are the expensive and potentially ruinous steps needed to remediate such a breach (e.g., the company notifying holders of all compromised records, offering free fraud notification subscriptions, and the like).

The cost of many mid-market accounting solutions is justified by this one issue alone.

2. Data mining deters threats, identifies inconsistencies. Price Waterhouse Coopers addresses this issue very intelligently in a document entitled, “The DNA of a forensic accountant.” Excerpting from their writing, “Data mining is the art of analyzing large amounts of data in a manner that detects obscure facts, trends, or inconsistencies in a complete and efficient manner utilizing ‘intelligent’ computer applications. Conducted properly, data mining can be used to proactively detect fraud before a company becomes a victim experiencing material losses making them the next headline scandal. Once data such as journal entries, employee, customer and vendors master file data, as well as check registers are obtained in electronic form, a series of procedures can be performed to identify high-risk and suspicious transactions.”

Mid-market accounting system software generally will provide highly accurate and robust data repositories, which can be more efficiently mined than entry-level accounting solutions, which tend to bog down with too many concurrent users, data demands or report requirements.

3. Mid-market accounting solutions can be a deterrent to frivolous lawsuits. Sometimes, sue-happy litigants target companies where they think the consequent disruption and cost to the defendant will force settlement. Or, they seek out firms that will have difficulty defending their accounting software services. The better your accounting software reporting and accuracy, the less you will spend if sued, the less you will be disrupted, the faster you will be able to generate appropriate data in response—and the less you may be targeted in the first place.

Mid-market accounting software services such as Microsoft Dynamics give you a “built-in” protective edge over companies using entry level accounting solutions.

Sung to Pete Seeger’s “Where have all the flowers gone?”

As I watch reports of Pres. Obama’s meeting with Republican leaders over the next round of bailout—excuse me, “stimulus”—money, my confusion over accounting double standards continues to soar.

Let’s see, it’s okay for the Feds to parcel out $700 billion, $800 billion, a trillion dollars or more without clearly accounting for its use. At the same time, SMBs in this country struggle mightily to comply with existing accounting services regulations—and brace for a new round of regulatory “structure” to keep corporate America in line.

Memo to these SMBs: Don’t follow the example set by the Federal Government (at least thus far), or you could wind up in jail.

Like it or not, small to medium sized businesses in this country will pay the heaviest price for the irresponsible deals struck by big businesses—sometimes in cahoots with the very regulators charged with being public watchdogs.

So, the best move for the Main Street, USA business community is to be compliant, compliant, compliant. Go above and beyond minimum accounting requirements and regulations. Show that you mean business; and know how to run one. Here are accounting system software tips to help set the stage correctly:

1. Buy software you can grow into. Entry-level accounting solutions make much of the fact that larger accounting system software products—such as Microsoft Dynamics® GP—offer a dizzying array of features, many of which are superfluous at this stage of a company’s existence.

That may be true now, but what about in a year? What about introduction of new government regulations mandating accounting services controls and reporting that go way beyond today’s standards? What happens if mom and pop USA suddenly start getting scrutinized under the same microscope as much larger companies?

Be safe now, so you don’t have to be sorry later. Besides, as we’ve all learned with such robust programs as Microsoft Office, you can pick and choose what you want to learn and use now, and leave the rest alone. Once you get accustomed to accounting system software basics, it’s easy enough to proceed without all the advanced features—until down the road, when you need them.

2. Be secure, be secure, be secure. I keep harping on this because it’s so critical, and it’s one of the most overlooked issues in the SMB marketplace. Dynamics GP has eight—count them, eight—layers of security. Most entry-level accounting solutions have one. Do you want to trust your company’s lifeblood to one “guard” able to be compromised or relatively easily taken out, or do you want an army of guards at your accounting services door?

3. Don’t wait to be up to date. Entry-level accounting software tends to bog down after accommodating just a few simultaneous users. This slows productivity and disrupts important, time-sensitive processes. Implement accounting services that virtually eliminate this problem from the get-go, so you’re not needing to reinvent or restructure your accounting software as you go.

Many promises are made in the heat of making a sale, including fast accounting system software installation. So, just what constitutes “fast?” And, how does a QuickBooks® migration to Microsoft Dynamics GP, one of the most common accounting software moves, stack up in this department?

