IT Start-Up Guidance

Extra Considerations
Getting Help
Accounting as the First "Application" to be Undertaken
Specific Line-of-Business Applications

It took 13 years for television to reach the level of market penetration achieved by the personal computer in just four years.  Now 96 per cent of all small to medium sized enterprises use computers and 90 per cent have access to the Internet (Yellow Pages E-Business Report: July, 2006).

Extra Considerations

On the introduction page, you discovered the things to consider when purchasing new hardware.  There are software choices you’ll need to make also - depending on your business processes (such as accounting or inventory control).

Software to consider:

• Antivirus - see our Security and Protection section
• Accounting - ask your accountant for advice
• Inventory control - can often be included in accounting software
• Customer Relationship Management (CRM)
• Industry-specific software, such as hospitality, hotel, manufacturing (see Specific Line of Business Software below)

Better Business Tip Get organised and investigate personal digital assistants (PDAs) - another word for electronic organisers and address books.  They can be a fantastic timesaver.  They integrate with popular computer diary and address book software, so you can go on the road, enter new meetings and phone numbers, then go back to work and at the touch of a button synchronise with your computer. Convergent devices (smart phones) take this a step further, giving telephone and internet access in addition to the calendar and contact list.

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Getting Help

Assistance is readily available from advisors such as your company's accountant, specialist freelance consultants or IT hardware/software vendors.  Ask your industry trade association for advice also.  And the internet is an endless source of valuable advice.

Recruiting a freelance consultant for a project needs to be a flexible procedure.  Develop a brief to send to potential consultants asking for their costed proposal for undertaking the project.

Topics for consultant brief:

• The client's overall objective for the assignment and the criteria to be used to select the consultant.
• Scope of the assignment and the desired outcomes (eg to create a strategy, a detailed plan;  to develop software for your business, or implement a packaged system;  to create system elements, or a complete turnkey outcome).
• Definition of the stages of the project and the review process at each checkpoint.  Nominate the start date, review dates and the completion date.
• Define the expected project "deliverables", such as reports, software programs being purchased, customised or written, hardware, staff training, installation services, etc.  This should include the ownership outcomes of documentation, software and, in the case of custom software, ownership or access to the source code.
• How the deliverables and outputs of the project will be measured or evaluated to determine the success of the project.

In response, the consultant’s proposal should include a description of:

• relevant expertise and experience of the consultant, including that of the staff working on the project;
• description of their proposed solution, listing of required hardware and software - and generally how the solution offered meets the specific criteria set out in the client brief;
• fee and payment arrangements, workers compensation and professional liability insurance details - and other contractual matters, including confidentiality, copyright and intellectual property assertions;
• most importantly, the proposal should reference previous successful similar assignments that have been undertaken and should include reference contacts so that previous work standards can be verified.

This proposal should be assessed by the client company on the basis of the quality of the proposal, the degree to which the proposal addresses the brief and, most importantly, value for money.

For the larger projects, or where a company already has an investment in IT systems, a consultant may first undertake a systems and technology review.  This is designed to examine and report on a company's present use of technology and electronic commerce - and to identify and recommend areas that would benefit from development and further investment.

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Accounting as the First "Application" to be Undertaken

In its broadest sense, "accounting" is the most frequently cited applications area for IT systems.  A computer-based accounting system is virtually mandatory for all businesses that fall within the ambit of the Goods and Services Tax (GST).

The simplest cashbook software can be used by the very small company faced with a first-time conversion to a computer-based system.  The Australian Taxation Office has made such a facility available from its website at www.ato.gov.au.  Many accounting firms are now specifying cashbook preparation in an electronic form as a prerequisite to providing accounting services to their clients.

Most small and medium enterprises (SMEs) will identify invoicing and debtors, accounts payable, cash reconciliation and general ledger as key applications, but other major functions such as inventory, asset registers and payroll are also common requirements.  Standard packaged accounting software, available at major computer shops, can provide many of these functions.  These products are relatively inexpensive and well supported by vendors and consultants offering installation, training and enhancement advice.  Buyers should determine whether their software application needs to be Web-enabled, to allow the electronic production of invoices.  Accounting software products suitable for small and medium sized businesses, including versions specifically for retailers, can be sourced from MYOB, Pastel, Quicken, SAGE and many other vendors.

Accountants say clients must computerise The introduction of the GST meant a new working relationship between accountants and their small business clients.  With the more regular reporting requirements of the new tax system, the old procedure of the accountant undertaking the bookkeeping task for their clients, from the paper records submitted each year, is no longer practical. One Sydney accounting firm told clients that they will only accept client data in electronic form.  They have signed a reseller agreement for one of the major accounting software packages and are providing their clients with this at a reduced cost.  Their clients now prepare their own cashbook data and pro-forma accounts and submit these "electronically" to their accountant each quarter. As a result, the accountant is able to provide both a better level of service to its clients and, by avoiding paperwork problems, can concentrate on delivering an enhanced level of management accounting, information and advice. (Equipment required:  personal computer, operating system and Internet software, accounting program package, printer and modem - total cost under $2,500, available from most major department stores and specialist retailers.  Most offer attractive leasing terms to reduce the cashflow impact of hardware and software acquisition.)

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Specific Line-of-Business Applications

Of particular attraction for small companies is the availability of business-specific software suites designed specifically for a particular industry.

Examples of such systems can be found in hotels and accommodation businesses, medical practices, motor trading, law firms, real estate and stock agents, farmers and agri-business, insurance, retailers, transport companies - and a host of others.

Much of this software can be customised at a fee to match specific requirements.

 

Better Business Tip Try to learn at least one new computer shortcut a week.  At the end of the year 52 shortcuts will make a huge difference to your business. Right clicking on anything with your mouse will turn up some great new shortcuts.

 

Better Business Tip If you're finding that glitches with your computer hardware or software are eating into the productivity of your day, engage a support firm. Often they can set up "remote access", meaning they can access your computer (with your permission each time) from wherever they are and fix it remotely. A flat monthly fee is a reasonable way to cope with time-wasting IT issues.

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