Addons for small business accounting packages, as MYOB, Xero and Quickbooks, are now becoming increasingly popular to use by small business owners. They offer an efficient and effective way to improve profits and reduce costs. But there are quite literally thousands of addons in the marketplace. So where do you begin? As a management accountant with experience with the addon industry, BEWARE. There is a saying in sales…..

“Sell the sizzle, not the steak”

What this means is that you do not sell the customer the product, you sell the benefits the product offers the customer. For example, you may buy a shirt not because you need a shirt, but because you like the colour and design of the shirt. The salesperson will compliment you on how it looks on you. But many people have experience in buying their own clothes. How many small businesses have experience in buying accounting addons?

Experience adds value

For the inexperienced, knowing where to find the right addon can be difficult. But what can be of greater concern is being sold something that is not right for your business, or your business doesn’t even need.

The makers of addons are out to sell their product. For the unknowing buyer, this can mean being sold a product that is not everything the seller is promising. For example, I recently contacted an addon supplier to be given a demonstration of their product as part of an evaluation for a clients problem. In being given the demonstration, I asked questions of the product as “Where does it extract it’s data from? Does it work with these features of the accounting package? Will you be making improvements in these areas?”. These questions allowed me to identify the addon was not suitable for the client.

Salespeople SELL!

These are important questions many small business owners will not consider as part of the product. Instead, the salesperson will lead them through to the buy. Is it the responsibility of the salesperson to tell the business owner to ask these questions? NO! The role of the salesperson is to SELL the product, not to put up potential reasons for the business owner not to buy. The salesperson is responsible to answer your questions or find the answer when asked. But sometimes the sales pitch doesn’t tell the whole story, or tells you what you want to hear.

Don’t get burnt by the sizzle!

If you’re not experienced, it’s very easy  to buy an addon that is not right for you because you were sold by the salesperson. DON’T GET BURNT BY THE SIZZLE! There are some ‘consultants‘ that also offer to find or sell you addons for your accounting package. What is not disclosed is the consultant may receive an incentive or commission from the sale. So you may be told that it’s the right product for you, when in actual fact it is the commission that determines what product they direct you to. I am currently seeing LinkedIn and Facebook posts for a particular type of addon being pushed by consultants. A product I know pays a very good commission based on the marketing strategy of the supplier. There is nothing wrong with this. As business owners we can relate to having a business where you want to maximise sales.

Does Foley Business Management receive incentive’s or commissions?

Yes we may. But we disclose this as part of our engagement with the client. We also make it clear we are acting in their interests as our client and not in the interests of the suppliers or our own. In fact, we have probably gone beyond this by announcing to the world in this article we may receive incentives and commissions! But we value the trust in the relationship we have with our clients by assuring them our advice is based on what is in the interests of them and their business, not what we are paid by the supplier.

Why does Foley Business Management want you to know this?

Our purpose is to build sustainable communities and to create a better world for our childrens’ children. It is easy to be sold something that is not right for you and your business. It can potentially make a good business go bad very quickly. Knowing what is best for your business is the right thing for all involved.

This is why we take a holistic approach to our clients, not just preparing financial statements and leaving it to the client to work out on their own. We provide financial management solutions to small businesses, not for profits and social enterprise so they can make informed decisions. For many people, owning a business is a big step. One that will affect you, your family and your community.

If you would like to speak to one of our consultants for a free 30 minute consultation, please contact us to organise a time that is convenient. A business can be a rewarding experience for you, your family and your community! Let’s make sure you do it the right way.