While every company’s requirements and roadblocks are different, there is one sure way to establish some clarity around such issues as a QuickBooks accounting services migration: get feedback from someone who’s been there and done that.

Jeff Skeen, founder of Titan Fitness, saw his company grow from 6 to 1,000 employees in six weeks, as the company acquired two health club chains and added 14 locations. This necessitated an efficient and rapid accounting software transition out of QuickBooks.

We worked with Skeen to implement a Microsoft Dynamics GP coup—delivering and deploying a Fortune 500-sized accounting solution in 60 days versus the six months typically anticipated when performed by a Big 6 accounting firm. This accounting system software easily will accommodate expected growth of the company to 4,000-plus employees in more than 60 locations over a five-year period.

What’s more, the price was one-third lower than comparable accounting services installations. Skeen expressed his satisfaction with the entire process, noting, ““I was very skeptical, then surprised. I figured I was missing something. Then, I was thrilled.”

“Wizard Productivity Systems got us up to speed and saved us on basically everything needed for a back office of six people to oversee 1,000 employees. They helped with application and license cost, training, implementation, chart of accounts setup, getting product on servers, selecting a hosting facility,” Skeen adds. “Our investors were surprised that we had put together a management team with a Fortune 500 infrastructure so quickly and cost effectively.”

Here’s a concrete example of the type of concrete time and price accounting services results that can be generated for clients. Since definitive information about these critical results typically requires some digging online, we wanted to give you some accounting software info that didn’t require a shovel.

Much is made of price disparity between such entry-level accounting solutions as QuickBooks® and mid-market stalwarts, including Microsoft Dynamics®. Often, this is comparing apples to oranges. Needs and challenges of a mid-sized company versus a very small business are typically different—and typically warrant different accounting solutions.

Given this scenario, comparing prices is a wasted exercise. Obviously, entry level pricing will be considerably lower than mid-market accounting solutions.

As the price comparison isn’t really a valid consideration, what does matter? Cost. The price paid for accounting software is the money outlay. Cost relates to additional expenditures made necessary because of accounting software shortcomings. Optimally, potential cost issues should be examined prior to buying accounting services—so that a cost/benefit analysis can be conducted. Areas that can become expensive quickly because of a poor accounting software include:

Human capital. If your people don’t take kindly to their accounting software, morale, productivity and longevity issues result. Besides the loss of productivity costs, you may have to hire in trainers and coaches to resolve issues. An employee who leaves often costs a company 70-200% of his/her annual salary for rehiring and retraining. Ka-ching #1.

Audits. Can your accounting software stand up to the typical IRS or other audit? If not, start calculating potential professional fees charged by CPAs, lawyers and other advisors to straighten out problem areas. I was struck by an Oregon newspaper article that stated, “IRS audit costs Sandy Fire District $10,000…The audit was one of the first in a ‘concerted nationwide’ crackdown of fire departments…” Given that our basic Microsoft Dynamics® purchase and implementation is less than $9,000, do the math. Of course, you can always argue that the accounting software wouldn’t have mattered in this case. Possibly.

But, if the IRS is moving to a “concerted nationwide” crackdown on fire departments, other industries are likely to be targeted—particularly as the Treasury Department ratchets up its efforts to find money anywhere to fund our economic bailout. While choice of accounting software can’t guarantee you won’t be audited, it can make a substantial difference. Ka-ching #2.

Security-related regulatory compliance. Entry-level accounting software typically has one layer of security. Mid-market accounting solutions generally offer many layers, and are much harder to hack. An article entitled, “How Much Does a Hack Cost?” pointed out, “According to the annual report by the Computer Security Institute and the FBI, the average loss per company due to security breaches in 2005 was about $167,000…Some rules of thumb say that $100,000 is a good starting point when measuring average loss per incident. Some say $200,000.” Do you really want your accounting system software to function on the low-end of the security scale? Ka-ching #3.

Oscar Wilde said, “A cynic is a man who knows the price of everything and the value of nothing.” Being price-conscious without considering the value of first-class accounting services is shortsighted and potentially very costly in the long run.

