Eventually, every growing business comes to the realization they need new business accounting software.
As revenues and expenses grow, inputting data into Excel can quickly become a gigantic hassle. All of these tedious tasks take away time your accounting team could instead spend on reviewing new strategic investments. But how do you know it’s time for a new business accounting software system?
It all starts with a simple conversation. Spend just a little bit of time going through your CFO or controller’s day-to-day schedule and you should quickly get a sense of whether it’s time for a new business accounting software system.
Listen closely. If any of the following issues come up, it might be time to start reviewing vendors.
1. Too Much of the Day is Spent Manually Entering Data
When one thinks of the field of accounting, they often picture men and women with their head down over a book, methodically writing down journal entries based on recent transactions.
Thankfully, much of this work can now be automated thanks to modern accounting software systems. But that doesn’t mean every manager has necessarily hopped on board. Some still prefer the old fashioned method, believing automation takes away autonomy from individual accountants.
To put it simply, this isn’t the case. By freeing up your accountants’ time through automation, you’re transforming their job from being one dominated by manual tasks to one that is instead primarily analytical. Even more importantly, automation helps to reduce human error. People aren’t perfect and occasionally make mistakes. Software removes much of the human element.
Of course, some transactions still need to be entered manually. But if your accounting team spends any more than two hours each day manually inputting data, it’s time to look into new software.
2. Your Business Accounting Software System Can’t Generate Timely Reports
We’ve already mentioned how the modern accountant should be much more of an analyst than a bookkeeper. Their time should be spent identifying areas of savings and pinpointing new revenue streams and not pounding away at the keyboard.
Without timely reporting features, however, this is nearly impossible. New accounting software systems have the ability to quickly consolidate a large amount of data and generate insightful reports. These reports should, ideally, give managers a clear picture of how each of their business units are performing on any given day.
Older systems aren’t always up to task. Some just don’t have the computing power to process a large quantity of data in a short amount of time, making obtaining in the moment insight a difficult task. Other systems don’t have reporting capabilities at all.
If it takes your team more than 10 minutes to pull reports you need to understand how your entire business is performing, it might be time for an upgrade.
3. Your System Can’t Integrate With Other Apps
We’re living through an age in which integration is key. Cloud computing has created an ecosystem of sorts in which the power of one app is only enhanced by how it interacts with others.
Accounting software systems are no different. The latest iterations are able to integrate with expense management and CRM systems, among others. This once again spares your team from having to manually transfer information from one system to another. It also only increases the robustness of your reporting since you’ll now have insight into all aspects of your business.
During the conversation with your CFO or controller, determine how much time, if any, the team spends transferring data from various systems to your accounting software. Realistically, if they’re spending any time at all taking data from one system and moving it to another, it’s probably time to see if there are better options out there.
When the time comes to make the change in accounting software systems, we’re here to help. Our Sage Intacct experts are here to customize a solution to your accounting team’s needs.
Contact us today for a free product demo.