new zealand accounting software 2010 tony gorham – polychrome limited

New Zealand Accounting Software 2010

Tony Gorham – Polychrome Limited

Agenda

About Tony

Who are the players in NZ accounting software?

What do these products do?- What are their strengths / weaknesses?

Where are they heading?

Why should someone buy each product?

When will they all play nicely together?

How to choose an accounting product

Copyright (c) 2010 Polychrome Limited – www.polychromenz.com/nzica.html

About Tony

Spent the last 21 years developing accounting and business software in the UK and now in NZ

Microsoft Certified Solutions Developer

Spent 6 years at Attaché Software, responsible for Attaché PRO – medium level product used by approx 1500 NZ businesses

Now runs Polychrome, a new company developing accounting integration and web solutions.- You can find these slides at www.polychromenz.com/nzica.html

Surveyed NZ based accounting products

http://www.polychromenz.com/nzica.html


Who are the players in NZ Accounting Software?

Xero

Quickbooks

MYOB Accounting

Small Business 1-5

MYOB Premier

Accredo

Advanced Business Manager

Attaché All In One

Attaché PRO

Infusion

MoneyWorks

Medium Business 6-49

MS Dynamics GP

MYOB EXO

Greentree

Oracle Financials

PRONTO

SAP

IRIS Exchequer

Larger business

Very crowded industry in NZ

http://sme-centre.massey.ac.nz/In New Zealand, our 350,000 or so SMEs make up more than 99% of all businesses and account for about 60% of employment. The SME sector broadly covers micro-enterprises (fewer than 5 staff), small enterprises (6-49) and medium enterprises (50-100).

• Not everyone I contacted responded. • I stuck to NZ based companies in the SME arena.• Accounting systems are not that easily mapped to number of staff – more number of operators

http://sme-centre.massey.ac.nz/



Small Business Medium Business Larger business

Coverage of systems

XeroQuickBooks

MYOB AccountingMYOB Premier


Attaché PROAttaché Accounts All In One

Money WorksAccredo

Infusion

MS DynamicsMYOB EXOGreentree

OraclePRONTO

SAP

IRIS Exchequer

3rd Party Apps

Lowering prices

• There are more products such as Sage, SAP B1 and Sybiz• Most of these are arguable up or down a bit



Small Business Medium Business Larger business

Coverage of systems

XeroQuickBooks

MYOB AccountingMYOB Premier


Attaché PROAttaché Accounts All In One

Money WorksAccredo

Infusion

MS DynamicsMYOB EXOGreentree

OraclePRONTO

SAP

IRIS Exchequer


Who are we talking about today?

- SME products but mostly those in the medium business space- Key point, most software is at best 90-95% fit- Many rely on third party developers and applications to offer a full suite - For example

- job costing, fixed assets, CRM, payroll, integration to MYOB acountants office, EDI

- Many have developer tools and training/support- Pros / Cons- Accounting software consultant is key to sucessful implementation


What do they do? – Micro Business

Feature *Xero *QuickBooks Pro

Banking

Invoicing

Payables

Fixed Assets

Multi-Currency

Web based

Financial Statements

GST

Micro/Small Business Packages

* From public sources


What do they do? Small to Medium Sized

Module Accredo ABMAttaché

Accounts

All In One

Attaché PRO Infusion

IRIS Excheque

r

Money Works MYOB

General Ledger Cashbook Stock Control Debtors Creditors Fixed Assets Job Costing Orders/ Invoicing Quotations Purchase Orders Data Importing Data Exporting Reports Design Serial Number Tracking WIP CRM PoS Web Store EXOForeign Currency Bill of Materials ODBC / OLEDB Scripting / Automation EDI EXO

Full module Partial availablity = third party solution available


What are your strengths / areas for improvement?

Vendor feedback

Strengths

Reporting, integration, automation, low cost of ownership.

Improvements

Inventory needs some work and addition of serial and batch tracking is in progress

Tony’s comments

Accredo has a very comprehensive integration model that really does allow implementors to round out any missing functionality.

Average costs are comparable to most other providers and they have a good network of support consultants and are very proactive with training.

