Information Systems

An accounting system is a collection of interrelated processes designed to accumulate, organize, and report on an organization’s transactions. The ultimate goal of an accounting system is to generate reports based on this information to support management decision making. These reports help management make well-informed decisions.

In order to integrate a new and effective accounting system into an organization it must go through a process referred to as an “implementation.” An implementation involves a series of steps that begins with a plan and ends with the achievement of a “go live” milestone.

The following list of steps is a conceptual overview of the implementation process for a generic organization. Various factors, such as the expertise of an organization’s IT department or the organization’s available resources, will influence the design and the related implementation steps required to achieve the go-live plan.

Project Plan

An implementation should begin with a project plan. The plan can be written in Microsoft Project format. The plan should list all milestones, the related timeline, and the resources required to get from the beginning to the end of the implementation.

Project Manager

An individual should be designated as the implementation’s project manager. It can be beneficial to the overall process for the project manager to come from the ranks of the end-user community to avoid the perception that the new system is being crammed down the user community’s throat.

The project manager will be responsible for managing the implementation team. It is recommended that the implementation team be comprised of stakeholders who come from cross-functional areas within the organization. This way, the process will include individuals that are representative of the areas that have a vested interest in the new system.

Data Conversion Plan (Mapping)

An implementation needs to take into account whether or not data from the existing accounting system needs to be converted into a format that is compatible with the new accounting system. Depending on the system “coming from” and the system “migrating to,” the data conversion process could be relatively simple or complex. Data mapping is an element of the conversion process.

Conference Room Pilot

The implementation can include a Conference Room Pilot (“CRP”). A CRP is an essential step in the implementation. The purpose of the CRP is to expose managers and power users in attendance to the functionality of the new system and identify opportunities as well as limitations of the transaction processing in the new system compared to the transaction processing of the old system. In some cases, users will have to adapt to the new system and in other cases the new system might have to be modified. During the CRP opportunities for process improvement are frequently identified.

Application Configuration

At the conclusion of the CRP there may be a determination that one or more of the applications in the new system (Accounts Payable, General Accounting, etc.) needs to be modified to better facilitate the processing of the organization’s transactions. On the other hand, the CRP might reveal opportunities for process improvements.

Reports (Custom Reports)

As mentioned earlier, one of the expectations of a new accounting system is to generate reports to assist management with the decision making process. A common difficulty (“opportunity”) encountered in an implementation is the ability to satisfy users who request that the system provide reports that are exactly the same as the reports users are already accustomed to. Frequently, in order to satisfy this request, custom reports will have to be created.

Training

Training on how to use the new system is an investment of resources that needs to take place both before and after the go-live. Management should recognize that certain processes, such as the monthly close of the accounting books, might take longer because of the ramp-up speed with a relatively unfamiliar system. Hopefully, the investment in training will mitigate this slow-down.

Within the world of software development the term “beta” refers to the fact that the software is still under development and is not the final version of the software.

Why does a software manufacturer offer beta versions of their software to the general public?

Software manufacturers offer beta versions in order to take advantage of a discriminating user community that will put the software through its paces and identify bugs that need to be fixed. It’s a lot like “teamwork” in the sense that the user community gets a free look at the software in return for having input into the creation of the final version.

In other words, to use current marketing language, companies are “crowdsourcing” feedback from customers to obtain better quality and Product Market Fit (PMF).

Perhaps the best piece of advice one can give to those users who want to try a beta version of computer software is to make a full-system backup of your computer system prior to using the software. In this way, you’ve made the maximum effort toward protecting yourself in the event of a catastrophic breakdown of the software.

In fact, the full system backup approach is a prudent safety measure for protecting the user from a breakdown in any new software. This is especially true in the event of a security breach. Considering the rise of hackers who use ransomware to break into computers, lock users out of their systems, and threaten to destroy valuable company data unless a ransom is paid, it is an extremely good habit to do regular full-system backups -- as often as possible, frankly. In the case of a security breach, if you’re ever infected with ransomware, you can simply ignore the hacker’s demand for money and restore the lost data using your backup.

One of the big benefits to getting organized and going digital is you can get rid of all that clutter that not only bogs down your desktop, but also discourages you from being organized.

Scan and file documents that you consider important. This way you can keep the original in a safe place while still having a digital copy available to you when you need it.

