A recent LinkedIn question about “concrete ERP return on investment” got me into a “let me count the ways” frame of mind.

Overarching “concrete” ERP return on investment depends on how you mix and apply the concrete. Such ERP powerhouses as Microsoft Dynamics® GP can provide huge ROI if properly implemented and utilized. Benefits are myriad and span the entire spectrum of technology—from sophisticated security to ability to track receivables and payables with pinpoint accuracy.

While ROI is ongoing, it also can be episodic. For example, one regulatory audit can wreak havoc on an unprepared company—both in terms of use of the in-house workforce to assemble needed information, and payments to outside financial and/or legal counsel. Appropriate accounting software can eliminate many of the headaches—much like being prepared for a tax audit ahead of time, instead of having to gather together needed documents and data.

Following are just 10 of the ways that robust and reliable accounting system software can bring about solid ROI:

• No data entry redundancy;

• Rapid report assembly and printing;

• Up-to-date, accurate financials for forecasting;

• Elimination of time-intensive, costly “build as you go” accounting system software functionality in such areas as security, scalability, and currency;

•Facilitating reliable and straightforward employee use, thereby saving time and enhancing morale;

• Enhancing employee training on accounting solutions with clear and comprehensive step-by-step self-directed learning protocols;

• Improving employee retention programs, thereby reducing exorbitant costs related to rehiring and retraining;

• Improving employee recruitment efforts, because prospective employees view robust and reliable accounting software as a valuable employment benefit—this results in a more focused and effective recruiting effort, in turn leading to more productive hires;

• Serving as a valuable business development tool, because stellar accounting services provide one bedrock indicator of a stable company capable of providing accurate and timely information.

Of course, the ultimate key to success lies in intelligent deployment, consistent management and maintenance, and timely updating of accounting system software to address changing rules, regulations and functionality. Since it all starts with installation and accounting software training, make sure your ducks are in a row—and are able to move nimbly without getting mired down in soft concrete.

Too often when companies decide to deploy an Enterprise Resource Planning system, such as Microsoft Dynamics® GP or SL accounting software, managers dictate its use rather than dedicate resources to ensure employee acceptance and adoption.

It doesn’t work that way. Some might argue that the current economic situation will make all employees “suck it up” to keep their jobs. I look at the situation from the opposite perspective—now is the time for companies to optimize their employees’ productivity and morale. Only by having a satisfied workforce can a company maximize efficiency and cost-effectiveness in any department—and this is especially true in accounting services. Today, it’s more critical than ever to add every last nickel possible to the corporate profitability jar, and properly deployed accounting system software can help make this happen.

An August 2008 article by Alex Hankewicz recounted the “Top 10 Success Factors in ERP Deployment” based on a study of US firms experiencing a new ERP system—which includes the realm of accounting services. Following are some observations applicable to accounting system software deployment based on study findings:

•The most important factor when deploying an ERP, including accounting software, is senior management providing top-down leadership and full participation in key decisions related to the project;

•Second most important is adequate project team knowledge. The Project Manager (PM) must be able to rely upon both adequate quality and quantity of team resources to do the job. If required, the PM must be able to mentor, encourage and teach new skills to achieve desired milestones. This includes the all-important arena of accounting software training;

•Third most important is ability of the PM to achieve full interdepartmental cooperation. Working with conflicting schedules and constraints to create an atmosphere of full cooperation throughout an accounting services department is the objective;

•Further down on the list is the PM’s ability to exercise interpersonal skills to motivate people and communicate effectively with all management levels. The PM also must be aware of, and sensitive to, cultural and global differences in work ethic and management styles as part of this process. This requires ability to manage priorities effectively and know-how to coordinate across multiple time zones that may be involved in the ERP deployment.

Being clear, communicative and caring in how the workforce—including the critical functions handled by accounting services—is supported throughout an ERP deployment can be the make-or-break difference between a smooth, satisfying process and a sour result.

As companies downsize in response to economic difficulties, some are looking at taking their accounting software with them. Some cite simplicity as a reason. Others bemoan “exorbitant” consultant management and maintenance fees. Before going into a downsizing frenzy, consider these important accounting software issues:

1. Decide whether your present accounting software is overly complex—or just comprehensive. For example, consider Microsoft Office. It’s a comprehensive application, and often the user doesn’t need many of its features. But the user can fairly quickly learn basic functionality, and go as far as needed or desired. In this sense, Office is straightforward; the learning curve is basic, and complexity isn’t forced on the user.

