Whether you’re new to computer accounting or have used the technology for a few years, there comes a time when ever small business owner asks: Is this efficient? Accounting processes take up a lot of time for small businesses, and flaws in the system can amount to massive time loss (as well as a few heavy sighs). As your company grows, you will eventually hit an inflection point wherein it becomes obvious that a change in accounting process is required. This could be that your company has outgrown its initial financial system, such as QuickBooks, or you’re looking to move into something more helpful than manual or Microsoft accounting tools.
Knowing when to switch your system is key to an easy transition—in fact, we’d posit that timing is the most important variable in the entire process. That said, figuring out when you need to switch is not an easy process. You’ve likely grown accustomed to a slower pace and have adapted accordingly, or maybe you’ve just grown too comfortable with your current system to change.
There are a variety of reasons companies are forced to change their financial systems. If your business is experiencing any of the following, it’s probably time to start researching new systems.
- You are struggling with reporting and can’t analyze your data efficiently
- Inefficient manual processes drain time and productivity
- Dependence on cumbersome spreadsheets, which are slow and easily corrupted
- The need to manage multiple entities or currencies is not supported by your current system
- Lack of real-time access to financial data
When transitioning into a new accounting software, recognize that hanging onto a financial system that slows down month-end closing and other fundamental processes can pose a huge barrier—to both you and your clients. Eventually, you’ll have to make the switch. If you’re experiencing the above phenomena, now might be the right time.