Given Microsoft’s goliath status, it’s an easy target for criticism. That’s the way of the world. As you go up the totem pole of success, critical analysis is right there alongside.

A criticism-charged business environment is why I was particularly pleased to read a blog on the zdnet.com site posted by enterprise software spokesman Dennis Howlett. He had just returned from Microsoft’s Copenhagen Convergence conference.

In part, it reads: “…customers seem happy with the company and what it is delivering. This is the third time in succession that I’ve attended Convergence and found largely happy customers…This was a modestly confident yet cautious Microsoft, happy to parade good customer stories. This is to be welcomed and a sharp contrast to other shows where the emphasis is often on ensuring the company’s message is not tempered by customer reality. As we move forward in an uncertain economy, these stories will become much more important to commenter’s and customers alike.”

As a Microsoft partner who makes a living with Microsoft Dynamics accounting software products, I paid close attention to the words “modestly confident yet cautious Microsoft.”

This is where I want my accounting solutions partners to reside. More important, it’s where customers should want their accounting software companies to operate. Companies that appear over-confident often cross the line into hubris (roughly translated as “arrogant pride”—you know, stuff like flying in your corporate jets to ask Congress for billions in bailout money).

Once this happens, the company tends to be less responsive to customer suggestions and needs, and too assured of its own rightness. Ultimately, this results in product inferiority—particularly in mission critical arenas such as accounting software.

You also don’t want a company that’s underperforming, not meeting the needs of its customers. “Modestly confident yet cautious” tells me that Microsoft is working to meet customer needs and is listening, without being presumptuous. It also shows an ongoing, omnipresent commitment toward continuous quality improvement in its accounting software applications, as well as its aligned solutions—such as CRM.

As a Microsoft Dynamics accounting software user or prospect, you hopefully will find this heartening. At a time when economic downsizing, cutbacks and shutdowns are multiplying exponentially, it appears your accounting system software is safe with Microsoft.

Though there are many similarities between Microsoft Dynamics® GP and SL accounting software, finding resources to usefully compare and contrast them can prove challenging.
In fact, Microsoft itself reinforces the somewhat muddled profile of these two mid-market accounting solutions. Its information about both solutions tends to blur the lines and distinctions………………………….Please visit our friends over at MS Dynamics World

A recent Wall Street blog post pooh-poohing Microsoft’s 0% financing for Dynamics accounting software left out one key point: Those not qualifying for 0% may still find themselves a sweet deal.

The post notes, “If free money in the middle of a credit crisis sounds too good to be true, that’s because it probably is. Only qualified customers will get 0% financing and, as a Microsoft spokeswoman tells us, ‘the guidelines are pretty stringent.’”

Even if sweet interest rates aren’t in the offing, there are still the Economic Stimulus Act incentives that effectively can reduce the purchase price by double digits.

But, here’s the most important point of all: While we all want to save money in a down economy, it’s important to get the accounting software that will serve your needs—deal or no deal.

If your buying decision for any accounting system software ultimately hinges on the type of deal you can negotiate, you’re buying it for the wrong reasons. Accounting software is too important to a company’s continued operation to be evaluated on the “sweetness of low price.”

That said, there are deals to be found on Microsoft Dynamics® GP and SL accounting software. Just like everyone else, Microsoft is trying to move product. As the WSJ blog added, “…this is just a hook to get people to consider buying software at a time when they might otherwise delay purchases.”

Before comparing prices, incentives and perks, first vet accounting software to qualify potential accounting solutions for your company’s immediate and future needs. Once you’ve identified one or more accounting solutions that can meet your needs, then—and only then—see what kind of deal you can negotiate.

Making the wrong accounting software decision inevitably will cost your company much more than any savings effected by sweet financing or other inducements. Those costs, ultimately, will make that sweet price turn sour.

Score a win-win: First and foremost, decide to buy software that will best serve your needs. Then, and only then, negotiate your best deal.

Decisions, decisions. When the economy’s down, stress goes up. What better way to alleviate all that tension than endlessly examining and evaluating potential business solutions?

It’s a great way to pass the time, and gives the thinker a productive diversion from negative Wall Street and Main Street reports. “I’m not just sitting in limbo. I’m carefully considering all the options, to make the best buying decision in these tough times,” the analyst will rationalize.

