Liberty Professional Services, LLC


Liberty Professional Services, LLC

August 1, 2002

The "Real Cost" of Software


I recently attended a regular monthly meeting of the Madison Area Business Consultants, of which I am a member. It was interesting to hear some of the things the featured speaker was saying.

He was talking about the evolution of computer hardware and software. He explained how software is very costly to produce, but since they can sell millions of copies, it is priced very low. He then went on to say that the true cost of software for a small business user is the time and effort needed to learn the program, install it and set it up correctly, and get beyond the learning curve to where you are productive.

The part I found interesting was that he used Quickbooks as one of his examples. I have said for many years that the key to Quickbooks is to set it up correctly. Without that, you just end up with a page full of numbers. None of it is very helpful, and some of it is just plain wrong. The person who takes the time to set it up correctly and learn the secrets to data entry and reports will get so much more out of their time. If you are willing to do the extra work up front, your time spent each month will be reduced and the output will be much better.

Better results. Less time doing data entry. All for the price of a few hours of training and expertise. That is what the speaker was trying to say. The true cost of that software was not the $200 at Office Depot. It was your time spent learning and the cost of some professional help, if needed. But that cost is small compared to the return on investment in later years.

Construction people and heavy equipment operators do a lot of studying before they work with new tools. Office staff people are sent to seminars to learn how to use new equipment and software. Yet the small business owner just tries to cut the corner and start using things with little training. The reason most people give is that they just don’t have the time. Our speaker was trying to tell us all to make the time. It is well worth the effort.

As always, I am happy to answer any of your questions or help you in any way I can. Please call me or send me an email at your convenience.


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