When it comes to your business’s software, it’s common to be lured by technology trends and whatever’s being deemed “the next best thing.” However, impulsively upgrading essential business systems, such as your accounting software, can have costly side effects and may cause more stress than anything. My team recommends clients commit to their current accounting software for at least five years before making a switch to learn the ins and outs of the system and harness its full potential.
If your business has been eyeing an upgrade for your accounting software, consider these factors first:
Integration and Connectivity Options
Can your current software integrate with any of your other systems to gain new features and capabilities? Or are there applications on the market you can connect to your existing software to expand its functionality? If you’re seeking new software because of missing features, you should first check to see whether your current software can be upgraded via integrations and app connectivity to achieve the functionality you want.
The Cost of a New System
To no one’s shock, the price of new business software hasn’t gone down (and won’t anytime soon). Purchasing brand new accounting software can be costly and should be seen as a long-term investment. If you’re not 100% confident in your purchasing decision, it’s better to hold off until you’re certain. You could be throwing away a hefty sum of money that could be spent elsewhere in your business when you opt to buy a new system without confirming it’s built to scale and addresses all your needs.
Change Management and Training
Everyone loves change, right? A factor that can often be overlooked when buying a new accounting software is the time it takes to properly train team members on the system and the disdain they’ll most likely feel about the new change. With a business area as vital as accounting, you need to ensure your team is on board and involved in the selection process so that they’re prepared for the potential transition. Otherwise, you may see crucial team members leave or risk having your financial processes turn into a mess during the switchover.
Data Transfer and Storage
The financial data stored in your accounting software is extremely important to your business operations. It’s what confirms your business is compliant, and it’s commonly the first thing that’s audited (should an audit be requested). Implementing new accounting software will require you to extract your financial data from the old system and transfer it into the new system. This process often isn’t seamless, and without great diligence and attention to detail, you could run the risk of crucial data slipping through the cracks. Before upgrading your accounting system, be sure your team is ready for the data transfer and has a plan in place for business continuity and financial tracking during the software transition and after the new technology is fully implemented.
Needless to say, the decision to purchase new accounting software for your business shouldn’t be made on a whim. Your financials and accounting procedures play major roles in your business’s success, so you should research extensively before upgrading the technology that supports them. Don’t throw your money toward shiny new technology that may not suit your business needs — commit to exploring the full potential of your current software; you may be surprised what you find.
At Creative Planning Business Services, our outsourced accounting team helps you maximize your current software and can guide you through the process of purchasing new software if and when it makes sense for your business. Schedule a meeting with us today to learn more about our services and how we can take your accounting processes to the next level.