Careful evaluation and in-depth investigation is healthy and responsible. Never-ending decision-making is analysis paralysis—a malady that’s cropping up more frequently as economic conditions go down.

In many ways, analysis paralysis is worse than downsizing. As Theodore Roosevelt said so eloquently, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

Be incisive, then be decisive. Especially when it comes to accounting solutions, you don’t want to make the wrong decision. But doing nothing may lead to your undoing. Here are some ways to help drive effective decision-making about accounting system software in these decidedly unclear times:

1. Set an accounting system software decision deadline at the outset. Put yourself on a specific timeline, and stick with it. Don’t be arbitrary with setting the deadline. Make sure you give yourself enough time to complete a careful accounting services evaluation; just don’t set the deadline so far forward that it disappears amid all the other important issues.

2. Establish your “wish list” of accounting services. Give yourself a finite, concrete list of prospective accounting solutions at the outset. Along with a timeline, this will help define your responsibilities—and minimize the possibility of accounting software analysis paralysis.

3. Give yourself an accounting software “allowance.” As a starting point, find the “book rates” for accounting system software that you’re considering, then establish your top tolerance for pricing. For example, if you’re considering Microsoft Dynamics® GP, first get pricing from Microsoft and/or a Microsoft partner. Once you’ve figured out what you’re willing to budget, then you can start shopping for deals. And, believe, me they’re out there.

By putting some form around the accounting software search at the beginning, you can come much closer to assuring yourself of a happy ending.

If you don’t think more regulation is coming, think again. Just today Bloomberg reported, “Former Federal Reserve Chairman Alan Greenspan said a ‘once-in-a-century credit tsunami’ has engulfed financial markets and conceded that his free-market ideology shunning regulation was flawed.”
Increased regulation, regardless of form, undoubtedly will affect corporate financial recordkeeping. Small to mid-sized businesses lacking accounting software that provides accurate and in-depth financial reporting had better start rethinking their accounting solutions now—before regulatory requirements force them to rethink—and revamp—later.
So, what do you need to help ensure compliance with regulations not even enacted yet?

• Ask questions about what’s coming—then evaluate. Do online research, visit online social/business networking sites where pertinent topics are being discussed, query industry trade organization authorities, read pertinent articles, talk to trusted advisors. Get educated about what’s likely coming, so you can stay ahead of developments.

• Beef up accounting software to meet future requirements as well as today’s needs. As we all know, when government ramps up regulation, resulting mandates don’t always appear logical. So, make sure your accounting system software can handle anything even remotely on the radar screen post-election. This means accounting solutions that can handle “heavy lifting” today, and can be updated as new developments dictate.

• Don’t be pennywise and pound foolish. In the rush to belt-tighten, don’t pinch pennies on under-powered, under-performing accounting software. It doesn’t take many hours of CPA or legal fees spent dealing with regulatory non-compliance to offset any savings from buying lower-priced accounting solutions. To get specific, look at a QuickBooks Upgrade. If you have a small company whose financials can easily be handwritten on a spreadsheet, you’re likely okay with QuickBooks, upgrade or not. But, if you have any degree of complexity, a pattern of company growth, multi-level security requirements, multiple concurrent accounting software users, or any other expanding scenario—look at such heavy duty solutions as Microsoft Dynamics GP or SL.

From Roosevelt to Roosevelt, the message is clear: Our biggest enemy is inability or unwillingness to act constructively when adversity strikes.

Teddy Roosevelt said, “In any moment of decision, the best thing to do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

FDR proclaimed, “The only limit to our realization of tomorrow will be our doubts of today.” He’s also responsible for the famous line from his first inaugural address: “…the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

Unfortunately, too many small-to-mid-sized businesses operate mainly from a place of fear. At the first sign of a downturn, they start tuning out the cacophony of bad news by burying their heads in the sand. Of course, once you bury your head in the sand, you—and your company—will run out of life-giving oxygen rather quickly.

Fear drives more business failures and economic malaise than any other downturn-related factor. Hope, determination and perseverance are the antidotes.

At this uncertain time, I call upon small to midsized businesses of America to find renewed hope, fortify it with determination, and rely on perseverance when the going gets tougher.