Addition of SNT will complete the suite nicely.

Accredo


Where are you going?

Vendor feedback

Building on our existing client base and adding to existing suite.

Longer term goal to have complete suite offering database platform independence ISAM / MS SQL / Oracle etc.

Tony’s comments

Accredo has quietly gone about building a business based on their product rather than the next big thing. Time will tell if this is the best strategy.

This is a solid product but it runs the risk of being surpassed in the industry as it is rarely in the spotlight. Whether this actually impacts on them is another thing altogether.

Accredo



Vendor feedback

Strengths

Ability to customise, with 3rd party programs able to integrate to both the database and at the application level to create a seamless interface. Also, a clear focus on user interface, ease of use and audit trail.

Improvements

ABM has a clear focus on continual improvement in all areas. Job Costing is receiving particular attention in 2010 with new functionality being added to improve productivity of users and depth of analysis.

Tony’s comments

I really enjoyed talking to ABM. I have been to them for support in the past couple of months. I was a complete stranger to them and the product, they were great at helping me solve my issues.

Technically, this product has a really good infrastructure and it can be made to do most things.

More importantly, here is a company I suspect I would enjoy doing business with.




Vendor feedback

Moving more and more of the business logic into seperated web services.

Developing our own integrated CRM.

Tony’s comments

This product is already very accesible and with the planned developments it will be able to work both locally and online.

This will be a very clear industry trend for this section of the market and ABM are getting in early.




Vendor feedback

Strengths

It's a complete system with strong control of debtors and stock, embedded business intelligence tools & CRM, remote access and an integrated payroll solution.

Improvements

Constantly being improved with more than 100 client requested features added every year.

Tony’s comments

Attaché has an interesting business. It sells on a rental basis and that makes it a good choice from a cashflow perspective.

For smaller businesses it ticks all the boxes but the underlying structure is showing its age.

Whilst ticking many of the boxes it doesn’t go the distance in some areas such as FC.

This is an Australian product with good local support and a local office.

Having worked for Attaché for 6 years means that I have a soft spot for them.

Attaché Accounts All In One



Vendor feedback

Continuing to add features based on user feedback.

Constantly being improved with more than 100 client requested features added every year.

Tony’s comments

Unfortunately, due to time constraints I couldn’t get more detail of their future strategy.

Attaché Accounts All In One



Vendor feedback

Strengths

Strong in stock management and bill of materials, full foreign currency support for export & import companies, data integration.

Improvements

The areas which we don't specifically cater for, such as CRM, serial numbers, POS and business intelligence tools.

Tony’s comments

Attaché’s second product has some good integration options but could do more.

Whilst having fewer modules, it is a much fuller product on a feature by feature comparison.

It still has some missing modules such as serial number tracking, that will put off some business types.

This product is developed here in Auckland but is owned by an Australian company.

I ran the development for six years so obviously I love this product but it won’t suit every business.

Attaché PRO



Vendor feedback

Continuing to add new modules and features based on user feedback.

We aim to have two new releases each year. One which includes a new module, and one which includes enhancements to the existing software.

Tony’s comments

Unfortunately, due to time constraints I couldn’t get more detail on where they are heading.

Attaché PRO



Vendor feedback

Strengths

Our Software is designed for the general SME Market, giving the user the ability to customise the software to suit their own business- the major strength is the support provided by our company, and our Certified Partners Across NZ, No matter how good our software is - quality support is critical to ensure that the client is set up correctly and provided with a high level of ongoing qualified support and assistance

Improvements

Adding FX to our new development, which has been underway for two years, due for release in 2011

Tony’s comments

Infusion seem very good to deal with. I have been to them for technical advice and they have always been great.

Whilst I haven’t seen it, their web solution is based on a sound strategy and (osCommerce and server application) and it loads orders back into OE – which surprisingly, most don’t seem to do.

Infusion suffer form being a smaller player in the market but 1800 users mean they are a safe bet and their size has its advantages also, no corporate structure makes them reactive and nimble.

Infusion



Vendor feedback

Adding FX as part of roll out of new dot net version of the suite.

