Having just got through a forced and unplanned re-install of the Operating System on my PC, it brings home to me the importance of having good backups of ALL the data required to get a PC back into a workable condition.
Taking backups of application data for a company should be standard practise, but what about all the other marginal elements that a user relies upon - are they being saved in any format. Here are a few of the things I am thinking about:-
- e-mail accounts, passwords and log-on details to e-mail servers
- e-mail folder structures
- e-mail anti-spam rules
- the e-mails themselves within the application
- web browser Favourites, cookies and passwords
- options and preferences for applications that don't hold databases etc.
- application installs taken from the web
- upgrades and new releases to applications
- registry entries
- file and folder listings
- etc.
Applications like Outlook, IE and RegEdit have built in Export/Import menu options to save/re-establish settings and user configurations. I strongly suggest that you start using them (if not already doing so) and putting the resulting exported files into a location that is backed up and archieved off of the PC.
When installing a new application or an upgrade, don't run the program from the web but save the file to a suitable folder (C:\Downloads\AppName) and include this folder is your backup/archieve.
Luckily I have been doing this, so recover went well - even so it took 2 days. The only problem I encountered was that I rely on a bit of software that MS no longer supports, thus one of the first upgrades/patches was no longer available from its website. Had to use Google to locate another source before being able to continue. Now I have added it to my backup data.
One of the things that helped the most during the recovery was a list of folders and their files. This I had started creating on a regular basis; for entirely different reasons; a couple of months back using VBScript and the File System Object. The list help me identify missing applications, folders, files and versions.
I strong recommend ensuring that if you encounter a major disk/PC problem you have the necessary information and backups to help recover from it with as little hasle as possible.
Remember, PCs are cheap when compared to the cost of re-establishing all the data they hold!
Discusses views from the UK both cultural and political. With a distinct interest in software.
24 December 2010
25 June 2010
Flexible systems
With yet another change in VAT Rate looming at the end of the year, the importance of using a flexible accounting/ERP system that allows for the creation of new VAT codes, rates, etc. is brought to the fore.
Many 'older' systems provide little support in making such changes and allowing 'old rate' invoices and be processed at the same time as 'new rate' invoices. With the consequence that considerable effort is required around the time of actual rate change. Invoices being either to customers or from suppliers.
At least this time around many firms will have faced the problem in recent times and should be able to cope without major costs/holdups.
Inflexible systems are those that have codes and rates 'hard coded' into the program so that version upgrades are needed to meet new requirements. Where as flexible systems allow users to create and maintain entries to control it. This not only concerns tax rates, it covers all aspects of program control.
Of course with more sophisticated systems, the day to day requirements placed upon users is increased, as they need to understand more about the system and the interaction between various settings. However, this drawback is more than compensated for by the ease of changing the system when required.
My recommendation is to always look for and install the most flexible system you can find. That way you can be independent of the software supplier and still be comfortable in being able to meet the requirements of changing legislation and the overall business environment.
Many 'older' systems provide little support in making such changes and allowing 'old rate' invoices and be processed at the same time as 'new rate' invoices. With the consequence that considerable effort is required around the time of actual rate change. Invoices being either to customers or from suppliers.
At least this time around many firms will have faced the problem in recent times and should be able to cope without major costs/holdups.
Inflexible systems are those that have codes and rates 'hard coded' into the program so that version upgrades are needed to meet new requirements. Where as flexible systems allow users to create and maintain entries to control it. This not only concerns tax rates, it covers all aspects of program control.
Of course with more sophisticated systems, the day to day requirements placed upon users is increased, as they need to understand more about the system and the interaction between various settings. However, this drawback is more than compensated for by the ease of changing the system when required.
My recommendation is to always look for and install the most flexible system you can find. That way you can be independent of the software supplier and still be comfortable in being able to meet the requirements of changing legislation and the overall business environment.
03 February 2010
Planning for not being here! Death in other words
A recent family loss has suddenly brought home to me that very few of us effectively plan for not being here!
Lets assume you are an average Joe - with a partner and 2.n kids, may be a parent is still alive.
Now suddenly you are gone! You've died.
Your family are in a state of shock, bewilderment and bereaved.
Hopefully you have left a will.
But that is only a start.
Your bank accounts and credit cards are frozen.
