How to Implement an Accounting System

Video Transcript

"My name is Miranda Chook, a CPA. Here are a few attributes that a company should consider when implementing a new accounting system. First of all, consider the ease of use in terms of data entry. Now how many screens does an accounts payable analyst have to go through to set up a new vendor, for example, or a new customer. How many steps are involved in posting a journal entry? Another consideration is processing time. Is the system a Batch System or is it Real Time? Another aspect of processing ease might be that some of the systems can actually accept uploaded spreadsheets. If you have that type of business where you know, many transactions and it's easier to input on an Excel spreadsheet. But then in order to actually post them to the general ledger. Then perhaps there's an automated step that the accounting system will allow acceptance of that spreadsheet can announce some of the rework. Another thing that you should consider are controls in terms of for example, password features. How often are they required to be changed or are they required to be changed? Another attribute to consider is data validation. There are certain fields where you might want to require that entires balance. Or that only numeric field, numeric items can be input into that particular field. Also think about reporting. Are the stand of reports that are already written in the software, if not, how easy is it for the users to create them. As well as Ad Hoc reports, that you just want to do on a fly. How easy are those to create? Finally, you may also want to consider integration. Is this just going to be an accounting system or will it also include your order entry and your inventory transactions, as well. Now when you test the system for the actual implementation, test as many scenarios as you can. Deliberately input errors so you understand how the system handles errors, and how it shows you that something has gone wrong as far as a transaction is concerned. Now many ERP systems don't really allow for parallel reporting. So before you go live, make sure that your test instance is reconciled to the dollar before going live. And of course, if you can, talk to other businesses or other clients of the company that's helping you implement this system, if you're using another company. And talk to them and find out what the pros and cons were during the implementation stage as well as the ongoing use stage."