Fixed Asset Accounting Software Evaluation: A Structured Methodology For The Mid-Market Firm

Abstract

Packaged software evaluation represents a major decision for business.  It involves a number of quantitative as well as qualitative attributes in choosing among system alternatives.  This paper illustrates an evaluation methodology for accounting software selection, specifically a fixed asset system.  The methodology incorporates three stages:  1) software screening; 2) detail package evaluation; and, 3) confirmation and design (also known as a test drive). 

Initially, developing a short list through screening of accounting software determines whether an appropriate package exists and narrows the field of available fixed asset products for detailed consideration.  The second stage determines which of the remaining fixed asset systems (the finalists) best meets the needs of the organization, from both functional and technical perspectives. The final stage, or phase, compares user requirements with the features of the selected fixed asset software by determining how these requirements will be satisfied by specific applications built using the fixed asset software.  

The methodology also controls for the possibility that no fixed asset software product is suitable and that such a system must be constructed on a custom basis. No other reported evaluation and selection approach offers this device.  A case example demonstrating the applicability of the suggested methodology is given for a mid-sized hospital organization representing the largest market segment for accounting software.