Pension receipts will be stopped! So in the near term, money will be short.
Cars are not legally useable - in the short term - as they are in your name along with the insurance - which has now become invalid.
Yet, at the same time large funeral bills need to be incurred. Along with lots of letters to be written to organisations that they've never had to deal with before.
Do they know or know how to get to - passwords, account numbers, pin numbers, memorable words, mail and email addresses, telephone numbers, etc.
Who to contact for pensions, life insurance, mortgages, investments, ISA's, PEP's, etc.
Do they have access to joint accounts and their details?
Things that up to now you have always looked after.
Stop and think for a minute of all the things to be done at such a time.
It does not take long to come up with a long list.
How can you plan for this? In in order to reduce its impact on your family.
Start with a basic list of bank account details - codes, numbers, addresses.
During the year, add investments and pension details, as dividends are received or premiums paid out.
Give directions/details of the normal physical locations of items like keys, statements, policies, deeds, certificates. Include every day things as well as those deeds you put in the bottom of the box 25 years ago and have not been opened since!
All this sounds fairly easy to do - and it is when done in advance - BY YOU!
If you have complex affairs - investments, mortgages, share holdings, trusts etc., give a brief description of how it all hangs together and inter-relates and why you have structured it the way it is. You may have saved thousands in a complex structure. But all the savings could be eliminated by high legal fees trying to sort out and understand the situation you have created.
In to-days world the best place to create and hold this information is on a computer with Word, Excel or similar. Yet will your family know which file and directory path to access to get to all this information. So store a printed copy in a location that all family members know about.
As accounts are closed or become redundant, don't remove them from the list but note them as closed/redundant and give the date. Remember, Inheritance tax can go back 7 years.
Still think your family could handle the situation that your sudden departure has created? It may not be nice to thing of dieing, but do you really want to leave a lot of problems for your loved ones?
Start building that list and if you have spare funds put some in joint/single bank accounts that your partner/loved ones can get to when you have gone in order to tide them through those first weeks.
Lets assume you are an average Joe - with a partner and 2.n kids, may be a parent is still alive.
Now suddenly you are gone! You've died.
Your family are in a state of shock, bewilderment and bereaved.
Hopefully you have left a will.
But that is only a start.
Your bank accounts and credit cards are frozen.
Pension receipts will be stopped! So in the near term, money will be short.
Cars are not legally useable - in the short term - as they are in your name along with the insurance - which has now become invalid.
Yet, at the same time large funeral bills need to be incurred. Along with lots of letters to be written to organisations that they've never had to deal with before.
Do they know or know how to get to - passwords, account numbers, pin numbers, memorable words, mail and email addresses, telephone numbers, etc.
Who to contact for pensions, life insurance, mortgages, investments, ISA's, PEP's, etc.
Do they have access to joint accounts and their details?
Things that up to now you have always looked after.
Stop and think for a minute of all the things to be done at such a time.
It does not take long to come up with a long list.
How can you plan for this? In in order to reduce its impact on your family.
Start with a basic list of bank account details - codes, numbers, addresses.
During the year, add investments and pension details, as dividends are received or premiums paid out.
Give directions/details of the normal physical locations of items like keys, statements, policies, deeds, certificates. Include every day things as well as those deeds you put in the bottom of the box 25 years ago and have not been opened since!
All this sounds fairly easy to do - and it is when done in advance - BY YOU!
If you have complex affairs - investments, mortgages, share holdings, trusts etc., give a brief description of how it all hangs together and inter-relates and why you have structured it the way it is. You may have saved thousands in a complex structure. But all the savings could be eliminated by high legal fees trying to sort out and understand the situation you have created.
In to-days world the best place to create and hold this information is on a computer with Word, Excel or similar. Yet will your family know which file and directory path to access to get to all this information. So store a printed copy in a location that all family members know about.
As accounts are closed or become redundant, don't remove them from the list but note them as closed/redundant and give the date. Remember, Inheritance tax can go back 7 years.
Still think your family could handle the situation that your sudden departure has created? It may not be nice to thing of dieing, but do you really want to leave a lot of problems for your loved ones?
Start building that list and if you have spare funds put some in joint/single bank accounts that your partner/loved ones can get to when you have gone in order to tide them through those first weeks.
22 December 2008
Are you backing up your data?
