- Prepare a robust set of business requirements that the technology solution needs to address.
- Actively engage key stakeholders who understand the requirements in the vendor selection process.
- Run sample scenarios through the technology and assess the output for completeness and accuracy of both journal entries and results.
- Confirm management’s understanding of internal controls reports, such as Service Organization Control (SOC) reports, available from the technology vendor.
- Always consult your independent legal, accounting, and other professional advisors prior to taking any action whatsoever.
- Choosing the correct software is a process that includes researching the software provider itself. It is important to be confident in both the entity and the application. Will they remain in business? Do they constantly improve their application? How is their support? Have they withstood the test of time, public companies, and IRS audits? These questions are crucial in understanding the software provider’s level of service and longevity when it comes to maintaining your livelihood.