Won contract for 84 Stihl shops across NZ.

Tony’s comments

Moving to dot net means that the product has good longer term prospects.

Many accounting systems in NZ are developed in older tools which may be great but it is getting harder and harder to find the developers.

Infusion



Vendor feedback

Strengths

Comprehensive Project, Job & Time Costing. Fully integrated stock control. True multi-currency throughout. Ability to link to third party packages using multiple solutions. Serial and batch number tracking. Fully flexible to suit a wide range of industries. Able to grow with your business. Low total cost of ownership.

Improvements

IRIS invests considerable resources in R&D ($45m in 2009) and is continually developing and refining new modules to expand our offerings and to take advantage of emerging technologies.

Tony’s comments

Everything but the kitchen sink. Rather sadly the pricing is very complex and I gave up trying to establish a price for a typical 5 user system with core ledgers, stock and invoicing. They just couldn’t tell me what their pricing is.

A UK product that probably has a lot to offer. It is at the very front of XML EDI and other web based technologies.

However, I got the impression that they are not a very open company that sticks firmly to the corporate script.

IRIS Exchequer



Vendor feedback

In a nutshell - cloud based solutions.

Tony’s comments

I can see some merits in Cloud based solutions but they aren’t necessarily shared by IRIS. I understand the need to stay current and where the popular mind set is but it can often lead off on a dead end.

To me the benefits of moving to the cloud are in the opportunity to move to a more open structure that more easily enables data exchange – it is however, equally possible to move to the cloud and miss the opportunity.

IRIS Exchequer



Vendor feedback

Strengths

Upwardly compatible family of products from SOHO to 30+ concurrent users (one consistent UI and DB).

Cross platform Windows and Mac

Transaction centric, easy to get info out, APIs for external app, easy to use and excellent documentation

Improvements

Navigation UI getting old and being worked on for next version.

Tony’s comments

Only cross platform product I saw, this is a real plus in some industries like design and media companies as well as education. Though the Mac has made real in-roads into other business types and Cognito have seen that it isn’t always who you expect to have a Mac.

Nice set of COM interfaces should make it easy to talk to, so third party applications are available and growing.

They have a large client base 15,000+ in NZ.

Grant is a very passionate MD who understands technology and is using it to drive the company.

MoneyWorks



Vendor feedback

iPhone app on the way for road based sales functions such as account query and simple order taking.

Seeing more SaaS via hosted application options.

Tony’s comments

I had a real connection with Cognito, here is a company that is run by a man who understands the software he is selling, I like that in a company.

MoneyWorks is not as well known as many of the other products but its definately worth looking at. It’s cheap too, maybe they don’t realise their full value.

MoneyWorks



Vendor feedback

Strengths MYOB offers a broad range of accounting and business

solutions designed for businesses from sole traders to larger enterprises. With more than 100 solutions, we recognise that not all businesses are the same and so we have a range of services and products to meet different business needs. With more than 80% market share with both SMEs and Accountants, MYOB accounting solutions have set the standard for over 10 years in NZ. In the words of one of our smaller competitiors " For the last 10 years MYOB has been the gold standard. Accountants, Bookkeepers, Trainers, Consultants and small business owners have built businesses over their tools". We know that people do business with people and so we have a nationwide network of more than 2500 Approved Partners to ensure any NZ business can get face-to-face support where and when they need it. With an annual R&D budget of $NZ30 million in Australia and NZ, our clients trust our financial stability, our commitment to innovation and that we're about providing them with choice.

Our approach is that as a greater range of options are presented by cloud computing and online or remote solutions, as well as advances in desktop capability and features, that rather than try and constrain businesses to a single method of operation, we should provide them with the freedom to work how they want.

Tony’s comments

Slightly disappointing as MYOB responded as a range of products. It was probably fair given time constraints but it’s hard to split out a clear argument as we are essentially answering with three products. While most answers are good they don’t all come from the same product.

The existing product is old and tired and creaking in places. The underlying design is really showing it’s age – but wait...

