Is your accounting workflow inefficient? Here are seven signs a system upgrade is necessary.
Technology changes everything, and it changes quickly. The financial health of your business is too important to trust to an underperforming, outdated accounting system. Relying on an accounting strategy built on such a system may be hindering your success.
If your business is using outdated technology to manage your business’s financial needs, it’s time to step up. Your accounting needs, reporting and compliance requirements, specific nature of your business, and even your company’s stage of growth will vary based on industry. There is no one-size-fits-all accounting strategy. But certain truths about efficiency are universal.
If you feel as if you’ve lost control of your accounting processes, it’s time to assess your status quo. Maybe cleaning up your books is all you need to get back on track. But if you recognize any of the following signs, it may be time to chart a new course.
1. Are inefficiencies costing you customers?
Your customers should never have to know about your accounting system. It should perform its job quietly in the background, an invisible part of your customer service. If you are consistently running into problems with your accounts payable, look at all steps involved in your invoicing process.
Today’s best-in-class accounting systems offer a comprehensive solution to managing every accounting function, from basic bookkeeping to payroll and tax calculation. Even less robust software offers integrated inventory management and invoicing functionality. There’s no reason to lose a customer over an accounting mishap.
2. You are not mobile
Mobile options should be a standard part of any system. You should have the convenience of being able to access important information about your company from anywhere. If your system is not cloud-based, it may be time for a change.
3. Your business is not as organized as it should be
If you are struggling to find answers to basic questions about your company’s operations and tax time is always a nightmare, your technology could be the problem.
Your financial housekeeping should be seamlessly integrated into your daily business activities. Even if your books are fully automated but everything is not easily accessed online, you are still a few steps behind.
4. Your business processes are not automated
Along with being organized, being fully automated can make a huge difference. Some processes that should be automated are:
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Report generation: For tax time and for keeping your business on track, your essential data should be accessible with a click. Many software programs have advanced past the basic balance sheets and income statements and offer fully customizable, extremely detailed reporting features.
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Tax and regulatory compliance: Having all your essential data housed on one system with automated reminders makes it much easier to maintain compliance with required filings and fees.
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Account tracking using bank feeds: Free up the time spent reconciling multiple accounts by linking credit cards and bank accounts to track all cash flowing in and out of your business.
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Data validation and verification: Some accounting systems enable coordination with verification software for tracking inventory and purchase orders.
5. You have reached maximum capacity or functionality
If you are still relying on paper books and spreadsheets or have been using your existing system for more than 10 years without an upgrade, you have reached maximum usability.
Today’s accounting systems are worth considering because of their enhanced functionality and convenience. Advancements in ease of use, mobility, reporting functions, and flexibility make these solutions superior to their predecessors. Don’t put off upgrading or changing platforms. You may find that the overall gains will outweigh the initial inconvenience of adjusting to something new.
6. You have security concerns
It’s time to consider other options if you doubt your existing system’s safeguards of financial information. Reliance on cloud-supported technology has grown, which means so have the incidence of cyberattacks. This created a need for software developers to build in added security features. Unless all your accounting processes are being conducted offline, a system you install now, even if it is cloud-based, will be safer than your old one.
It is still valid to have concerns about data security, but that is no reason to forego the latest versions of accounting software’s convenience and efficiency.
7. Your employees are complaining
The right tools make everyone’s jobs easier. Chances are you already have employees who are early adopters. They may be frustrated by the lack of efficiencies in your current workflow. You could be amazed at how an upgrade could improve their spirits. It’s a good idea to let them in on your research and decision-making process.
It’s also possible that some employees will be resistant to change. Stressing the benefits of a new system – especially how it can make many aspects of the employee’s daily work life easier – will help convert the skeptics.
Have you thought about outsourcing?
Perhaps even with an accounting system that covers all the necessary bases, handling this in-house is not the best option for your business. Outsourcing some or all of your accounting responsibilities may be something to consider.
At Franco Blueprint, we are small business accounting system experts. We help business owners make the best decisions about managing their accounting needs, from automating to outsourcing. We can assess your current processes and make recommendations, so your business runs more efficiently.
It is our business to assist small business owners and help them secure their livelihoods during times of crisis and beyond. Contact us for a free consultation.