Evaluating a Construction Accounting Software Vendor

Selecting new construction management software largely consists of evaluating three things:

• Product
• Software Vendor
• Technology

All three are important.  The main focus of this post is what to consider when evaluating the vendor.

Product
There are many vendors to choose from, and most vendor demos will be impressive.  The question is:  How do you know which is really the best choice for you? One way to sort things out is to look at other  important  considerations.  Relying on salesman assertions and product demos that are designed to show off their best capabilities can get you in to trouble…

Software Vendor
In addition to the product, you need to consider the software vendor’s training, support, product development, financial security, and commitment to the future.   Choosing a vendor to do business with is a critical component of the selection process.  It is critical to understand that your software provider is someone you need to feel comfortable working with both in the short and long term.  Below, I have made a list of questions that you should consider when evaluating construction software vendors.

The answers to many of these questions are not readily apparent.  They can take a great deal of time and effort on your part, but are critical to the long term success of your software investment.  Finally, if you are working with a dealer make sure you clarify if the answers pertain to the dealership, corporate, or both.

• How many different products do they support in addition to the construction software you are interested in?
• Are their salespeople experts at demonstrating the product and answering your questions?  How well do they know the industry?
• How many employees are committed to your product?
• What is their recent product development history?
• What are their plans for future product development over the next 5 years?  How much do they invest in R&D?  What new features have they released in the past six months? How often do they provide system updates beyond an annual update for tax changes?
• Do they use negative sales tactics that are disparaging the competition?
• How will they train you on the new software?
• How good is the quality of both training and support?
• Do they have a continuing education program?
• How long does it typically take to return phone calls for product support?
• How long have they been in business?
• How many clients do they support on your product?
• Are they willing to share financial information?
• Does the construction CPA community support them?
• Do they rely too much on maintenance revenues to sustain their business model?
• What do their customers have to say about them?
• What is their long term vision?
• Finally, what does your “gut feeling” tell you?  Is this a company you believe you would enjoy doing business with?

Technology
Accounting software is one of the first computer applications made available to businesses.   Consequently, there are a number of older products (legacy systems) that can have certain limitations and risks.   For example, although a legacy system may be very feature rich, it may lack the efficiency and depth that newer applications provide.   These can easily be identified with proper evaluation of the software.   However, what may not be so apparent is how difficult it is for the software provider to change and enhance the software.   After so many years, an application can become so cumbersome that certain changes become impossible or impractical.    Thus, keep in mind that the system you buy today may change very little over the years.  Changes of any significance may make the application even more cumbersome and error prone, making it difficult to work with.   In the construction industry, it is critical to invest in construction accounting software that will continue to evolve with your business and the industry.  Often, the main challenge is determining if an application is an older application made to look more current or if it is really a current technology.

Comments are closed.