As technology continues to evolve and become more and more accessible, it has become a vital element of business management. In fact, at least some type of accounting software can be found in organizations of various sizes.
However, as your business continues to grow, you may face a situation where your accounting software is no longer cutting it; whether it be due to changing external factors or internal needs, it’s important to recognize when it is time to move on.
With an excessive number of enterprise resource planning (ERP) to choose from, the first step is to recognize that the one-size-fits all approach doesn’t work here. The stage of your organization, the industry it operates in, and the nature of the business are all factors to consider when determining a new accounting software. If you are experiencing time-consuming and error-prone tasks, it may be time to switch.
Here are some signs that you may have outgrown your accounting software…
1. Highly Inefficient Processes
Technology has developed into a tool that drives efficiency in handling various tasks, therefore, if you find that you are still wasting too much time on manual tasks -data entry, paperwork, etc. – this is a sign that you are in need of an update. Manual work increases your chance of errors, so finding a software to keep up with your growth is essential.
Whether it’s by automating data entry methods and reconciliation or streamlining business operations altogether, a new accounting software allows you to spend your time elsewhere.
2. Software Incompatibility
Beyond lack of visibility, we often find many growing businesses incorporating additional systems for different purposes on top of their existing software. These software systems can benefit your organization in many ways, however, with too many sources of information, there is an increased risk of incorrect information. Furthermore, too many systems require your team to educate themselves on each one.
By having your systems integrated across the board, you can expect more centralized information as well as increased visibility across your business and enhancing efficiency.
3. Limited Visibility Across Your Company
As your business grows and hirews new team members, it becomes increasingly difficult to track what’s happening across your firm. With key employees coming in and out of the office and shuffling around spreadsheets, it can be time consuming if you need to find a certain piece of information.
When you advance to an accounting software that better fits your needs, you will have instant, real time, access to information across various departments of the organization. A good ERP system offers you deeper insight into financial management, reporting and forecasting.
4. Compliance Issues and Requirements
Maintaining levels of compliance is a significant issue many businesses face. If you are facing difficulties maintaining compliance, you may be facing specific regulations that can be costly to uphold. As transparency becomes more and more important and compliance becomes more complex, having an adept system that can handle these issues will alleviate some of the pressure.
5. Excessive Spreadsheets
While there is no denying spreadsheet capabilities, they are prone to errors, difficult to maintain, and hard to keep track of. If you’re finding that your organization is beginning to rely heavily on spreadsheets, it may be a sign that your current accounting system is not meeting your needs.
A sufficient accounting system should be able to handle organizational needs without external supplements.
6. Lack of Support
As systems age, you may discover that there is less support for it, and in turn, you may be forced to embrace a new accounting system. Although you may fear the implementation or adoption process of a new accounting system, there are risks to sticking to your old one, and it can be costlier to maintain.
In addition to the lack of support you may receive, you’ll find that your system can be quite outdated in terms of capabilities and security; due to the advancements in technology, this can mean large gaps between your legacy accounting system and the newer ones on the market.
7. Team/Employee Incompatibility
Whether your business has restructured its management or hired younger employees, your current accounting software may not be compatible with a new demographic. For example, let’s say that your system doesn’t support mobile work. This can be a significant issue if your employees are constantly on the go or are part of the new workforce who have grown up using technology.
Outdated interfaces may not be very user-friendly or tolerated, therefore, management teams accustomed to using advanced accounting systems previously may want to adopt them at your organization to promote growth after witnessing the benefits that a modern system can provide.
If you want your business to grow, it’s critical that your accounting system can change with it and serve your various needs. Adhering to an old accounting system may be holding your company back in terms of both time and money, threatening organizational growth.
In fact, we recommend that you review your current accounting system against your business needs every few years.
If fear of change or a failed system implementation is keeping your business complacent, we advise you to reach out for assistance and guided support. As mentioned above, it’s important to take your business stage, industry, and nature into consideration when shopping for a new accounting system. Furthermore, the substantial learning curve associated with implementing a new system demands that you can effectively direct your team through this change.
Reach out to one of our MCDA CCG professionals and we can help you kickstart the new year. No matter your stage or industry, we can help you choose the right software for your growing business, as well as ongoing implementation support to ensure that your business comes out on the other side stronger than before.
With accounting systems being more capable and sophisticated than ever, it may just be time to switch!