There comes a point when a business outgrows their financial accounting system and it ends up holding them back.
Take stock of the accounting system you use and what it does for you and the man hours it takes to undertake the tasks. It’s imperative to keep a clear picture in your mind of where the business is heading, that way the system you choose has the ability to grow with your business by giving the data you need, to make important business decisions.
Ask yourself a few key questions to see if you should review your accounting system:
- Have your accounting processes changed as your business has grown?
- Are there manual tasks that could easily be automated, saving you time and resource?
- Does your current system integrate across other software that you use?
- Can you easily get a real-time snapshot of the financial position of your business?
- Could your system still work if your team grows and additional users are needed?
- Security – have your accounting controls been updated to combat new types of fraud?
The downside to this is your team knows your current system and probably won’t welcome the change and of course, there’s a business cost and upheaval introducing a new system, but that’s all in the short-term. Keep in mind your business ambitions and remember this is an investment!
A recent project comes to mind. We recently worked with a manufacturing business who had seen significant growth in a relatively short space of time. Their old MS DOS based system was not up to the challenge, and they were at the point that they needed to take the bull by the horns and evaluate their options, that’s where we stepped in.
We helped them to choose a new business accounting system and implement and train their staff.
The multi-million turnover business was using an antiquated (and creaking!) 1980’s system. With plans to triple their turnover and expand their international presence further. The hypothetical ‘sticking plaster’ was no longer working and was ultimately slowing things down, rather than helping their business to run more smoothly.
Consequently, this gave them the push they needed to update their accounting system. Not only would they have a more efficient day-to-day accounting software, but also access valuable management information easily.
The management team were keen to find a replacement and update their accounting processes. Whilst at the same time become much more efficient, especially in the time taken to input data and the quality of analysis the system produced.
Working with many large multi-national firms puts us in the best position to assess existing business processes and work out how they could improve efficiency in the future. We shortlisted suitable accounting systems and helped by advising on the implementation of the accounting system. In addition, we supported the business and their team throughout the transition.
Post by Jeremy Gardner