Had a scare this week.
Computer failed to boot – screen completely blank!
Feared that the hard drive had got screwed up.
Looked at the option of doing a data recovery from the drive and installing a new hard drive in the machine. Staggered at the current prices – any thing from £450+
Immediately saw that data – or getting it back is more costly than a basic PC.
Eventually got the PC to boot and immediately took a backup of all my data.
Used the CD Read/Writer to create a couple of CD’s – always kept putting it off before. Now I shall do it at least once a month -New Years resolution.
At 75p a disk – that’s much cheaper than £450.
Computer failed to boot – screen completely blank!
Feared that the hard drive had got screwed up.
Looked at the option of doing a data recovery from the drive and installing a new hard drive in the machine. Staggered at the current prices – any thing from £450+
Immediately saw that data – or getting it back is more costly than a basic PC.
Eventually got the PC to boot and immediately took a backup of all my data.
Used the CD Read/Writer to create a couple of CD’s – always kept putting it off before. Now I shall do it at least once a month -New Years resolution.
At 75p a disk – that’s much cheaper than £450.
Using VOIP
Still using a standard telephone whilst sitting at your computer?
One of my kids started at Uni. recently and in the Halls of Residence they have internet access and a Freewire telephone.
Freewire is basically a VOIP telephone service that allows calls to be made over the internet free of charge. We've made calls lasting over an hour at absolutely NO cost.
So if you have remote workers or clients/contacts that you call daily, look to installing VOIP at both ends and use you PC's and internet connection to reduce your phone bill.
We have found the sound and transmission quality to be just like a normal phone. No delay and not voice distortion.
So give it a go - what have you got to lose - only a phone bill!
One of my kids started at Uni. recently and in the Halls of Residence they have internet access and a Freewire telephone.
Freewire is basically a VOIP telephone service that allows calls to be made over the internet free of charge. We've made calls lasting over an hour at absolutely NO cost.
So if you have remote workers or clients/contacts that you call daily, look to installing VOIP at both ends and use you PC's and internet connection to reduce your phone bill.
We have found the sound and transmission quality to be just like a normal phone. No delay and not voice distortion.
So give it a go - what have you got to lose - only a phone bill!
31 January 2008
SaaS - Software as a Service
Recently I was introduced by someone to the term SaaS or Software as a Service. It was presented as a "revolution" in the means of providing software to SME's.
Being the eternal cynic my views are
- Yes it is a new term;
- No it is not a new idea!
SaaS is basically the 1980's concept of timesharing provided by the likes of GEASCO (or was it GSISCO) during the late 70's and early 80's, but revamped to use the internet/web. The web replacing the dedicated BT telephone lines that timesharing used. Which is why in the 70's/80's it was a preserve of larger organisations who could carry the cost of the dedicated lines. With the advent of cheaper mainframes. midi's and PC's from the late 80's onwards, timesharing faded away.
Yes SaaS does allow software to be used without the headache of maintaining a system/server and it can be an economic means of using such software. But there are hidden dangers to this approach. Dangers that are very rarely addressed by the salesperson for the SaaS provider and often ignored or overlooked by the company using the SaaS system.
These dangers can be highlighted by answering the following questions:
- what happens if you loose internet connection for an extended period of time?
- what happens if the SaaS is continually attacked by a Denial of Service?
- what happens if the SaaS provider goes belly up?
- what happens if a rogue/disgruntled employee has a whole night to corrupt your data before you can contact the SaaS provider and get them barred?
The answer is simple - you cannot get to or rely on your company data!
How will this effect your company?
For most companies it would be a disaster that could at the extreme force you to go under.
Are such extended periods without access to your data likely?
Well the IT news of to-day is about the internet lines to India and the Middle East being severally disrupted due to a broken cable carrying internet traffic between Europe and Asia.
This is the crux of the problem - such downtimes/disasters cannot be forecast.
It reminds me of a situation that occured at a company I worked for in the mid 80's. It was moving from timeshare to an in-house system, with the new mainframe servers being based in the north of England some 200 miles away. Everything was set up, tested and ready for the switch over. On the morning of the switchover after a couple of hours of being live, a builder in a JCB outside the new server building decided to dig a trench and went right through the comms. cables ripping them out of the ground. It took 2/3 weeks to re-instate the cables delaying the switchover by a month. Luckily for the company it could immediately switch back to the timeshare provider to allow its business to continue. If this builder has done his trick several weeks later the switch back would not have been an option and the company would have suffered untold damage to its reputation and business.
