Top Five Differences
Hardware versus Software
Cost Accounting Systems
Management always precedes technology. Only after deciding to embark on a new strategy should you explore which technology tools, if any, can help you attain your strategic goals.
Once you decide to track and recapture costs, you will need to acquire a government accounting software solutions that performs the task. There are two options that exist: Hardware or Software. Whichever one you choose it should have these characteristics:
- A cost accounting system that offers an immediate return on investment is critical. Delayed cost recapture hurts your bottom line.
- A cost recovery system that seamlessly integrates with your firm's workflow enables you and your colleagues to spend more time generating fees.
Capital Investment and Ongoing Overhead
Before you can begin using a hardware cost accounting system, you maybe required to purchase or lease the proprietary vendor terminals and other equipment, which may cost many thousands of dollars. Also, this fee does not include installation on your printer or copier, and recurring license fees for the embedded software, which would add additional costs.
By contrast, Lex Systems' government software solutions for cost accounting operate on equipment you may already have in service. That reduces the installation costs of Lex Systems software systems. The systems are less expensive because the software license does not have hidden charges. In most instances design, customization, installation, and cabling are included in a single, annual license fee based on usage. This arrangement means you do not pay Lex Systems until your system actually starts tracking and recouping costs.
Keep in mind the difference between your costs and the price for the job you are doing for your customer. If your system can charge different customers different amounts according to the agreement with that customer and the nature of each job and the customer's usage, that characteristic will help you maintain good relations with each customer.
Hardware solutions force you to create a set price for each phone call, print, copy, and fax no matter the client or the number of impressions in a print or copy job. You can't adjust the price based on particular criteria; you can only raise or lower the price uniformly charged for that expense. If you want to change a recorded price you must manually enter such changes in your billing system, thus decreasing the benefits you can receive from your system.
You can configure The Counts' government accounting software into many variables that fit your many differing requirements. Its "Unique Pricing" tables enable you to specify different prices that vary case-by-case allocations for expenses to conform to your agreement with each customer.
Billing Software and Office Equipment
With a hardware cost accounting system, prepare to be locked in to a five-year license agreement. If you want to upgrade your firm's billing system, office equipment, or even cost accounting terminals at any time during the five years, you will have additional costs.
A commitment to Lex for a government software solution requires only an annual license .The annual fee includes the costs of any future upgrades or changes, enabling you to implement the technology you need to run your practice efficiently.
Support and Training
Purchasing equipment for your hardware cost accounting system isn't just an upfront expense. Hardware solutions impact your choice of copier, printer, phone, and fax machine. There is always a need to re-train your staff when the hardware changes. When a proprietary terminal requires maintenance, use of the equipment it controls (and tracking its usage) comes to a halt until the vendor's technicians can arrive and service it.
A Lex Systems government software solution for cost accounting packages requires less training, and it works in the background. Since the software system operates on your network, the vendor can service the program remotely, which minimizes downtime.
Network Complexity and Management
The Count systems for government accounting software are integrated with your other management systems so that your cost accounting system immediately validates information it receives against the latest information in your primary systems.
Tracking expenses with an automated cost accounting system can significantly boost profits. Hardware systems make the same result more difficult to achieve because they involve significant upfront expenditures and other hidden costs that could reduce productivity. A Lex software package for government approved accounting systems is customized and does not require a sizeable investment before you recoup expenses. Pay-for-click software offers an alternative to hardware, and is a formidable competitor in the cost accounting system market.
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