Choosing the right business system for your company can be overwhelming, but it's crucial for your success.
Edward Fyvie, Tidy Partner, is a consultant who helps businesses assess and select the best system for their needs. Recently, due to changes in the Xero marketplace, he has been fielding more questions about evaluating and choosing a suitable system.
In this article, we will share his insights on how to select a business system from a consultant’s perspective.
Step 1: Identify Your Business Model
The first step in choosing a business system is to identify your business model. What type of business are you? Is your company a service, distribution, industrial fabrication and installation, manufacturing, or healthcare business? Depending on your business type, different systems will be suitable. For example, if you're in the service industry, billing professional services with no material items, Xero may be sufficient. On the other hand, if you are in the distribution industry, importing or locally sourcing items, and holding inventory for resale, you may need an inventory control add-on.
Step 2: Determine What Information You Need from the System
Once you have identified your business model, the next step is to determine what information you need from the system. You should consider the necessary, useful, and sufficient information needed to run your business. Avoid unnecessary complexity and only list what is essential. You should also consider whether the add-on communicates smoothly with Xero if it acts as a user-friendly front-end for Xero, if it provides operational information for daily use, and whether it can enable effective 2D management reporting to the P&L (Profit & Loss) level in Xero.
