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5 reasons you may have outgrown your current accounting software

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How do you know when it's time to start looking for a new accounting system? Is the tool that you're using good enough? Can you extract enough value from some future state that would justify all the hassle and headache associated with upgrading to something different? Before you can even start asking those questions, it's important to figure out the current gaps associated with status quoe approach.

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5 reasons you may have outgrown your current accounting software

  1. 1. 5 REASONS YOU MAY HAVE OUTGROWN YOUR CURRENT ACCOUNTING PROCESSES Jason Clause & Doug Kennedy © 2014 Microsoft Corporation. All rights reserved.
  2. 2. Contact Information Jason Clause IT Consultant @ Endsight 510-823-4604 jclause@endsight.net LinkedIn – Jason Clause Twitter - @jasonclause
  3. 3. Contact Information Doug Kennedy Partner @ CFOs2GO 415-770-3840 dkennedy@cfos2go.com LinkedIn – Douglas L. Kennedy
  4. 4. 5 REASONS YOU MAY HAVE OUTGROWN YOUR CURRENT ACCOUNTING PROCESSES
  5. 5. 5P a g e Limited Time for Decision Making 1
  6. 6. 6P a g e • As your company grows, so does transaction volume and the amount of data housed in the accounting system • As you approach the limits of your software’s transactional capacity, it will begin to operate slowly, freeze up, and continually give you the message “Not Responding” • If you’re still using simple spreadsheets….this method requires immense amounts of manual labor and re-checking (to avoid errors/fraud) • Each limits decision makers’ and management’s time frame to react to their internal financial information Limited Time for Decision Making1
  7. 7. 7P a g e • Stable database, which has incredible storage volume, and is trusted by even the largest enterprises, vastly improves the speed and capacity of your operations L i m i t e d T i m e f o r D e c i s i o n M a k i n g HOW DOES AN UPDATED ACCOUNTING SOLUTION SOLVE THIS? 1
  8. 8. 8P a g e Too Much Paper 2
  9. 9. 9P a g e Too Much Paper2 • As a company expands rapidly, dealing with paper invoices, expense sheets, physical financial statements, etc. becomes a logistical nightmare • If you’re geographically spread out as an organization, this becomes even more difficult • As this continues, you waste time: manually placing financial information in the system, attempting to match paper invoices, and searching for previous orders and payment history
  10. 10. 10P a g e T o o M u c h P a p e r HOW DOES AN UPDATED ACCOUNTING SOLUTION SOLVE THIS? 2 • Through an automated and integrated system you can eliminate paper from the accounting process entirely • No more time needs to be spent on manual inputting or filing, or searching for invoices and documents • Without paper, the number of adjusting entries necessary to provide correct financial information is reduced • Additionally, the removal of paper keeps expenses and revenue information highly organized…which eases the process of completing closing entries for temporary accounts at years’ end
  11. 11. Delays in production effecting business ROI
  12. 12. 12P a g e 3 Delays in Production
  13. 13. 13P a g e Delays in Production3 • Sales orders are a process which interact with multiple parts of your business and require consolidated efforts • If you do not have an integration which addresses the flow of this information, then you must manually overcome this • This causes delays in the production schedule and rushes of demand that could incur the use of premium shipping and overtime hours • All of this can lead to a loss of consumer and supplier confidence, and potentially even the contact itself
  14. 14. 14P a g e D e l a y s i n P r o d u c t i o n HOW DOES AN UPDATED ACCOUNTING SOLUTION SOLVE THIS? 3 • Full automation of electronic data interchange, with a new operational solution, allows you to direct orders from production, all the way to the point of sale at the click of a button • By ensuring that production schedules are adhered to, and removing human errors within data handling, costs associated with delays become a thing of the past
  15. 15. 15P a g e Inaccurate Calculations 4
  16. 16. 16P a g e Inaccurate Calculations4 • Simple human errors, which can have monumental negative impact on financial statements, are incredibly difficult to remedy or foresee • Many companies attempt to make due with discrete manufacturing systems… but these are particularly vulnerable to the many variables which must be incorporated in the production and sales process • In addition, companies, which use spreadsheets will have considerable difficulties attempting to troubleshoot/test massive accounting applications • This often results in incorrectly calculated costs for the sales process, which can cause: losing clients and jobs due to overpriced products, and high costs of goods sold due to poor inventory tracking
  17. 17. 17P a g e I n a c c u r a t e C a l c u l a t i o n s HOW DOES AN UPDATED ACCOUNTING SOLUTION SOLVE THIS? 4 • With a modern accounting process you can achieve automated standard costing • This provides insight into which products are the most profitable, and lets you know where your business should direct its focus • With more succinct and standard costs, you can more effectively project demand and revenues, preparing yourself for the future
  18. 18. 19P a g e Employees Building Reports Manually 5
  19. 19. 20P a g e Employees Building Reports Manually5 • Most legacy financial management systems provide no way of adjusting the statement formats or manipulating data within the reports • To compensate for this, employees often need to consolidate information from many sources • Often this requires company accountants to wait for each department to contribute their information, and then cross reference • If using spreadsheets, then it will also be necessary to double check formulas and figures to ensure accuracy
  20. 20. 21P a g e E m p l o y e e s B u i l d i n g R e p o r t s M a n u a l l y HOW DOES AN UPDATED ACCOUNTING SOLUTION SOLVE THIS? 5 • An updated operational process allows you to format and quickly run financials with ease • With the use of automated work flows, your business’s accounting team could route the reports to both internal and external decision makers • With more confidence in reported figures everyone has more time to address other tasks

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