| His software salesperson, a CPA, installed the software and transferred On the Level’s stand-alone software programs into the new integrated software database. Thompson spent about $11,000 for the software and installation. Unfortunately once installed, the software did not work as advertised. “Things were getting screwed up and going into the wrong accounts,” Thompson recalled. The new program kept producing incorrect financial statements. The software salesperson/installer tried several fixes but nothing seemed to work. Thompson had his bookkeeper take accounting classes, thinking the additional knowledge might help her rectify the problems. That didn’t help either. The Solution: Hire a Software Installer Who Knows the Industry The bookkeeper’s instructor, Gary Sabby, the president of Sauk Rapids, MN-based HeartLand Financial Strategies, a software and systems consulting firm with clients in the construction industry, thought the problem might be that the software had been installed incorrectly. Like the software salesman Thompson first worked with, Sabby is a CPA. But Sabby is also a builder who understands how builders run their businesses and what needs and software requirements they might have. He was brought in to troubleshoot the problem and it didn’t take him long to realize that his suspicions about the software installation were correct. The original installer “hadn’t sat down with the staff and asked them what they needed,” said Sabby. “That’s why none of the figures or other data seemed to balance.” He reconfigured the software to work with the NAHB Chart of Accounts and established a clear audit trail to show: - Where On the Level’s data had “lived” in its old stand-alone systems
- Where it appeared in the new software’s database (and how it got there)
- How one set of data impacted another (e.g., roofing take-off as part of an estimate; company assets increased by the purchase of a lot; etc.)
“You need an audit trail in case an accountant asks, ‘Where did this number come from?’ ” Sabby explained. The Payoff: All Systems Are Go — And Much More Accurate Reinstalling the integrated software package took about two weeks, but the program now works as intended. “Things are a lot more accurate, which is the whole reason why we bought the software in the first place,” Thompson said. One part of the software package that he has found particularly useful is the program’s trade contractor module. It alerts him if he starts to write a check to a trade contractor whose liability insurance has lapsed or agreement hasn’t been signed. Additionally, the builder can now compare construction budgets to his actual costs. “That lets us make a more money,” he said. By improving the accuracy of its financial data, On the Level was able to boost profits enough so that the software investment already has paid for itself. What You Can Do To better integrate business management software (or any kind of office automation) in your business: - Read NAHB’s series of Tech Talk articles, which explain how to use technology to improve your home building or remodeling business. Author and IT consultant Bill Allen stresses a “systems before software” approach that can keep you from jumping the gun and automating your operations before you are ready.
- Visit the Computer & Information Technology section of www.nahb.org/biztools to find out what other resources are available.
- Follow Thompson’s advice for evaluating integrated software packages:
- Make sure the people you are dealing with — those who sell and install the software — know the construction industry. “It is important that the software rep is knowledgeable about the software, but it is more important that he or she knows the building industry,” Thompson said.
- Talk to other builders that the salesperson and installer have worked with to find out what experiences they had. Ask if anything went wrong, and how the software company dealt with it.
- Make sure the software is a good fit for your company — and vice versa. Figure out your needs first; the software’s salesperson can help you with this. Shabby said that, at the very minimum, a good salesperson should be asking you:
- What do you want to change about the way your company does things?
- Why are you buying software?
- What do you want the software to do for you?
If the salesperson doesn’t ask about your company’s business needs and only gives you a sales pitch about the software’s capabilities and tells you a “standard” package will meet your needs, then look elsewhere. - Use the JLC Online Computer Solutions Discussion Forum link on NAHB’s Web site to research specific software packages. You can post a question online and get feedback from tech-savvy builders and remodelers.
Note: After registering to post messages, the best bet is to search for the software’s name on the forum’s existing discussion threads. Someone may have already posted — and answered — your question.
- Be sure to have you and your staff fully trained to use the new software. Most software companies provide training, sometimes on site. If the training is off-site, send everyone who will be using the new program to the training classes instead of relying on one or two of your employees to learn and train everyone else. They might forget a crucial step or two.
Have backup systems in place so you can continue operating until you and your staff become proficient using the new software. Have you or someone you know developed a smart solution about business managment or technolgy that will help the industry? If so, contact Jill Tunick at 800-368-5242 x8461 so we can share your solution. | 