Of course, this is why Disaster Recovery Plans are so important, no matter what size of company you are, having a Disaster Recovery Plan is essential.
Do you as a SaaS user have a Disaster Recovery Plan for your data stored at the SaaS provider? Plans and data that are independent of those provided by the SaaS provider.
With your own PCs/server it is relatively easy to backup and store company data off-site on an regular basis. It is all under you direct physical control. Getting to it or barring access to it is relatively easy.
Does the SaaS allow you to do this for ALL your data?
Not its own backups, but your backups that you can get to independently of the SaaS provider.
And having got the data, how easy will it be to get access to underlying applications in an emergency with little or no notice!
The cost of having to carry out these recovery plans will be fairly high but it will keep you in business. Without your data you will be severely hampered in keeping the business going.
When things are going well, it is easy to forget the problems that can be caused by the loss of a simple object like a telephone line.
My overall view is that many companies are attracted to SaaS because it saves time, money and having to deal with mundane things like data recovery plans. The very things that when the 'sh.. hits the fans' you will need in bucket fulls.
SaaS is fine when it works, but can be a real disaster when it does not!
For me SaaS is a disaster waiting to happen because it gives a false sense of security to the user company. Just because you use SaaS does not mean that you do not need an independent Disaster Recovery Plan for your company data.
How many SME's that currently use SaaS have Disaster Recovery Plans for the data held at the SaaS?
Was SaaS not supposed to remove the need for such things?
Well yes, but as you can see you can't!
Being the eternal cynic my views are
- Yes it is a new term;
- No it is not a new idea!
SaaS is basically the 1980's concept of timesharing provided by the likes of GEASCO (or was it GSISCO) during the late 70's and early 80's, but revamped to use the internet/web. The web replacing the dedicated BT telephone lines that timesharing used. Which is why in the 70's/80's it was a preserve of larger organisations who could carry the cost of the dedicated lines. With the advent of cheaper mainframes. midi's and PC's from the late 80's onwards, timesharing faded away.
Yes SaaS does allow software to be used without the headache of maintaining a system/server and it can be an economic means of using such software. But there are hidden dangers to this approach. Dangers that are very rarely addressed by the salesperson for the SaaS provider and often ignored or overlooked by the company using the SaaS system.
These dangers can be highlighted by answering the following questions:
- what happens if you loose internet connection for an extended period of time?
- what happens if the SaaS is continually attacked by a Denial of Service?
- what happens if the SaaS provider goes belly up?
- what happens if a rogue/disgruntled employee has a whole night to corrupt your data before you can contact the SaaS provider and get them barred?
The answer is simple - you cannot get to or rely on your company data!
How will this effect your company?
For most companies it would be a disaster that could at the extreme force you to go under.
Are such extended periods without access to your data likely?
Well the IT news of to-day is about the internet lines to India and the Middle East being severally disrupted due to a broken cable carrying internet traffic between Europe and Asia.
This is the crux of the problem - such downtimes/disasters cannot be forecast.
It reminds me of a situation that occured at a company I worked for in the mid 80's. It was moving from timeshare to an in-house system, with the new mainframe servers being based in the north of England some 200 miles away. Everything was set up, tested and ready for the switch over. On the morning of the switchover after a couple of hours of being live, a builder in a JCB outside the new server building decided to dig a trench and went right through the comms. cables ripping them out of the ground. It took 2/3 weeks to re-instate the cables delaying the switchover by a month. Luckily for the company it could immediately switch back to the timeshare provider to allow its business to continue. If this builder has done his trick several weeks later the switch back would not have been an option and the company would have suffered untold damage to its reputation and business.
Of course, this is why Disaster Recovery Plans are so important, no matter what size of company you are, having a Disaster Recovery Plan is essential.
Do you as a SaaS user have a Disaster Recovery Plan for your data stored at the SaaS provider? Plans and data that are independent of those provided by the SaaS provider.
With your own PCs/server it is relatively easy to backup and store company data off-site on an regular basis. It is all under you direct physical control. Getting to it or barring access to it is relatively easy.
