CUBIC Utility Billing Software Checklist

By Don Frey

Frey & Company has been developing billing software since 1974. Prospective clients typically call and merely ask for product information. They often have very little criteria that they are using for selection. This document is intended to give the shopper a general checklist of points to consider when searching for this specialized software. The list is not all-inclusive. Utilities are too diverse to cover all considerations in this brief document. However, it is a good starting point for one's needs.

Organization Type
Utility Billing software users can be divided into several types. Government utilities can be municipally operated or special districts. Cooperative or investor owned utilities are often not-for-profit utility operations. Commercial operations are for-profit utilities. Commercial operations usually have restrictions and controls not imposed on governments and nonprofits. Commercial operations operate under restrictions that are regulated by state utility commissions.

Accounting
Commercial utilities require special reporting following NARUC (National Association of Regulated Utility Companies) chart-of-accounts guidelines. Government and nonprofit must operate using fund based accounting if they are providing multiple services, such as water, sewer, refuse, etc. Make sure the product you are reviewing is designed to meet the needs of your organization.

User Interfaces, Character or Graphical
The Character interface is offered on mainframes, UNIX, MSDOS, PCs, etc. It has little in the way of implementation standards. The way it looks and works is purely up to the developer. You learn these applications "from the ground up" because they all behave differently.

Microsoft's Windows is the most popular graphical interface. By Windows, we mean Windows 95 and later releases. These implementations not only offer a consistent look, they also provide a consistent feel, if the standards are followed. If the developer follows the Windows design guidelines, you can generally move from application to application without much difficulty.

The clear graphical interface implementation standard is Microsoft's Windows. Be careful, not all Windows applications have followed Microsoft's design guidelines. Products that have these Microsoft features are known as True Windows products. Be sure to ask this question of prospective software suppliers. And, if the application originated as a Microsoft Windows 3.X application, ask if it has been updated to the newer Windows standards. This is an important consideration.

Operating Environment
Is a single user system adequate, or is a multi-user system required? If a single user system is adequate, you have the following choices: MSDOS, Apple, Windows or Others.
MSDOS is dead. It lacks the powerful features and stability found in today's software offerings. Selecting an MSDOS product would be like buying an out-of-date computer. It simply would not be a wise investment.

Microsoft's Windows dominates the market. Most computer literate people know how to use them. Business software is readily available. Virtually all people receiving training today, are taught using Microsoft Windows.

Other systems, mostly proprietary, are still available. These are leftovers of a bygone era in computers, avoid them.

If you have a need for a multi-user system, you have a number of choices: Novell, Microsoft's Windows peer-to-peer, NT, a variety of UNIX, Linux, and others. We are only going to discuss graphical based systems because that is the state-of-the-art technology.

For a small multi-user system (less than five users) a peer-to-peer is inexpensive and works fine for low volumes. You will probably save about $3,000 by a using peer-to-peer operating system. They are easy to set up and manage. The downside is they are slower than client/server systems and only allow basic sharing of printers and disk space.

Larger multi-user systems are Microsoft's NT (Windows 2000), Novell, Linux and UNIX. Windows 2000 is currently the most popular. UNIX/Linux is the most mature product. It is powerful, robust and a good performer. If you select one of these products, be sure they can provide a Microsoft Windows client interface. Otherwise, you will be faced with an inconsistent user operating environment.

Hardware
The software supplier should be able to offer you some guidance about the equipment requirements for the application. Don't expect them to give you exact brand and model requirements. The industry changes too fast for that level of direction. However, processor speeds, memory, disk requirements and connectivity recommendations should be readily available.

Utility Billing Software Provider
Check out the firm. Don't make assumptions.

• How long have they been in the utility billing software business?
• Did they develop the product or do they just modify and resell it?
• Is Utility Billing a main product or is it just another piece of software? Some firms main focus is on general accounting software. They offer Utility Billing only because they use it to compliment their mainstream products. This often means that the Utility Billing will be a less complete product.
• How does the company provide support? Do they offer toll-free phone numbers, dial-in diagnostics and Internet support?
• How often do they update the product? Major product reviews and updates should be conducted on a regular basis.
• Do they provide professional quality documentation? Documentation is a complex, expensive and time consuming process. It is very important that good documentation be supplied. It is also highly desirable that the documentation be available on-line in an easily searchable form.

