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In: Accounting

Your new client, Pool Chem, Inc., is looking to purchase new accounting software. Your client asks...

Your new client, Pool Chem, Inc., is looking to purchase new accounting software. Your client asks for your advice on the advantages and disadvantages of purchasing an "off the shelf" program vs. an internally developed program. Prepare a response to your client.

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Answer:

Custom Software
Advantages Disadvantages
Made for the unique challenges of your situation Involves huge investment
Designed for unique circumstances Ultimately end up costing more than the off the shelf software, which is monthly subscription packages usually
Evaluation phase requirements are met using custom software Takes more time, you should be facing the development phase for several months for a quick fix
Can be easily changed and extended according to your requirements Not easy to operate and getting an instant result is difficult
Offers competitive advantage over the competitors because it's more personalised and is something that competitors don't have Dependent on the custom software provider. If the provider becomes unavailable for whatever reason, the inconvenience will be caused
Off the Shelf Software
Advantages Disadvantages
The packaged solution involves quick Installation and use when the software is compatible with the business systems It may not meet all the requirements of your business
Low upfront cost, free at initial stages then the fees like maintenance and subscription fees are charged (Example: SaaS) Rigid and difficult to modify
Adoption of the exact solution is available in the market, can give the software a test run Often faces compatibility issues
Repose confidence Replication of Innovative ideas is possible with the off-the-shelf software
Can check reviews before purchasing

Note: The decision between the above two can have future consequences down the years. Make the decision with the objective which is long term in nature. Please be careful before selecting the software for your business. It is a present investment for future gain.

ekkarill92 answered 1 year ago
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