Does the SaaS allow you to do this for ALL your data?
Not its own backups, but your backups that you can get to independently of the SaaS provider.
And having got the data, how easy will it be to get access to underlying applications in an emergency with little or no notice!
The cost of having to carry out these recovery plans will be fairly high but it will keep you in business. Without your data you will be severely hampered in keeping the business going.
When things are going well, it is easy to forget the problems that can be caused by the loss of a simple object like a telephone line.
My overall view is that many companies are attracted to SaaS because it saves time, money and having to deal with mundane things like data recovery plans. The very things that when the 'sh.. hits the fans' you will need in bucket fulls.
SaaS is fine when it works, but can be a real disaster when it does not!
For me SaaS is a disaster waiting to happen because it gives a false sense of security to the user company. Just because you use SaaS does not mean that you do not need an independent Disaster Recovery Plan for your company data.
How many SME's that currently use SaaS have Disaster Recovery Plans for the data held at the SaaS?
Was SaaS not supposed to remove the need for such things?
Well yes, but as you can see you can't!
06 May 2007
Small Print Runs for SME’s
A common problem faced by many small companies is to economically produce small quantities of high quality printed material. Here, I mean a quantity of less than 50 with over 16 pages – it could be a technical brochure, training manual, user guide, personnel policies manual, staff manual, etc.
The colour InkJet/Laser printer has helped considerably in achieving this objective. But problems still remain, with the time it takes to physically stack and bind the material in a professional manner and not just putting it into a ring binder of some sort.
Printers normally charge uneconomic prices for doing such work, especially if you are an infrequent customer.
Now a second unrelated problem. It is said ‘everybody has a book in them’. This may be true, but how do you get it published, printed and distributed?
Well in this age of the internet, it has an answer to this last problem – welcome to the age of Personal Publishing websites like www.lulu.com and www.bobsbooks.co.uk (just 2 of the many sites). They will print your book for you, put it on a list of titles and when someone orders will send the printed book to them and what is more you can earn income from it. All very good for all those budding authors.
And here is the answer to our first problem, of how small companies can get professionally printed and bound books at an economic price.
Create an account on your favourite Personal Publishing website, prepare your material and get it into PDF format (that is easy now with free readily available PDF software printers). Then create a project and upload the PDF file and the necessary information, before ordering your copies. No need to worry about distributing it or getting a price mark-up, you will be the only person ordering it.
This method can also help reduce costs, as you only need to order the number of copies you have an immediate requirement for. So in a stroke removing the problem of what to do with out of date printed manuals.
Due to the flexibility of this approach you can easily keep the manual up to date and order the odd copy as and when required.
Is it economic, well compared to the costs of buying top quality paper, ink cartridges/toner, etc. I have found that PP websites come out slightly more expensive. Now add in the cost of labour for time spent minding the printer and binding the material together, then the cost of the PP websites is economic and the finished article quality is much higher.
Two problems solved/resolved by the same solution!
The colour InkJet/Laser printer has helped considerably in achieving this objective. But problems still remain, with the time it takes to physically stack and bind the material in a professional manner and not just putting it into a ring binder of some sort.
Printers normally charge uneconomic prices for doing such work, especially if you are an infrequent customer.
Now a second unrelated problem. It is said ‘everybody has a book in them’. This may be true, but how do you get it published, printed and distributed?
Well in this age of the internet, it has an answer to this last problem – welcome to the age of Personal Publishing websites like www.lulu.com and www.bobsbooks.co.uk (just 2 of the many sites). They will print your book for you, put it on a list of titles and when someone orders will send the printed book to them and what is more you can earn income from it. All very good for all those budding authors.
And here is the answer to our first problem, of how small companies can get professionally printed and bound books at an economic price.
Create an account on your favourite Personal Publishing website, prepare your material and get it into PDF format (that is easy now with free readily available PDF software printers). Then create a project and upload the PDF file and the necessary information, before ordering your copies. No need to worry about distributing it or getting a price mark-up, you will be the only person ordering it.
This method can also help reduce costs, as you only need to order the number of copies you have an immediate requirement for. So in a stroke removing the problem of what to do with out of date printed manuals.
Due to the flexibility of this approach you can easily keep the manual up to date and order the odd copy as and when required.
