Accounting Software Vendors and VARS

There are several hundred accounting vendors in total, but only a dozen or so major "name brands' that most prospective purchasers recognize.  Today, almost any of the major brands of accounting software can be adapted to address the needs of the majority of SMBs.  However, someone has to be able to make that adaptation work successfully, both technically and within the human framework of an organization.

Many buyers have the mental model of car buying in mind when considering accounting software.  There is the vendor (brand or manufacturer) and there is the dealership where they actually purchase the car (software) and get it serviced or installed (VAR - value added reseller). 

But this model does not hold for accounting software for one simple reason:  Price aside, there is virtually no difference between the same car model delivered by different auto dealerships.  But the differences between what different software VARs can deliver with the same software can be staggeringly different.  That is because of differences in (or complete lack thereof) of:

  • Knowledge of the software and configuration issues
  • Training, implementation and support
  • Integration and customization skills
  • Level of commitment to your company
  • Understanding of BPR
  • Knowledge of your industry’s business practices and best practices
  • Understanding of change management
  • Expertise in performing requirements analysis

The foregoing can really be summarized into 3 areas:

  • How technologically savvy are the VARs?
  • How good are the VARs as a business consultant?
  • How committed are the VARs to providing a defined level of service?

And to take these questions to the ultimate level:

  • Are the VARS  just  “suppliers,” or can they be a strategic business partner?
  • And are you prepared to accept them as a strategic business partner?

The cost components of what the VAR supplies often exceed both the cost and the value of the actual software.  In other words, you may well invest more with the VAR for service (if you are smart) than you will for the software.  So it stands to reason that you should put more effort into selecting the VAR than into selecting the software, especially as there is likely to be more variability between VARs than there is between software brands.

With our detailed review and ratings, CTS can  help you learn enough about the accounting software and vendor to ask the VAR the right questions.  Learn through our reviews how to select the right vendor and the right VAR  with our Accounting Software Selection Kit.

Download Accounting Software Selection Kit