Buying accounting software for your company should not be a solo effort. The success of an accounting software implementation may depend as much on your choice of an independent local dealer or VAR as it does on the software vendor.

"The VAR is a partner," says Dan Lubin, VP of IS for The Folio Group, a Worcester, Mass., manufacturer of trade show booths. The company is using accounting software from Great Plains Software Inc., which it obtained through the reseller ManagedOps.com.

"The key to successful implementation isnīt just purchasing good software," he says. "The key is integration [with your existing systems and business processes]. We look for formalized installation and integration from the VAR; we look at the strength of the VAR, as well as the strength of the application software itself."

Anyone Know a Good Tailor?Accounting software is designed to work with a wide variety of industries. However, each business has its own nuances, such as its own purchase order approval process, its own credit approval process, and a variety of forms. The VAR is expected to be an expert on the accounting package, and can make the necessary modifications to make it conform to the particular practices of your business.

The customerīs relationship with the VAR can get very close, according to Charles Chewning, president of Solutions, a Richmond, Virginia-based consultant on selecting an accounting software package. "I want the VAR to know everything about me, first and foremost-They should be interested in me and my problems, rather than just trying to sell me a box."

Specific custom features for your company are often necessary because businesses can differ so much in terms complexity. And donīt go by size alone. In fact, small-or medium-sized businesses can be even more complex than large ones at times because limited manpower often requires that employees wear many hats.

Even if a package has a specifically needed feature, there may still be limitations that preclude its use for some companies. "For example, I looked at a package that had 99 categories for sales-tax reporting," says Professor Harley Courtney of the University of Texas at Arlington. "For a lot of firms that would be quite adequate, but for a mail-order firm, that limitation would be a big problem--because they have to deal with thousands of categories."

In fact, sometimes fairly substantial modifications are required.

Thatīs what Rosco Laboratories Inc. of Stamford, Conn., had to deal with when it selected Navision software from NavisionDamgaard US late in 1998. Since Rosco is an international business, they selected Navision because of its multinational features. They also preferred Navision because, unlike other midrange accounting software vendors, it doesnīt use independent VARs, but instead uses company-owned "solution centers" for installation and support.

"You know how your business operates, and they want to tailor the software to your needs," says controller Vincent Cavaliere. "Itīs hazy at first how to do it exactly, and the solution center is there to guide you."

He indicates that itīs a cyclic process. "You say that you want the software to satisfy this need, and they make the changes based on what you give them," he says. "Itīs give and take along the way. Iīve learned from experience that the solution centers make the changes, then you have to come back and say that it isnīt exactly the way you want it."

Invasive SurgeryHowever, thereīs a drawback to certain kinds of alterations: If the core accounting software modules are modified to meet the needs of the customer, then the customer is unable to use new versions of the software without making the custom changes once more to the new version.

Because some of the changes required to modify the core modules, Rosco has avoided implementing any upgrades to Navision, according to Cavaliere. "The version weīre currently using is meeting our needs, so untill we complete the customization, we wonīt do an upgrade."

However, not all accounting software customization requires changes to the core modules. All but the lowest-cost packages (those under $3,000 or so) provide some sort of capability to make modifications to systems that are outside the core modules, so that the modifications will work without further programming, when the accounting software itself is updated.

Safe AlterationsIf youīre planning to purchase and customize accounting software, here are some guidelines to the kinds of changes you can make without affecting the core modules:

Most packages provide a method for redesigning screen forms, even adding a limited number of new fields to accommodate the business. For example, you could add a special 4-digit "product type" field stored with each line item on a purchase order. Generally, many packages store with each general ledger transaction a 10-digit, 20-digit, or longer transaction code, and the software permits you to break that code up into segments. For example, you might break the transaction code up into 5-digit segments representing department number, product type, or other business-specific encodings. Some packages provide a "workflow" function for companies that have special approval processes. For example, you can specify that a purchase order over $10,000 must be approved by two vice presidents, and the workflow software will enforce that requirement. Many packages provide for a method to write code, usually in a programming language like Microsoftīs Visual Basic. In many cases itīs possible to write programs which "add on" to the functionality of the accounting software without actually modifying the productīs core modules. Every package contains a report writer that lets you design a wide variety of customized reports. According to Folioīs Lubin, "Itīs important to have a VAR that can customize the software if thatīs necessary, but a lot of companies will take the custom route far too quickly, and you end up with something more costly, and sometimes less reliable," he says. "You make a modification, it gives you a 2% increase in efficiency, you have to back out and replicate your changes in the software for every upgrade. So weīll go to that kind of customization only if absolutely necessary."

Five Rules for Selecting a Value Added Reseller (VAR)Most accounting software vendors will refer you to a VAR in your local area. Here are some guidelines for selecting a VAR:

(1) Select a VAR who wants to know about you and your problems, rather than just trying to sell you a box. Select someone who acts more like a consultant than a reseller.

(2) Select a VAR with business experience, so that he