Accounting is one of the primary tasks of businesses that need careful evaluation! With the advancement in technology, enterprises have started relying on accounting software for most complex functions. Business growth can be both thrilling & terrifying to business heads. Upgrade the current accounting software or move to new software to tackle future accounting challenges. Make sure you’re well aware of the accounting benefits of the tool before making the final decision.
If you’re still relying on traditional methods of accounting, then it is time to adapt to accounting software for the management of finances. To instill the right kind of growth in businesses, selecting the right accounting tool or replacement of the existing one is imperative to ensure business growth. Businesses can also upgrade their existing accounting system or replace it with a productive one to handle the current challenges smartly. This guest post highlights the points to be considered when changing the accounting system.
Table of Contents
- 7 Things to Look into while Changing the Accounting Tool
- Why Migrate from the Current Accounting Software?
- Return On Investment (ROI) & Cost Effectiveness
- What to Choose – ‘Phased Deployment’ or ‘Big Bang’
- Look for Usability and Functionality of the New Tool
- Look into the Integration of the Accounting Tool
- Look for a Reliable & Secured Accounting Tool
- Check the Timing of Accounting Software Adoption
- Final Thoughts!
7 Things to Look into while Changing the Accounting Tool
The key to getting the best accounting tool for businesses is to identify the exact financing needs, do the required research work, speak to the professionals and get the most suitable tool. Migrating from one accounting tool to the other needs expert evaluation of the current software and locating the missing functionalities required for the business. Often businesses end up with misfit accounting tools if the uses aren’t analyzed rightly.
Let us now look into things that need to be cared about while changing the business accounting tool –
Why Migrate from the Current Accounting Software?
Business accounting is one such task that needs precision & accuracy! It is important that the current accounting software in use sync with the operational necessities of the business. There is no harm in migrating to a new accounting tool that is promising and is better placed to fix the accounting troubles. One of the key aspects is to look into the current accounting tool in use & the properties missing in it!
All kinds of changes need time and proper effort to keep the project going at the right place. Remind yourself regularly & the team as to why you’re doing it & look into the benefits. Consult with the accounting staff and write down the tangible benefits with numbers. The process helps in measuring the success of a project and it reminds everyone to be proud of the changes that are happening.
Return On Investment (ROI) & Cost Effectiveness
One of the prime reasons as to why businesses need to move to a new accounting tool is the cost of the software. Businesses need to be sure that the new accounting tool will provide good ROI & it will ensure better value for money rather than the current systems. All the costs need to be set out transparently and thus businesses need to look for all the hidden costs. Make sure that you’ve all the right information to compare the different accounting tools.
Check ROI from the accounting tool and look for options in which you need to only pay for what you need. Some accounting tool service providers are charging for functionalities that aren’t relevant to the needs and the additional modules are available at a simple cost. It is vital to shortlist the accounting tool that guarantees better ROI.
What to Choose – ‘Phased Deployment’ or ‘Big Bang’
Installing new accounting software in the system can be done either in a phased manner or in a big bang way. The phased approach is referred to as the process where a part or division of the accounting tool goes live & then the next part. The big bang is the process in which the tool goes live in its full form at the same time. There are multiple benefits to each of the ways, but the main point to consider is the time availability of the staff, risk of delays, & urgency of the project.
The phased approach is allowing the smaller teams to be involved and run the accounting software. But, most of the businesses are relying on the big bang to introduce the entire software to businesses at one time. Also, the employees are able to coordinate their work on the tool and also maintain a proper working relationship.
Look for Usability and Functionality of the New Tool
The reason to shift to new accounting software will be to get the most out of the tool for business benefits. It has to meet the user’s needs and also review the own business process to have a good understanding of the requirements. Make sure whether the accounting software is easy to use or adapt to, with minimum resistance. Check whether the tool is cloud-based or not for getting remote access to the account.
Make sure if the accounting tool is having the necessary functionalities to solve the pain of organizations. Rest assured of getting the accounting tool with top-rated functionalities or usage of the software.
Look into the Integration of the Accounting Tool
Integration is one of the important characteristics of modern-day accounting software. The tool needs to be easily integrated with other tools to allow simple business financing. As the financial system works altogether, businesses can plug into any system and do efficient accounting. It is idle to select the accounting tool that allows integration with other apps.
Does the shortlisted accounting software have an open API? It is vital so that the developers can easily connect to the systems with programmable connectors to other systems. It ensures a reliable exchange of data between systems. The right kind of accounting tool will ensure integration with the banking system or CRM or EPOS if needed.
Look for a Reliable & Secured Accounting Tool
There are multiple ways to look into the reliability & security of the accounting software. Businesses can focus all their activities & energies on the running of a tool with reputed security installations. Keeping the accounting data safe at all costs should be the main target of business & thus select the tool that is promising to deliver the best results. It is also important to understand what would happen if the system went down.
Look for the disaster recovery capabilities of the accounting tool and check the system security on a regular basis. Also, look for systems with strong user access control and that ensure regular data backups.
Check the Timing of Accounting Software Adoption
At the time of migrating to new accounting software, the businesses need to complete all their pending work & then start with the process. The section of the accounting tool is vital to minimize disruptions to the business. It is better if the business plan for the changeover is in advance! The organizations should be aiming for a 6-month run-up process to ensure enough time for the procurement. Small businesses will be able to install a new accounting software instantly & run it in a matter of weeks.
The accounting professionals are working with businesses to determine the best system for the organization. But, the owners also need to consult with professionals to get the best idea on the most effective accounting tools in the market. Migrating to new accounting software is the best option if you’re not getting the desired results with the current account tool. The selection of the right accounting software is vital and it will decide on the direction the business is moving or proceeding.