Australian Companies: Moving Past MYOB
On a daily basis, I have the opportunity to work with WA’s brightest companies to determine the different business software solutions they will leverage to ensure their success. With the downturn in the mining industry, many of these companies are looking to improve, evolve and operate as lean as possible. And so the question arises; why do these companies, directors, general managers, and CFOs start looking to invest in more robust software solutions to streamline different aspects of their business?
A staggering number of small and intermediate sized organisations choose solutions such as MYOB, Xero, and QuickBooks to manage the finances of their developing companies. However, it’s well known in today’s business community, the ability to manage their entire firm, as well as streamline business operations, means additional functionality outside of an accounting package. The following points are the most common drivers I hear from my prospects as the reason for going to market for a more robust software solution.
- Growth – Even in enterprise additions, scaled back software vendors have a limitation to the number of user licences, which can hinder growth of an expanding company. This limitation creates diseconomies of scale within the work place. Employees who need quick and role based information are forced to go without or work around the availability.
- Inflexibility – The strategy to move to a solution that allows an organization to capitalize on their core competencies is the most common driver to evaluate software options. Global competitors are using robust and integrated software to automate and track their quote to cash process. The seamless flow of information eliminates the manual process of chasing down data, re-keying, and hiring additional AP/AR admin when revenue fluctuates.
Over the shelf or basic accounting packages not only lack this complete view of the business, but require their users to operate within the functionality that is offered, leaving vital operations to manual processes, which mitigates the ROI.
- Multi-Currency Concern – International trade is the backbone of the Australian economy. Nearly $670 Billion was credited to Australia’s two way trade in 2014. Growing companies understand that many basic software providers, have inadequate foreign currency capabilities. If competitive companies are spending resources tracking foreign dealings in separate spreadsheets or files; they look for multi-currency functionality that is standard and automated in another solution.
- Responsiveness and Insight – Data that is only linked to financials, leaves decision makers with an obstructed view of their organisation. The holistic view that is required for leaders to make decisions based on sales, operations, and real time job costing is a necessity that is not delivered in an ‘off-the-shelf’ accounting solution.
- Lack of industry expertise – Many of the book keeping solutions have alliances with additional third party solution providers in the services, manufacturing, and distribution industries in an attempt to remain relevant. However, these integrations rarely do more than scratch the surface regarding the functionality needed to compete on a global scale. Developing companies are looking for industry partners as well as solutions with rich functionality that creates a competitive advantage.
One topic you didn’t see in my blog is the cost of these solutions. There is no doubt that solutions such as MYOB, QuickBooks, Xero, ect. are affordable; especially for infant companies. Organisations aren’t moving to integrated ERP solutions to save a buck, they’re taking action to secure their future in the marketplace.
ABOUT THE AUTHOR:
Presales Solutions Consultant at Precise Business Solutions
Dan Collar has been working with ERP Solutions and how they’re applied to manufacturing, distribution and service organisations since 2012. He has been instrumental in communicating and presenting the value and competitive advantage of different business solutions for a wide array of industries. Starting with a leading ERP vendor in the United States, Dan has recently transitioned to Perth given the area’s similar focus around engineering, fabrication, and service providers to oil & gas, mining, and infrastructure industries.
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