Microsoft Dynamics GP

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.

It’s October 1, 2008. Do you know where your QuickBooks® accounting software is? According to a BusinessWire news release, they’re now at version 2009.

The release points out a variety of new features designed to improve online accounting services and communications. It also talks about “small businesses” finding more ways to get ahead and make more money using the newest QuickBooks upgrade.

I don’t doubt that this QuickBooks upgrade is more full-featured. I can see where the new bells and whistles will speak to some needs of small business owners.

What I didn’t see, in the news release anyway, is discussion of QuickBooks 2009’s ability to handle a higher number of concurrent users, higher overall transaction numbers and the like.

That’s not a knock on QuickBooks accounting solutions. It’s just a reminder that every accounting software application has its limitations. QuickBooks can work well for small businesses whose needs are moderate. When it begins to move slowly, both in terms of processing information and generating reports, or when people have to start waiting in line to get on the system, it’s time to consider a QuickBooks upgrade—to another accounting software manufacturer.

Obviously, I’m a fan of Microsoft Dynamics accounting software as a logical next step for companies seeking higher transaction capabilities, faster performance, and ability to handle substantial company growth in the small-to-midsized arenas.

Here are six areas to examine when you’ve determined that new accounting software is a must, or you’re moving in the direction of more robust and scalable accounting solutions:
1. Evaluate expected transaction levels
2. Determine required level of financial reporting.
3. Calculate number of expected simultaneous users.
4. Establish desired level of accounting services monitoring.
5. Make sure the accounting software integrates with business applications familiar to employees
6. Decide what level of security is appropriate with the new accounting software.

Is there an accounting software upgrade in your near future? If so, don’t land in quicksand by selecting accounting services that will drag your business down instead of lifting it up.

I believe that we are at an inflection point today in how enterprise software is being distributed and implemented. Over the course of the past ten years we have seen the emergence of new models for how software is sold (business model) and delivered (implementation). This change has been most dramatic at the lower end of the market (1-10 users). One need look no further than SalesForce.com for a perfect example. And I believe that if Microsoft has their way, their Dynamics GP product (formerly Great Plains) could be next.
(more…)

One of the value propositions behind the Wizard X4 Productivity Suite is to let the user help themselves. With our easy to use applications users can easily set up any Microsoft Dynamics GP or Dynamics SL module, and convert data. If the user performs these functions it frees the Microsoft Partner up to perform high level consulting tasks like customizations, work flow or integration to sub systems. (more…)