Once upon a time, maybe tracking all of your financial and accounting data in an excel spreadsheet was all it took. Then, as you grew, you probably graduated to an accounting software tool. But, as you continue to grow, so does the need for better organisational tools. So, how do you know when it’s time to upgrade your business accounting software to a more powerful package?
If the following items fit your situation, you may want to look into upgrading.
Small business accounting software is meant for just that – small business. They often come with limits as far as the number of transactions, number of clients, number of employees or the amount of storage they can handle. As your business grows, so will your number of transactions, clients, employees and the amount of storage you require. If you’re reaching the limits of your current software, then it’s time to upgrade.
If you’re spending a lot of time on record keeping, and you still can’t stay on top of your accounting data, it may be time for an upgrade.
As your business grows, the amount of information that you need to keep track of does too. However, when you don’t have all of your information recorded accurately, you can’t look at your financial reports and you can’t track your company’s finances.
It’s time to find a new accounting software tool that simplifies or partially-automates the record keeping process, and you can spend your time analysing and coming up with ways to improve your business instead of struggling to keep track of it.
In this day and age, you should be able to access your accounting data from anywhere, anytime. Integrating your entire system with your accounting software can help make it easier to record, easier to analyse and easier to improve.
Regardless of where you or your employees work from, having an accounting system that can be as mobile as you are can help your business grow further, and allow you to take care of bookkeeping, accounts and billing faster.
Your accountant’s job is to help you with your business accounting. He or she understands how your business works as well as how your accounting software may be holding you back from growing and expanding. If you’re unsure of how to improve your current system, your accountant can be a great resource, and may be aware of how software, like MYOB Exo or MYOB Advanced, can improve your accounting process. A more integrated system may be just what you need.
Your accountant knows you and your business, and they are an expert when it comes to accounting, so if they’ve suggested that you upgrade your software, you may want to take the advice into consideration.
Accounting software helps you keep track of things from employee payroll to the number of sales per customer. If your current system has become unorganised, inaccurate or even slow and clunky from maxed out memory, then it’s time to look for a better alternative.
The right accounting software can help improve all aspects of your business processes, so having the right one is critical. If you find yourself in this situation you might find some of our other resources helpful:
Or you can get in touch with one of our consultants who can help find the right software package for you.
Your accounting system effectively documents all the activity in your business and provides critical information to make good business decisions. If you’ve outgrown your accounting system and you’re moving to a new and improved model (like MYOB Exo!), it’s absolutely necessary that the transition is as seamless as possible so no information falls through the cracks.
To successfully transition to a new accounting system, you need to consider these factors:
CHANGE MANAGEMENT
A smooth transition starts with preparing your staff for change and guiding them through the process. First, communicate why your firm is moving to a new accounting software system. While the transition might require a lot of work on behalf of some key staff members, explain that your business will benefit from the new system in the long run.
Once you’ve explained why you’re making the transition, train your staff to implement the change. Schedule some time and verify that your current accounting procedures are documented. Work with your software provider to create a plan of conversion. Ensure that all stakeholders (accounting and finance staff, operations, senior management and even sales if your accounting system is linked to your inventory or job costing functions) are involved in planning the conversion.
UNDERSTANDING YOUR UNIQUE BUSINESS
Your company has processes that are unique to its particular industry. A retailer, for example, accounts for inventory. On the other hand, a manufacturer must account for raw materials and work in progress. You need to consider your unique business processes and how they link to your accounting structure in order to implement a smooth software conversion.
TEST YOUR NEW SYSTEM
Ideally you should have a transition period in order to test the new system is tracking data in the same way as the old system and avoid missing anything out. Run a set of transactions concurrently through your current and new system and review the results to ensure they are accurate.
Consider a denim jeans manufacturer for example. They decide to run transactions through their new system, at the same time, they process data through their existing (live) system. If their new software is operating properly, they should get the same accounting results as their current system produces. In this case, that means that the same dollar amount of denim is moved into production using both accounting systems. Both programs also post the same number of units, the same sales intake, same profit figure etc.
A FINAL SET OF TRANSACTIONS
Before you implement your new system, generate a set of adjusted financial statements at the end of a particular period. That “clean” set of financials will be your starting point for a new system. At the end of October, for example, you print a trial balance and post your accounting adjustments. Once you’re satisfied with your adjusted trial balance, you generate October financial statements (balance sheet, income statement, etc.).
GOING LIVE
Say you decide to go live with your new accounting software on November 1st. You’ve communicated the November conversion data to your staff. Each person in the organisation has provided his or her input on the implementation process. Your staff has a new operations manual and has trained on the new software.
At various points after software implementation, you analyse the results that are generated by the new software. You use your October 31st accounting data to ensure that November accounting activity is posted correctly.
These tips can help you have a smooth transition to your new accounting system.
WORK WITH AN EXPERT
Consider working with an accounting software expert to help you with the implementation process. We are available to talk through your particular situation with you and provide advice to help make your software switchover seamless. Contact us at (08) 9328 1678 or via our contact form and we’ll get in touch!
Copyright @ 2016 - WallStreet. Designed by Webriti