Your business is growing. You see an increase in year-over-year revenue and have started hiring new employees to handle the growth. Growing pains are expected, but are you still seeing operational inefficiencies that hurt your profit margins?
Most companies overlook the accounting software they use. They are simply content with using what they have and create workarounds when they can’t get the information they need.
How does outdated software impact your business growth?
When you are limited by the functionalities of your accounting software, you start working outside of it and create unnecessary processes and workarounds.
These temporary solutions can lead to errors that will affect your business. Decisions are made based on available information. If your software is not capable of providing the information you need, you create workarounds to get this data. Errors can occur and may result in a decision that can negatively impact your business.
Secondly, these unnecessary processes tend to take up more resources and will slow you down. You become inefficient and that will affect your profit margins.
When do you decide to upgrade to a new accounting software?
Upgrading to a new accounting software should happen before you realize that you’ve outgrown your current system. As you forecast your growth, you must anticipate the challenges and look to mitigate them before they slow you down.
As your business expands, a few important factors will influence your decision to upgrade to a new accounting software:
With a growing customer base, you may find that the amount data stored is causing your system to slow down. It could be that your basic accounting software is using old technology and unable to compute large amounts of data. You can try cleaning up some of the data, but that’s a temporary fix and this issue will arise again.
Access to Data
Hiring more employees usually means more users for your accounting software. Most basic accounting software limit the amount of concurrent users. If your growth includes opening a new location, then look into an accounting system that allows for multisite implementations without user limitations.
Specific Business Requirements
Perhaps when you first started your business, you required just the basic features for your accounting software. As your business evolves, more complex processes are put in place and this requires a robust system that is flexible and scalable.
Your accounting software should give you total operational visibility, streamline processes, and provide insight so you can make the right decisions to grow your business. You may need to upgrade your current accounting software if it doesn’t meet this criteria.
Posted on December 6, 2013 by Al Romeyn | Permalink