Is it economic, well compared to the costs of buying top quality paper, ink cartridges/toner, etc. I have found that PP websites come out slightly more expensive. Now add in the cost of labour for time spent minding the printer and binding the material together, then the cost of the PP websites is economic and the finished article quality is much higher.
Two problems solved/resolved by the same solution!
24 February 2007
HMRC and XBRL Annual Accounts requirement from 2010
HMRC requirement for XBRL Annual Accounts is seen by software houses and accountants as a means of imposing themselves on small businesses!
Many small businesses where very relieved when audit exemption came about. As it meant that they could finally ditch the auditor, who they saw as performing a non-beneficial service. A cost without benefits. This is clearly seen by the number of small businesses that have now dropped the audit.
Many small business people are not accountants, but that does not mean that they don't prepare their own accounts (with or without computers) for their own consumption. A majority of small businesses do just this, without recourse to third parties, in order to minimise costs and retain control of the business. If it works for them, who are we to judge otherwise.
With XBRL Annual Accounts becoming a mandatory requirement in 2010 this independence will go, as the level of complexity in XBRL is way beyond the average person to comprehend and requires a computer with appropriate software. The fact that this software does not exist at the moment, does not seem to concern anyone in a position to halt or slow down this requirement. The fact that computers are becoming an absolute necessity to run a small business due to legislative requirements, also does not seem to concern them. What they fail to realise is that a small but significant proportion of small business owners do not use or wish to use computers in their business. Their reasons do not concern us here, but it is a fact.
Some respondents to earlier comments seem to believe that XBRL will be ‘invisible’ to its users. Let me quote from a HMRC communication I have received:
"... Companies and accountants will require both accounting and tax software systems to be XBRL enabled..."
further on
"... principal benefits of streamlined financial reporting are for customers. Software vendors benefit from being able to supply updated versions of their products that support XBRL ..."
and further on
"... XBRL enables integration of accounts production and tax software and both are required by software vendor’s customers ..."
The above statements give in a nutshell why software companies like XBRL; as invisibility comes at a price.
And, if a business does not have the software or time to devote to mastering XBRL, (and few will, given that it is an annual event) they will be forced to pay a firm of accountants, or a similiar establishment, for a service that provides no real benefit to them. Just like the audit - a cost without benefits.
Being a software developer myself, I have looked in detail at how to produce full XBRL Annual Accounts from an ERP package. It is possible, but not easy given the mixed structure and flexible requirements of annual accounts. Of course the differculty will vary for each package, but overall my feeling at the moment is that most packages will make it a new chargeable module. Time will tell as to whether I'm right on this.
In all the material I have seen on XBRL every one; including HMRC; claims that there will be benefits. But nobody can give one clear example of a real benefit for a small business. Many false benefits are claimed. A real benefit; from the imposition of a new tool/procedure; is one that does not already exist using existing tools/procedures. That is, it must be a NEW benefit. And I repeat, I cannot see one clear new benefit, nor can I see one arising. The imposition of XBRL will replace, what is now a simple exercise (using anything from expensive software, through a simple spreadsheet, to a typewriter and plain paper) with tools and procedures that greatly increase costs and complexity.
Why do I focus on small businesses? It will be small business that produces over 85% of the XBRL annual accounts actually produced in a year. So yet again, it will be small business that bears the cost of the ambitions of big business, government mandarins and claims by people with vested interests. The very same groups, that many believe have in the past shown a complete disregard for the small business.
XBRL in and of itself is a useful vehicle for a limited number of organisations – my estimate is less than 250,000 worldwide. What I am against, is its imposition on businesses (over 50 million worldwide) that will bear the cost, complexity and un-usability of it all, without any form of benefit.
If other people fail to see this and get lost in the hype; as has happened many times before with software that has promised the earth and delivered a pup; so be it. But I for one do not follow the herd on XBRL.
Many small businesses where very relieved when audit exemption came about. As it meant that they could finally ditch the auditor, who they saw as performing a non-beneficial service. A cost without benefits. This is clearly seen by the number of small businesses that have now dropped the audit.
Many small business people are not accountants, but that does not mean that they don't prepare their own accounts (with or without computers) for their own consumption. A majority of small businesses do just this, without recourse to third parties, in order to minimise costs and retain control of the business. If it works for them, who are we to judge otherwise.
