Before taking on a software partner it is worth considering how well aligned your interests are

In the current climate, we are being forced to review our business practices and systems. Can software help or is it just another liability?

There are several software offerings in the Financial Services industry ranging in price from free to thousands of pounds per month. These amounts can depend on the number of licences and/or users as well as functionality. But the most important issue is what does it do for your firm?

The statistic that on average advisers spend two thirds of their time doing admin needs to be changed to ensure that advisers do what they are best at – talking to clients and marketing the business. Having good software is essential to help you to grow the business. It helps to delegate the day by day processes and as you develop your use of the software, it replaces the filing cabinet - as an active not passive resource.

Ann Dempster, managing director of Plum Software, explains what to look for when choosing a software package

1. Plum Software uses the latest technology and is constantly being rewritten and adapted to meet regulations and the changing needs of the profession

It is hardly surprising that more and more advisers are recognising that having good back office systems is vital to the smooth running of their business. As clients are increasingly demanding good service and will not pay for services that do not add value, this has become the number one priority for advisers. On top of this, in light of increased regulation and lower margins, this has forced IFAs to recognise that technology will mean the difference between success and failure.

What is the true cost of buying software that does not match your requirements for both now and/or in the future?

Many financial advisers buy a software solution to satisfy their perceived business needs and budget, often to realise that they have either outgrown the software or it is inadequate for their needs. This is probably because the software just stores information with limitations on access and analysis. Yet having invested all this time and money installing the software, the thought of having to go through the data transfer process often stops people rectifying this problem.