When companies start out newly, they often feel pleased to use basic accounting software programs such as QuickBooks or sometimes even MS Excel. It may come to you as a surprise but there are a number of companies which are doing just fine using basic accounting software programs. However, this only lasts for a certain period of time.
When the sales, profits and other quantifying data accumulate in size and complexity, basic programs are just not good enough. They may cause a company to work sluggishly and they may even cause fatal errors. The problem here is that most companies which use basic programs are often lost when it comes to deciding when they must make a switch towards a more robust accounting program.
While ERP tools come with accounting modules, companies often feel it may be too early to install an entire suite of ERP or even purchasing just the accounting module. To solve this dilemma, a company or an organization must engage in some introspection.
The statements below will help companies to decide if they are beginning to outgrow their basic accounting software programs:
- Your accounts personnel cannot take the load
Most of the times, it is the accounts personnel who feel the brunt of working with an outdated or stripped down version of an accounting software. When numbers begin to increase, accounts personnel feel overburdened and they may ask you to update your software directly or indirectly.
- Your business processes are becoming unmanageable
Another situation is, when you begin to find it difficult to comprehend all the numbers or get a clear picture of where your company is heading towards. If you are not able to find clarity in the situation, it is probably time to invest in a more robust accounting program or module.
- Your employees have stopped being creative
Accounts departments often have the most challenging tasks in a company. They not only have to keep up with fluctuating number but will also have to offer companies and organizations new ways to save, increase profits and come up with solutions. If they are not being as creative as they used to be, it is probably time to find a better accounting program.
- The numbers are not providing valuable insights
Insights are very important to run a company efficiently. Older accounting programs do not offer valuable insights. Newer programs come with business analytics and intelligence tools which help you to utilize the numbers better. If you feel you are unable to find insights the way you wish to, it might be time to get a new and updated ERP or at least an accounting program.
- You are not able to save taxes, money or increase profits
Most importantly, your accounts program should help you to do your taxes. Company taxes depend upon regulations and rules which change from time to time. Modern accounting modules which come with ERP systems understand these regulations in an intelligent manner. It is crucial to use updated accounting programs in order to deal with taxation laws, regulations and rules in a more efficient manner.
At the end of the day, if you feel your company is no longer functioning as robustly as it used to early, it might be time to reevaluate your IT strategy. One of the most important of them is to invest in an ERP or at least in an accounting module. This helps you to understand all the numbers at a profound level and help you gain insights that you didn’t know existed. Certainly, it is a good idea to speak to an ERP consultant to see which accounting module will help you the most.