When do you need to upgrade your accounting software?
Accounting is a crucial function of every organization. Apart from the usual profit and loss statements and payroll records, accounting data can help your business recognize opportunities for expansion and thwart any risky actions. As your business grows, your accounting needs will become more complex and will require better tools for managing key financial data. Your existing software may have served your small business well up till now, however, you need to assess if it’s lacking some features that are essential to handle your mounting operational needs. Discover why maybe it’s time that you get your accounting software upgraded.
Lack of advanced features
Your old accounting software only provides basic features that are no longer serving your business goals. If your company now has more employees, bills, and receipts, and sales then you are running the risk of careless management of financial data. Eventually, these can lead to dire tax-related consequences. When you are contemplating switching to a new accounting system, make a list of what features you need. Ask your accounting department what they need to make business operations smoother. This will help when you are comparing different accounting software.
The limited scope of use
As your team and dealings multiply, it might become more and more challenging to use software that only permits storing a certain amount of storage for your transactions and data on employees and clients. If you sense that you have reached the limit of your accounting software, then start browsing for a more accommodating one.
Accounting has become time-consuming
Growing business operations means more financial responsibilities to keep a track of. If off lately, you have noticed that accounting activities take more time than usual because a whole lot of information has to be entered manually, then you should consider looking at other options. Look for accounting software that offers features such as total or partial automation of certain data like recurring bills and receipts. With minor tasks out of the picture, now your team can take care of more critical financial facts and figures.
No provision for reports
Storing data is not enough, you also need a sophisticated system that drafts reports on demand. Having access to reports gives you insights about your business activities and helps you to make necessary tweaks if you are overshooting your budget.
No real-time reporting
Real-time reporting allows you to collect all the latest information and interprets it as it is happening. The tool of real-time reporting can be extremely useful as it can help your team to take correct decisions under pressure. With obsolete software, you will end up wasting precious time as information is not processed and ready-to-use in the current time, increasing the chances of losing out on profitable prospects.
If you are using outdated accounting software, then chances are that it lacks the modern security features. This automatically puts your data at risk, making it vulnerable to cyber-attacks. Unfortunately, if your system is hacked, you can lose some critical and confidential data not only about your business operations but also your employees and customers. Not to mention, there is an obvious peril of unauthorized transactions that can have long-term implications on the financial health of the organization. Another downside of using outdated software is that it will ultimately become buggy and crash which again might lead to loss of crucial data.
These days there are so many third-party apps that can simplify a lot of tasks for you. Using an old accounting software will restrict you from exploring these options because of which you can lose out on potential money-making opportunities. For instance, sophisticated accounting software offers to integrate with payment gateways so that you can accept online debit and credit transactions.
Your current software is standard
Ideally, your accounting software should be customizable according to your business needs. Standard tools might not offer you the real-time data and reports you need for your business. For instance, a restaurant business might need additional features like menu management, inventory management, staff shift schedules, etc. So, when you are shopping for new software, ensure that it suits the kind of business you’re in.
No remote access
Accounting software with no remote access can cause a lot of inconveniences when you or your employees are traveling or working from home. Delays caused by this can unnecessarily bring down the productivity levels of your workplace. So, we think that you should invest in an accounting system that gives your team the flexibility to work from anywhere and from any device.
The right accounting software can significantly improve all areas of your business. So if you find yourself and your team bogged down with an outdated system, it is time you make the move and embrace a new one.