With XBRL Annual Accounts becoming a mandatory requirement in 2010 this independence will go, as the level of complexity in XBRL is way beyond the average person to comprehend and requires a computer with appropriate software. The fact that this software does not exist at the moment, does not seem to concern anyone in a position to halt or slow down this requirement. The fact that computers are becoming an absolute necessity to run a small business due to legislative requirements, also does not seem to concern them. What they fail to realise is that a small but significant proportion of small business owners do not use or wish to use computers in their business. Their reasons do not concern us here, but it is a fact.
Some respondents to earlier comments seem to believe that XBRL will be ‘invisible’ to its users. Let me quote from a HMRC communication I have received:
"... Companies and accountants will require both accounting and tax software systems to be XBRL enabled..."
further on
"... principal benefits of streamlined financial reporting are for customers. Software vendors benefit from being able to supply updated versions of their products that support XBRL ..."
and further on
"... XBRL enables integration of accounts production and tax software and both are required by software vendor’s customers ..."
The above statements give in a nutshell why software companies like XBRL; as invisibility comes at a price.
And, if a business does not have the software or time to devote to mastering XBRL, (and few will, given that it is an annual event) they will be forced to pay a firm of accountants, or a similiar establishment, for a service that provides no real benefit to them. Just like the audit - a cost without benefits.
Being a software developer myself, I have looked in detail at how to produce full XBRL Annual Accounts from an ERP package. It is possible, but not easy given the mixed structure and flexible requirements of annual accounts. Of course the differculty will vary for each package, but overall my feeling at the moment is that most packages will make it a new chargeable module. Time will tell as to whether I'm right on this.
In all the material I have seen on XBRL every one; including HMRC; claims that there will be benefits. But nobody can give one clear example of a real benefit for a small business. Many false benefits are claimed. A real benefit; from the imposition of a new tool/procedure; is one that does not already exist using existing tools/procedures. That is, it must be a NEW benefit. And I repeat, I cannot see one clear new benefit, nor can I see one arising. The imposition of XBRL will replace, what is now a simple exercise (using anything from expensive software, through a simple spreadsheet, to a typewriter and plain paper) with tools and procedures that greatly increase costs and complexity.
Why do I focus on small businesses? It will be small business that produces over 85% of the XBRL annual accounts actually produced in a year. So yet again, it will be small business that bears the cost of the ambitions of big business, government mandarins and claims by people with vested interests. The very same groups, that many believe have in the past shown a complete disregard for the small business.
XBRL in and of itself is a useful vehicle for a limited number of organisations – my estimate is less than 250,000 worldwide. What I am against, is its imposition on businesses (over 50 million worldwide) that will bear the cost, complexity and un-usability of it all, without any form of benefit.
If other people fail to see this and get lost in the hype; as has happened many times before with software that has promised the earth and delivered a pup; so be it. But I for one do not follow the herd on XBRL.
10 November 2006
Backup that data!
In the last week I have rebuilt an entire database from a few key tables over 4 months old!
Why was this necessary?
Because the user; a SME; never made a backup of its key ERP system.
So when somehow the ERP database got deleted from the server. It had no backup to go back to.
Its only recourse was to use a copy of a few files e-mailed to the system developer (yes me); to try and rebuild the entire database based upon those key tables. Yes it was done - but at a not insignificant cost.
So SME's - make sure you take regular backups and copy them to a PC or media that is not the prime server/PC.
This daily/weekly routine could save you embarrassment and money.
Be warned; PCs/Servers do
crash;
get stolen;
get infected by viruses;
deliberately get sabotaged by discontent employees;
lose data through foolish acts by novice users.
Why was this necessary?
Because the user; a SME; never made a backup of its key ERP system.
So when somehow the ERP database got deleted from the server. It had no backup to go back to.
Its only recourse was to use a copy of a few files e-mailed to the system developer (yes me); to try and rebuild the entire database based upon those key tables. Yes it was done - but at a not insignificant cost.
So SME's - make sure you take regular backups and copy them to a PC or media that is not the prime server/PC.
This daily/weekly routine could save you embarrassment and money.
Be warned; PCs/Servers do
crash;
get stolen;
get infected by viruses;
deliberately get sabotaged by discontent employees;
lose data through foolish acts by novice users.
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