Thinking of upgrading your accounting system? Read this.
New financial data technology promises innovative and better features. But the challenge is deciding when new software is right for your company. Much of today’s software is engineered so well that it will perform adequately for years. But if your competitors’ technology is more advanced than yours, that could hinder your success and your bottom line.
Here are a few tips to help you decide if the time to upgrade your accounting software is now.
- Is your team ready to adapt to new software? When making a major change to your accounting software, first make sure the software’s primary users are up to the task of adapting to the new technology and activating all its functions. The purpose of the upgrade is to take advantage of the various features that will enhance output and increase efficiency. But if users are reluctant to learning the various functions, there’s no reason to change.Make sure your users are agreeable before you implement the new software. And help them see the benefits as well as the opportunities. If your users understand the benefits and are well trained and adaptable, they may be able to extract added value from a more sophisticated accounting system. For instance, they could track key performance indicators to generate more meaningful financial reports.
- Is the price right? You’ll of course need to consider the costs involved. As holds true for any technology purchase, project leaders must set a budget and focus the search on products and vendors offering only the functions your company needs.But don’t stop there. Explore add-on services such as free trials, initial training, and ongoing support. You want to get the most value from the software, which goes beyond the new and improved features themselves.
- Do you need to integrate systems? This is the concept of networking your accounting system with your other mission-critical systems such as sales, inventory, and production.For most companies today, integration is essential to maximizing the return on investment in accounting software. So, if you haven’t yet implemented this functionality, an upgrade may be highly advisable. Just be aware that a successful companywide integration will call for buy-in throughout your business.
Typically, if a company doesn’t need any major accounting process changes, it probably doesn’t need a major accounting software change either. But if upgrading both will help grow your business, it’s absolutely a step worth considering. George Pickard, CPA, MSA, Ciuni & Panichi, Inc. Audit and Accounting Principal, can provide further guidance and information to help you make a sound decision. Contact him at 216-831-7171 or by email here.
You may also be interested in:
Yes You Need a Succession Plan
New Rules for Deducting Pass-Through Business Losses
© 2018