November 2007: Technically Speaking

Q:
I recently purchased a new accounting software program for our contracting company.  The salesman promised that we would be live within two weeks. It’s been more than a month and we are still not there. I’m ready to scrap the whole thing and go back to our old system. What do you suggest I do?
Scott

A:
Implementing a new software system is a lot like building a house. Can it be finished in two weeks? If you work around the clock… and double your manpower… and risk cutting some corners, it is quite possible. Realistically, however, it can take anywhere from four to six weeks or up to a year to implement a new construction-specific accounting system, depending on the size of your company and other factors. 
Typically, for a small to mid-size company, I would tell you to allow a minimum of five to six weeks to go live—and here’s why. Not only do you need to transfer current and historical financial data over, but you will also need time to set up the program correctly.  For example, customizing settings and options, or determining precise cost codes, earn codes or units of measure upfront, will result in time-saving efficiencies for users down the road. 

Unfortunately, Scott, the key to successful implementation has much more to do with the planning stage than implementation. Before purchasing an accounting system for construction, you really need to determine such things as:    

• “How do we want to job cost?”
• “What types of reports do we need to produce?”
• “What problems are we having now with payroll, billings or even data entry?”

During this phase, contractors can take their time to talk with software vendors, compare systems and make priorities.

After selecting a best-fit software product, contractors should ask for an initial planning meeting to ensure that training and implementation goes well. In addition to a timetable for implementation, you will want to discuss user needs and wants, individuals’ responsibilities, as well as training and system expectations. In addition, after training has been completed, I would ask your vendor for a follow-up meeting to wrap up any loose ends or problems you may be experiencing. This is the time to go over each item on your implementation plan and make sure they have met all goals to your satisfaction.  

Construction Business Owner, November 2007