Scan and shred less important documents. Sometimes we keep documents we think we might need in the future on our desktops for weeks, months, even years. This only adds to the mess and disorganization. Scan them to the cloud and shred away, you can always print yourself a brand new copy.

Streamlining the amount of paperwork and documents you keep on your desktop, in your inbox or wherever you keep it, will pay off in many ways. The first is obvious, you will be organized and have what you need available in digital or hard copy, when you need it. The second is that organization breeds organization. When you get a new bill in the mail and you sit down at your desk faced with a pile of old, new, and who knows, you will be more likely to take that bill and add it to the mess. If that desk is clean and organized, with the tools in place to take that bill and scan it to the cloud, with an event in your calendar set to remind you to pay that bill, you will be more inclined to do yourself the favor of keeping your finances in order. 

Choose a secure online storage system. There are a lot of choices from Google Drive to Dropbox to Apple iCloud, but they all basically perform the same function and for personal users they are generally free. When you take a look at these services think about which one suits your needs in terms of ease of use, accessibility and your lifestyle. Also consider compatibility, while all of these should work fine on any device or OS, for general ease of use if you have an Android device you might want to look at Google Drive, Microsoft OS users might enjoy OneDrive and Apple users might like the looks of iCloud.

Once you have picked out the Cloud server of your choice, create some empty files, start simple with your basic Taxes, Receipts, Bills, Banking, etc. and go from there as needed. That way, when you upload your first documents you have somewhere to put them. You don’t want to upload all your files to the cloud only to find yourself with something as cluttered as your desktop.

Create a Routine.

Later on we will discuss using a cloud base calendar to help you stay organized. First things first, where do you keep those hard copies while they are waiting to be scanned into the cloud? The answer is a simple as you want to make it. From a simple inbox/ outbox on your desk to one folder that you dedicate to keeping documents that need to be scanned. Either way the important part is that you make a habit of following through.

Inbox/Outbox
This method is as simple as it sounds. The inbox is for documents that need to be scanned
and uploaded to the cloud, the outbox is for items that have been scanned and need to be filed away or shredded. The only downside is the temptation to ignore either portion of this box and let it’s contents get out of hand. This is a better choice for those of you who generally need less motivation to stay organized.

The One Folder System
One folder for documents that need to be scanned and uploaded. This leaves you with no choice but to take action with your documents once they are scanned and uploaded, they need to be filed away or shredded immediately because you have nowhere else to put them.

Whether you choose to follow one of these systems or have one of your own the most important thing is to be consistent. Stay diligent and eventually it will become a habit and once you see the benefits it will become a habit that you are more than happy to have.

Keeping financial documents organized and archived can be a chore. However, when staying organized becomes a routine and you provide yourself with the proper tools, staying organized can be easier than you think. On top of that, keeping your financial documents in order can really pay off. This month we are going to share with you some ideas, techniques and tools that will help you get organized and, with a little work, stay that way.

Use the cloud.
Using a web based storage service is a great way to securely store your documents so that they are always accessible to you. Uploading your documents and records is quick and easy with the added benefit that since your items are stored in the cloud, you don’t need to worry about losing them. Choosing the cloud service that is best for you is the first step towards digitizing your financial life and getting organized.

Create A Routine.
It would be nice if we had the time to scan and upload all of our documents as we receive them, but that’s not always the reality.

Scan it. Get the right tools.
There are many great tools out there for transferring hard copies of documents to digital.  
From simply utilizing your smartphone’s camera to desktop scanners to specialized document scanners that will upload your documents straight to the cloud, depending on your needs there are tools available that will suit them. The best thing to do is start simple and as your needs become clear you can seek out the right equipment.

Make Your Calendar Work for You.
All the gadgets and web storage in the world aren’t going to do you any good if you don’t
utilize them. Keep all receipts in a folder and mark your calendar for daily, weekly or monthly scanning depending on your needs. Once they are uploaded you can file them away and access them on the cloud.

Shred It, and Remove Clutter
All the gadgets and web storage in the world aren’t going to do you any good if you don’t
utilize them. Keep all receipts in a folder and mark your calendar for daily, weekly or monthly scanning depending on your needs. Once they are uploaded you can file them away and access them on the cloud.
 
It’s easier than you think to get organized and to stay organized. It just takes a little due diligence. The payoff is that your tax deductions will be easy to identify and refer to when needed, your finances will be clear and easy to refer to making it clear where your money is, where it’s going and how you can keep more of it, and you won’t waste valuable time and energy searching for any of it.