Among accounting solutions, there are definitely systems that fall into this Microsoft Office category. Microsoft Dynamics® accounting software, for example, offers comprehensive capabilities—but the basics are fairly straightforward. It doesn’t force users to go through complex training ordeals to gain basic proficiency.

2. Decouple accounting software from maintenance and management considerations. If you’re paying substantial maintenance and management fees for your present accounting software, make sure they’re justified. Too often, companies throw out the baby (perfectly useful accounting software) with the bath water (overpriced, unnecessary consulting). You may discover that it’s the consulting program, not the accounting software, that requires downsizing or rethinking.

3. Decouple accounting software from training issues. Today’s major accounting solutions offer myriad self-directed, e-learning and webinar accounting software training options. Even with such mid-market mainstays as Microsoft Dynamics, trainees can get up to speed quickly using these tools. If someone wants to sell you ongoing, instructor-led courses, dig deep to find out why. You may discover that much, if not all, training can be handled as part of the accounting software package—with little or no additional expense required.

4. Evaluate system change disruption and demoralization factors versus the stability of a system already in place. No matter how well it’s presented or packaged, change is daunting for many. In the current, rapidly-changing economic environment, a bit of stability and familiarity can go a long way with employee longevity and productivity. “If it ain’t broke…don’t replace it.”

5. Think long-term and next presidential term. When the economy ramps back up, you’ll want to be using accounting solutions that are robust and scalable enough to keep pace. Plus, potentially expanding government regulation with a new Administration inevitably will rein in and revamp much of the presently deregulated financial structure. As this occurs, companies will want to make sure that their accounting software is plenty comprehensive—to handle any regulatory reporting and auditing challenges coming their way.

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.

I came across an article on a website called isnare.com that directly addresses the critical profit-generating support that accounting software provides small business.

Many entrepreneurs—especially those who don’t live and breathe accounting numbers—view accounting software as a necessary evil required for tax compilation and some degree of performance assessment.

In reality, accounting software can provide a powerful tool to boost revenues and cut expenses. Properly installed, configured and understood, accounting system software can provide the lifeblood to sustain a company through many serious scenarios in the days ahead.

Isnare.com article author Terry Cartwright addresses the challenge by noting, “Producing financial accounts may well be an administrative headache for a small business and many self employed businesses put off this essential business and reduce it to an annual event. There are major benefits that small business can derive from operating the financial system as an important part of the business management.

“Big business invests millions in sophisticated accounting software and financial control systems because financial management is seen as a key to financial success.”

The article goes on to say that one major accounting software function is to establish and evaluate gross profit margin in both percentage terms and volume compared with fixed expense levels. Accounting software used to generate a monthly profit and loss calculation will help determine immediately if gross profit is sufficient. Identifying areas where it can be improved can substantially improve profitability.

Adds Cartwright, “That is the benefit of accounting software, the production of actual financial figures that indicate where and how much action needs to be taken to improve the net profit earned. That action may indicate a need to improve sales volume, increase the gross margin through higher sales prices or lower direct costs [through] a reduction in overhead and business running costs.”

Other useful information can be generated by reviewing historical and present financial figures. Comparisons can identify such areas as sales opportunities not being fully explored, ways to improve gross profit margins, and steps that can be taken to limit excess expenditures, thereby achieving cost control.

Although not the most glamorous part of a company’s operation, accounting services undeniably rank high on the list of most important to future survival.

So, I have been writing about the importance of accounting software that can ensure compliance with accepted practices and regulations. Then, along comes Bernard Madoff, who’s allegedly able to circumvent compliance controls and implement a $50 billion Ponzi scheme.

It certainly validates the question of how effective any accounting software can be in ensuring accurate and above-board practices. Of course, it also adds fuel to the regulation fire that inevitably will heighten levels of control and reporting—and consequently the need for secure and sophisticated accounting solutions.

A Dec. 23 article in the Wall Street Journal frames the debate: “Questions about compliance practices at Bernard L. Madoff Investment Securities LLC are troubling many securities industry observers, as losses related to an alleged $50-billion Ponzi scheme associated with the firm’s investment advisor arm continue to impact a widening international circle of investors. ‘How could you have this massive scandal going on in a firm that’s adopted adequate procedures? That’s what compliance is all about,’ says James A. Fanto, a professor at Brooklyn Law School in New York and author of Broker-Dealer Law and Regulation.”

So, what are some lessons to be learned from all of this in the world of accounting solutions?

One, hire honest people. No accounting software, no matter how robust or well-configured, can function flawlessly if the people operating it—or their bosses—have crooked intentions. Just because you have excellent accounting system software doesn’t mean you’re totally protected. People still matter—a lot.

