How You Can Identify if Your Accounting Software Needs Updating

How You Can Identify if Your Accounting Software Needs Updating

Image source:

Identifying if your accounting software system calls for replacing can be an arduous project. In the nine years I have operated in the industry I have come all over the world all manner of situations the place firms are being hamstrung by their lack of awareness in this key area of deciding when you have outgrown your current accounting software system, and the manner to easily go about selecting the suitable replacement.

Just a couple of of the more simple flags that may tell you you have outgrown your current accounting software might encompass:

– You are experiencing limited transaction functionality. Where transactional counsel is basically being entered manually and also you find yourself employing more folk to do simple order processing tasks that might probably be automatic. (like integrating with an internet site)

– You have introduced a new department, or merged with another business, and wish to have access to key counsel in real time, and have transparency all over the world all of your entities.

– Your current system has started to slow down requiring you will definitely have to continually archive your data and refer to your backups.

– You have entered new markets or obtained new key accounts with more frustrating accounting implications. Such as "Foreign Currency" transactions that your current system does not facilitate.

– You find yourself maintaining multiple and disparate systems to do your core business applications. Like CRM (Customer Relationship Management), Manufacturing & Financial Information all being maintained separately and certainly not integrated to share key counsel.

More frustrating requirements around integration can prove to be costly in both time spent investigating and implementing, such as:

– Streamlining all your pricing, product and supplier counsel all over the world multiple branches or even with key partners in your distribution network.

– Perhaps you have been asked by your tremendous suppliers or customers to send you electronic counsel and your current system either doesn't, or you have nobody who can offer you a least expensive resolution.

Identifying what areas of your business that require attention to their systems is step one in the strategy. The key thing in this identification phase is to are trying and quantify those areas. This will allow you to prioritise your systems calls for more in truth, and give you an illustration on an appropriate option, design and implementation cost to unravel that problem.

A recent example with a distribution company, they had an subject with their telephone gross sales folk entering in the mistaken products at the order entry phase. The goods being delivered up to 300 klms away would need to be returned, and the correct replacements sent out at the cost of the distribution company. This strategy alone was costing them more than $250,000 not to mention the good will and popularity damage this subject was causing.

The resolution to this particular problem was to design and put into effect a telephone operating system at a price of only one% of the cost of the problem!

There have been many other instances the place the price for the resolution has exceeded the cost of the problem, in which case changing or integrating new software to cope with the problem was uneconomical. But bear in mind that a small subject today can grow and compound additional down the monitor.

Needless to say, changing an accounting system is a provoking project. Not only will it cause disruption, on the other hand usually you will definitely find that the cost of this disruption is grossly understated. Any change will encounter resistance from your current staff. And customers and suppliers will also make up their mind with their feet if your systems cause tremendous problems with them dealing with you too.

In summary, deciding that you wish to have a new system, or an integrated resolution is step one. Taking a full account of all your systems (or lack thereof) and procedures that are failing, not available to you with your current supplier or costing you money is the next step. Quantifying these by laying out the genuine cost of the problem areas will have to then be done. Then you will definitely have a decent basis to create a calls for doc and prioritize it soon. Then your seek for an appropriate resolution can begin.

– Identify that you have a problem with your current accounting software system

– Take a full account of all your systems and procedures that might probably be improved or costing your money

– Quantify these problems so you know the genuine cost to your business. And be sure to factor in the probability cost if it is relevant

– Use this as a consultant to start writing out and prioritizing your calls for of the replacement accounting software system

– Contact loads of vendors in seek for a new accounting suite.

Leave a Reply

Your email address will not be published. Required fields are marked *