Don’t Rely on the Dealer’s Advice for your Accounting Software
When you are on the lookout to buy a product, the last person you should go for advice is the salesman. The reason being the salesman, in order to increase his commission or bonus, would naturally sell the most expensive version of the product.
If you want to buy a washing machine you would normally-
- Do a Google search for different brands
- Check user reviews and compare cost
- Ask friends for recommendations
As the owner of an Accounting Outsourcing company I deal with many small & medium enterprises. It puzzles me that many small business owners, who will do lot research before buying a washing machine, solely depend on the advice of the dealer when buying accounting software for their companies.
My company was recently appointed to handle the accounts of a small company. This happened after they had bought and installed the accounting software. They had bought the most expensive version of the software with 3 user licence for USD1,500.
The software is used by the Administrator and me. The Administrator uses the software on a regular basis to make invoices. I use it a few hours a week to do reconciliations and to finalize the monthly accounts. We never use it simultaneously. The 3rd licence of the software is not used at all.
If the company had asked my advice I would have recommended them to buy a lower version of the software with 1 user licence. This could have been installed in the network and could be accessed by more than 1 user. The limitation of 1 user licence is, only 1 person could access it at a time. But this company has no requirements for simultaneous access for now or foreseeable future.
The cost of 1 user licence of this software is USD400 which could have resulted in a 73% savings to the company.
My request to small company owners is do some research and, if necessary, ask for professional advice before deciding on an accounting software. Last and not least please don’t rely on the dealer’s advice.