Two, the importance of adequate accounting software cannot be overstated. Notes the Wall Street Journal article, “…investigators issued a subpoena to David Friehling, a New City, N.Y., accountant who audited the Madoff firm’s financial statements, and are seeking documents related to the Madoff firm going back to Jan.1, 2000. Friehling has until Dec. 29 to fulfill the request.” Do you think for a moment that this accountant wants to be caught with his figurative “accounting software pants” down? Obviously, sophisticated, up-to-date accounting system software would aid his cause.

Three, when accounting practices and reports are challenged, how many people want to spend inordinate amounts of time trying to comply? The right accounting software can be a huge time-saver in many types of situations. In some cases, it can be a potential “livelihood-saver” as well.

In today’s cash-challenged business environment, many companies consider their current accounting software sufficient. No matter what accounting solutions are presently employed, “They’ll just have to do” is the frequent retort of company executives and managers. Let me cite three primary reasons why this may be a bad idea:

1. Companies need to score “style” as well as “substance” accounting software points. Essentially, this means being able to instill confidence in anyone examining the books as well as providing comprehensive, up-to-date data. Think about the IRS auditor conducting a tax audit. If the accounting software is robust and current, the auditor is more likely to gain confidence in the respondent’s accuracy (very important style points). Conversely, outmoded accounting software or sloppy hand entries may convey an attitude of being unwilling or unable to offer accurate records (even when this isn’t true).

2. The right accounting software can save you money from the get-go, paying for itself rapidly and becoming a virtual profit center. For example, accounting solutions that optimize handling of accounts payable can pinpoint timely payments that maximize use of that money as long as possible. If a company pays some vendors too soon to maximize interest capture, and/or pays tardily and accrues late fees and penalties, it’s easy to see where accounting software can either be costly or cost-saving.

3. Accounting software/CRM linkage can make or break the sale. Having a seamless conduit between accounting services and a customer relationship management program can help make the sale, both in terms of quality of information provided and making a good first impression (again, style points). Conversely, faulty or failed connections inevitably will lead to loss of existing customers as well as hamper acquiring new ones—particularly when a competitor has robust accounting software in place.

Get protected. Get proactive. Get new accounting software now, if you need it.

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

Training and Development Magazine (T+D) just reinforced what I’ve been saying repeatedly about employee training: It’s very valuable and will become even more critical to company ability to compete in the future.

In its December 2008 issue, T+D discusses “Learning in 2020.” The article notes, “…work organizations are already finding new ways to harness our interconnectedness to make information faster, more current, more accurate, and more customizable for individual workers. This trend will expand with the rise of intelligent tutors and on demand learning technologies…Many industry experts agree that learning will be a critical part of the future of work and employee development. Workplace learning and performance professionals will still be involved in the skills training portion of the field, but they will become facilitators of learning.”

As a company involved in implementing accounting software, we are heavily invested in training. It makes no sense to buy software, install it, and then scrimp on the employee accounting software training needed to make sure people both understand and appreciate its benefits and features.

Despite what we see as a common-sense approach, stories of accounting solutions being forced on unwilling and unwitting employees run rampant. Too often, companies view accounting software training as an afterthought or a bare necessity.

Accounting software is the lifeblood of an organization. It mandates and deserves adequate training and support, so people can practice, learn and make mistakes in a non-judgmental environment.

We’re already well into the trend identified by T+D when it comes to self-directed accounting software training, and our role as learning facilitators—not just “preach and teach” professionals. Our standard protocol for Microsoft Dynamics GP and SL implementations includes a comprehensive menu of automated, self-paced training processes coupled with support customized to individual and specific company needs.

As the T+D article adds, “…training must be aligned with business goals and opportunities as determined by enterprise leadership. Its deployment will shift from the ‘tell’ mode to the ‘guide’ mode, achieved through work-based learning leveraging coaching, mentoring and facilitated group interaction.”

It’s extremely critical when implementing new accounting software that the impact on the entire workforce and company productivity be taken into account. By aligning business goals with accounting system software objectives upfront, companies can look forward to much smoother deployment. Effective, timely, supportive training is the glue that ties it all together.

As training modalities progress, look for more informal, collaborative learning environments. The T+D article explains, “More and more individuals are managing their own personal, informal learning and building their own personal learning environments…more teams or groups of people are making use of social media and Web 2.0 tools to share links and content with each other, and are participating in discussions, collaborating, and co-creating content.”

Train early. Train often. Train to stay ahead of the curve—and you’ll stay ahead of the competition.