Question

Before a new accounting package can be deployed, it needs to be configured. What does it mean to configure an accounting package? Explain the processes involved in the configuration of an accounting package.

Answer 1

First of all we need to select from the various options which accounting package will be the best suited one to our organisation. By selecting the correct software, you can reduce the cost of implementation. Yiu need to have an expert opinion in this area. You can also get the demo version installed first you can test the efficiency, effectiveness of the new software.

Here is a brief list of the major stages that needs to be completed in order to implement a new accounting software system:

• Implementation planning

This is the vital first step that can make or break your project. The expertise of knowing how all the pieces need to flow, the order of the steps, what needs to be addressed and when will impact how successful your new system is for your business

Implementation planning is where decisions on the Chart of Accounts, customer numbers, vendors numbers, inventory items, integration, who gets trained, how to go live in a timely and safe manner all occur

Discussion and determination of what information from your old system is needed in the new system. There can be an broad difference in the cost based on what they want. Be careful not to try to do more than you actually need or more than you find cost effective.

• Accounting system configuration

Establish your company chart of accounts for assets, liabilities, equity, sales and expenses

Establish company divisions, departments and cost centers as needed

All customer information into Accounts Receivable and establish new customer default AR information

All vendor information into Accounts Payable and establish new vendor default AP information

All employees information into Payroll and establish new employee information – payroll must be handled very carefully as the data in the system must feed to quarterly payroll reports correctly and year to date numbers are vital to a clean cut over

All Inventory items into Inventory Control and establish new part default IC information

• System training

Software providers include training on the software use tailored to specific individuals based on their area of responsibilities for example train payroll department employees are trained on employee adds, changes and terminations; recording employee payroll data, preparing various tax reports, procedures to close a month and year and processing various year end tax reports.

Training of new employees that did not sit in on the initial training is vital to avoid “attrition of knowledge”.

Although most companies employ smart people, they are not experts on the systems they are implementing.

Update training when new version come out. It is a waste to install a new version and not know the new features.

Miscellaneous:

Providers allow time for GO live support, both for the regular system and for payroll

Work flow processing–providers often can help a business see if their processes are the most efficient possible.

Initial bank reconciliation – most users need assistance for their first bank reconciliation to tick and tie the numbers to their old reconciliation.