Software Features

• The items listed here are features that distinguish a good Utility Billing system. This list is not complete, but it is an excellent starting point.
• Does the system account for each service and/or product as a separate business? Example, if you bill for water and sewer services, you need to treat these as separate operations or funds. Some providers offer utility billing systems with commercial accounting. If this is what they are selling to a multi-service utility, be leery of the product.
• When was the current product introduced? New products may have more Flash, but are less stable. Mature products are more feature rich because they have received many refinements over a period of time. If they are offering a Windows product, find out when it was released. Windows products are very complex and require time to mature.
• Is it a batch or real time system? Batch processing is desirable to take advantage or hand held and other remote reading devices. Real time processing is faster and more convenient for cash receipts and customer information updates. Quality systems offer a blend of both technologies.
• Be sure you don't have to enter four digit years like 2000. Good products eliminate those extra keystrokes.
• Was the system developed using Microsoft's Windows design guidelines? If not, the product may look like a Windows application, but does not work like one. This makes for more difficult learning and day-to-day usage.
• Does it offer gateways to other systems and products, such as ODBC? These gateways provide the user the ability to create special reports and inquiries as needed, without programmer assistance.
• Is a relational database such as MS SQL, Informex or Orcale available? While not a necessity, they are attractive to some larger users. The downside to these databases is that they are expensive, tend to be slower in operation and require lots of additional system resources to work properly. It is not unusual for a database to run much slower.
• What are the limitations on history? Insufficient retention poses management and control problems.
• Is US Postal Service Postnet bar coding and CASS certification available? It can save thousands in mailing costs. Today, it is a necessity for proper cost containment.
• Do you need even or budget billing plans? Levelized billing plans are replacing the aforementioned methods. Levelized plans offer customers more uniform methods of payments without the accumulation of extensive history, settlement periods, and exaggerated balances.
• Are productivity aids available? Tools like bar coded bills for receipting, receipt printers and automatic cash drawers make operations more productive and accurate. These tools should not be overlooked.
• Does the software offer security? Application access should be regulated by program and user.
• Does it offer ACH (Automated Clearing House) processing? ACH is today's standard for electronic payments. It simplifies payment processing, eliminating problems associated with multiple banks. Older systems rely on Bank Drafts that are outdated and clumsy to use.
• Do the available reports, such as rate studies, meet the needs of your operation?
  

Price
Don't confuse price with value. Cheaper systems seldom offer the depth that more complete products provide. Pricing varies tremendously.

Option pricing is quite common. This method is often used for large software systems. Components are broken down into options so that one can purchase only those elements needed by that organization.

Consider support and updates when evaluating pricing. A toll free number should be available. Updates should be included in the price. Some firms charge additional for updates, which can be quite expensive.

Some firms offer reasonably priced software, but have very expensive training fees. Check the cost of training at the vendors facility versus training on-site.

Some firms urge you to engage them to set up and install the system. A good system should not require such a service. If a vendor suggests such an option, ask why the system is so difficult to set up.

Data conversion is frequently requested when changing over to a new system. An automated conversion is seldom practical unless large volumes of accounts are involved and there is ample access to the old system's information. If the client does not have access to file structures and other technical information, an automated conversion may be impractical or impossible. Even when technical information is available, the data stored may not be compatible with the new software. Often, the better and faster solution is to hire temporary services to assist with the keying in of account information.

Calculating The Cost:
One should evaluate the cost on a five year basis to get a realistic picture of the investment.

License Fee: The charge for the software license, which should be a one-time cost.
Modification Fees: The charge for adapting the software for your operation.
Installation: The one time charge for installing the software on the system.
Training: The one time charge for teaching you how to use the software.
Annual Support: The charge for providing technical suppport and product updates, multiplied by five.
The above items should then be totaled to give you a reasonable cost figure for a five year period.

Is It Right For You?
After the foregoing points have been evaluated, you need to make a selection. This part of the process involves product demonstrations, reference checks, etc.

Product demonstrations can take on many forms. Many of the so called demos sent to prospects are nothing more than slide presentations. They may convey a list of features but don't demonstrate how the product behaves in-use. This presentation is not adequate for one to make a decision. However, it is a nice introduction to the products features.

Another form of demo is a limited version of the software. This is sent to the prospect along with demonstration data for evaluation. However, it really doesn't allow the prospect to interact with the product very effectively because of the limited nature of the demo and data.

A live demo, put on by a salesman at your site, is convenient and allows you it interact with the product. Unfortunately, this is often not practical to accomplish unless the firm is local. Even then, the local representative may not have the in-depth understanding of the system you want.

Remote demos are available from some firms. This is a good alternative to the live on-site demo. This type of demonstration allows the salesman to run the demo on your system, over the phone, while discussing the products functionality. He can deviate from the standard demo to illustrate how special situations can be handled. This is equivalent to the on-site demo with one additional advantage, he can readily call on support personnel if he needs help in answering questions.

The last alternative is for you to visit the software firm for a demonstration. This is probably the best means of evaluation. You get a highly interactive demo, plus you see the company's organization. You get a much better feel for the company with such a visit.

Finally, do you feel comfortable doing business with them? Are they competent, sincere, honest and have a real desire to meet your needs? Good luck!

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