MYOB SME Product Range



Vendor feedback

With an annual R&D investment of NZD$30million we're constantly looking to innovate and enhance our solutions.

In April 2010, MYOB will launch a new, range of SME solutions with an improved user interface, dashboard reporting and auto-updates. Further innovations will see our the next generation of our "SaaS" Online Accounting solutions released in Q2, 2010, which will allow kiwi businesses to connect with over 150 banks and financial institutions in NZ and Australia in real-time to enhance invoicing, payments, cashflow reporting and forecasting.

A further element of our enhancement strategy is to improve the collaboration and communication between the Accountant and the business owner and we'll be introducing new professional accountant solutions in the

next 6 months to support this initiative.

Tony’s comments

MYOB are looking to really upset the apple cart this year. A whole new technical infrastructure combined with focus on moving suitable areas of the product online could mean that MYOB blow everything else out of the water.

MYOB have the size and the money to pull this off but history would suggest that they might not get it right technically. I for one am hoping that they do, it will really redefine what we think about accounting software and that will be good for everyone.

MYOB SME Product Range


Why should someone buy Xero?

Share data with your accountant

Xero is leading the way in many areas. The ability to let your accountant have access to your data is an obvious plus point.

However, much needs to change before we can rely on the internet for mission critical functions required by larger companies. It’s hard to do stock control when the internet fails...


Why should someone buy Accredo?

Great integration and scripting

Kevin says

“We are a friendly, helpful, accessible company. We back you up, we look after you and we give a damn about our customers. We have the ability to change with your business.”

I think he is probably telling the truth.


Why should someone buy ABM?

Fully featured and grows with you

I think ABM have solid roots. No product fits 100% and at the moment they are one of the better products for filling any gap in required functionality.

These guys know how to help, I was genuinely impressed with their attitude.


Why should someone buy Attaché Accounts All in One?

Strong heritage

• Been around for 30+ years

• NZ and Australian offices and consultant networks, so if you trade in both countries you have local support.

• 6 Months money back guarantee

• No upfront cost, monthly rental


Why should someone buy Attaché PRO?

Feature rich product

• Detailed implementation of every feature.

• Consultant network for local support

• 6 Months money back guarantee

• No upfront cost, monthly rental


Why should someone buy Infusion?

Feature rich product

• Flexible design and easy to use

• Support 7am – 7pm – 7days a week!

• 80+ partners in NZ

• Link to Accountants Office


Why should someone buy IRIS Exchequer?

It’s got the lot

• If you buy from the tick list then this has it all

• If you trade electronically, this has full EDI

• IRIS Exchequer clearly achieves ‘best in class’ among what we would call its direct competition.

Institute of Chartered Accountants in England and Wales (ICAEW)

• Lots of existing verticle market apps to choose from


Why should someone buy MoneyWorks?

Cross platform, inovative design

• Windows and Mac on the same network

• Clever integration options

• Seem like nice people – which is often undervalued by many people.


Why should someone buy MYOB?

Popular products

• Easy access to staff who know the software

• Accountants versions

• Products for small, medium and larger businesses

• Good bang for you buck

• New versions April 2010 - promise to be the next big thing


When will they all play together nicely?

Business has been trying to make EDI work since the 60s

Sending transactions electronically makes sense and reduces costs

EDI The holy grail?

Xero leading way in the shift to online accounting

Why is this important

Common infrastructure and data formats

Fibre to the door is coming – game changer

Changes already happening

Part of the problem is that in order to sell products, we need to add features that seperate us from our competitors.

These differences are what stop accounting software systems from talking to each other.

USP – Good or Bad?

Is there any hope of this getting any easier?

How to pick an accounting product

There are too many choices in NZ and nobody knows all of them well

It’s all about the consultant – find someone you can work with

Look for 90% fit but remember most will cover this

Can it be extended? If not, then what about the other 10%?

Don’t let old software hold you back- Recognise when it is time to move on

Identify your business type and pick a product that is strong in that area

Speak to other people – don’t just get what a friend has, especially if they don’t have the same type of business as you

Thank you for your time

new zealand accounting software 2010 tony gorham – polychrome limited

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