Mistakes to avoid when buying accounting software

Common mistakes companies make when buying an accounting solution

Evaluating and purchasing accounting software can be a daunting task. There are so many options to choose from, that the options often seem endless. However, the benefits of upgrading or installing a new system could mean the end of countless headaches, fewer hours spent in the office, and less time spent sifting through a barrage of Excel spreadsheets used to keep track of what’s happening. what really happens in your business.

Many business owners are sick of playing ‘risk roulette’ and want to break free from systems that are terribly slow or outdated, or are tired of having to rely on shadow systems and a bunch of spreadsheets, but many are afraid to take the next step. . Here are a few things to consider so you can avoid some of the key mistakes that are made when purchasing accounting software.

1. Lack of clarity regarding business requirements.

Lack of a clear understanding of what your company needs from an accounting or enterprise resource planning (ERP) system will make the selection process longer and more complicated.

Before a company begins to investigate sophisticated accounting software and ERP solutions, they must first understand what they really need from their accounting solution. Sounds reasonable right? However, it is surprising how many people jump right into the process of gathering information on various accounting packages without taking stock of how their current software works and identifying where their current system falls short. Once you’ve taken stock, you can prepare a comprehensive list of software functionality that you’d ideally like the new system to have. To help get this process started, ask yourself; What should software do for my business today? What kinds of features might my company need in the future?

2. Buy a solution that has an inflexible or proprietary database.

An open and robust database is a very important feature of a good accounting system. A robust and flexible database-based accounting system such as Best-in-Class or an industry-leading database such as Microsoft SQL means you have a secure platform where downtime is minimized, speed and soars the performance of your business.

Proprietary database architecture may be too rigid and may not be easily accessed by other products or applications. For example, if database tables and fields are not easily accessible through commonly used desktop applications such as Microsoft Excel or Word, Crystal Reports, or other reporting programs, your system may not be Flexible enough to meet your daily needs. -Daily necessities. Try to avoid buying a solution that is difficult to interrogate or extract data from, and instead look for solutions that enable information sharing and collaboration.

Flexibility should also be considered when evaluating the reporting features of your software. It is very likely that your business needs a specific set of reports to be run on a regular basis. Some of these reports may be included out of the box as standard reports; however, in most cases, you will need specific reports to customize especially for your business. Note that this may mean you need a consultant to help write or create these for you, especially if the reporting tools within your software are difficult to use. Ask yourself, can you easily customize or write these reports if they are not standard reports within your software package? Otherwise, be sure to include in your budget the cost involved in getting a consultant to help you.

3. Buy a solution that is not scalable.

Scalable means that if your business were to double or triple in size overnight, your accounting software could cope and continue to grow along with your business. Does the system provide the same features and functions for a single user at a desktop as it does for hundreds of concurrent users? If the solution is scalable, this means you don’t need to invest in a different solution as your business grows. It can handle significant increases in users, transactions, or data storage. Being scalable means you won’t have to buy a new system or retrain staff on a new application as your organization grows.

4. Getting stuck with a system that is difficult to integrate, not agile enough.

Make sure the accounting solution you select integrates easily with other systems. Beware of systems that are not agile enough to integrate with other applications. An accounting system is rarely a stand-alone system and is often required to integrate with a sales solution, such as a customer relationship management (CRM) system, warehousing system, or business intelligence system. so you want to make sure that your accounting or ERP solution can easily integrate with a third-party application when needed. Accounting systems often need to “talk” to other systems to provide businesses with a comprehensive solution.

Consider whether your system can be adapted to the “real” business needs you have. For example, can you sell or invoice inventory that is physically received but not entered into the system? Or do you have unique inventory requirements, such as the lumber or steel industries, where multiple lengths and multiple dimensions need to be recorded? Can your system meet your specific needs or, at a minimum, can it be easily customized to do what you need it to do? Are system parameters configured in such a way that they can be easily turned on or off to make the system behave in a certain way? Remember that the solution you select must be flexible enough to work well with your current internal systems and processes.

Cloud offers, some points to consider

Cloud computing, in a nutshell, can be thought of as computing that is offered as a service, rather than a product. These services are usually offered for a monthly fee rather than a large upfront fee. However, there are some pros and cons to consider with this type of offer to determine if it’s the right choice for you.

Some points to keep in mind include:

1. Reduced maintenance- With a cloud offering, end users do not need to worry about hardware and software maintenance, as the service provider is responsible for hardware and software maintenance.

2. Remote Access – The information can be accessed from anywhere at any time, as long as you have an Internet connection. The cloud provides a lot of flexibility when it comes to accessing your data from multiple locations.

3. Automatic updates are made to the software. With a cloud offer the next time you log in to your instance of the software; your software has been updated. So there will be no time-consuming updates and no issues with outdated software.

4. Device independent – Cloud offerings mean you’re not tied to a particular computer or network, you can switch computers and your cloud application will flow through to the new computer.

Sounds pretty good, there are some clear benefits; however, there are also some points that a more security-conscious consumer would be interested in considering.

1.Privacy and Security- Unauthorized users could potentially access stored data. Although cloud computing service providers claim that their offerings are secure, it is possible for hackers to potentially access your financial data and business information.

2. A constant internet connection is needed – If you’re offline, you can’t access the cloud, which means you don’t have access to your data. You should also be aware of service outages because it’s highly likely that you won’t be able to access your data during an outage.

3. Stored data may be lost – Your data will be stored outside of your control on large servers somewhere in ‘the cloud’. For most companies, it’s hard enough to protect data that doesn’t leave your control as part of normal business, but in the cloud you have to keep in mind that you relinquish that control.

3. Longevity of the cloud provider – Will the cloud provider be available for as long as your business needs it? Will your financial data be stored and accessible to you for as long as you and the Tax department need it?

choose the right accounting program And the right service or product offering can improve your cash flow, lead to better decision making, reduce costs, and make it easier to identify sales and growth opportunities. Ultimately, this can bring more dollars into your business and improve your bottom line. Remember to put first things first and start by taking stock of what is going on in your business today. This will be a solid foundation for making an informed decision that meets your needs.