Keys to choosing financial software

When choosing financial software, government officials face a myriad of products and must live with the results for seven to 10 years. That is a heavy burden, because the right financial software will enhance work flow and ultimately provide better service to taxpayers. Conversely, software that cannot evolve with a community’s changing needs is a disaster.

Today, financial software must offer more than an “automated paper trail” for accounting. To be effective, it must integrate with software systems from human resources and payroll to procurement and public works.

Steps can be taken to ensure effectiveness. First, evaluate how the software links the chief executive, finance, public works and other functions. Second, require a real-time, live demonstration of the software and look for these features:

* GASB and GAAFR compliance. How does the software support accounting, auditing and financial reporting requirements? Have any users won an award in financial reporting from the Government Finance Officers Association?

* Automated production of the Comprehensive Annual Financial Report (CAFR). The system should provide standardizedCAFR features automatically extracting original data from departments. Year end data should interface with the text and financial results for a well-formatted CAFR without manual manipulation.

* Precise measurement capabilities. Look for features that support service and accomplishments, so that government officials can demonstrate the quality, effectiveness and efficiency of services.

* Grant management and accounting support. Federal block grants require extensive tracking and reporting of funds and expenditures. Software should integrate easily with expenditure origin software.

* Integrated contract management. Software should manage documents, such as insurance, performance bonds and change orders in construction projects.

* Full integration and broad scope. Software should be broad enough to integrate with other operations, routing financial data automatically from its origin to a variety of different operations.

* User-defined work flow management support. Look for software that can be tailored to current and future procedures within and among departments.

After the demonstration, examine the software vendor’s role in the project’s success. It is critical that the vendor achieves goals on time and on budget and provides well-established procedures to support this effort. Understand the vendor’s approach to training, customization and enhancements. Ask about the corporate culture. Is it quality driven? A company that builds customer satisfaction into its employee compensation plan is on the right track.

Additionally, find out how other private-sector partners feel about this vendor. Refer to industry experts such as G2 Research, Meadow View, Calif., or the IBM Government Industry Solution Unit, Washington, D.C. Determine whether the vendor qualified for or received any certifications or awards such as ISO 9000 or the Malcolm Baldridge Award. These require measurable and documented success.

Finally, determine the vendor’s commitment to managing government information. How well do they know your business? If the vendor does not know the difference between a CAFR and a PAFR, it is safe to assume that the software does not either. Potential customers should look for a company that is visible in government associations and trade journals via feature articles, trade show participation, guest speakers and instructions.