Has Your Organization Outgrown its Accounting Software?
By Ron Ries
Each organization has its own unique management needs. And, though the particular business may vary, providing high quality service with stellar administration is required by all. It is
impossible to achieve these goals, promote automation and reduce expenses without a robust, efficient accounting system.
A majority of early-stage businesses opt for quick solutions such as Intuit QuickBooks to fulfill their accounting needs - and why wouldn’t they? Entry level accounting software packages are typically adaptable, easy to use, easy to set up, and cost
effective. However, as organizations grow, they will discover that these basic software systems lag behind. It’s important to be ready to implement a more robust product when your organization needs it. So, what are the tell-tale signs that you have outgrown your entry level accounting solution?
1. Unacceptable delays in menus and screens when navigating
2. Long delays in report printing times
3. When any list exceeds 10,000 entries - however, most companies see performance issues earlier
4. Once the file size reaches 30MB or the total number of transactions exceeds 32,000
When you realize that you have outgrown your existing system, you are faced with a very important decision; to continue using a solution that is restricting growth, or to invest in a solution that will take you into the future. As you do your due diligence on potential solutions, it’s important to look for something that is scalable, will grow as your organization does and, most importantly, will handle your industry-specific requirements and issues.
Aside from needing a strong core of business and financial applications, companies should also be looking for a number of other capabilities that are particularly beneficial.
Features to look for include:
Interfund Accounting: Automates the transfer of balances between funds
Encumbrance Management: Maintain control over budget expenditures, monitor encumbered purchases
Commitments and control account management
Allocation calculations, intercompany accounts, statistical accounts
Built-in workflow capabilities
Ability to attach supporting documents to journal entries
Drill down displays offsetting entry or entries
Real-time access to financial information
Easy access to all information, which improves case and project management abilities
Integrate data from disparate systems
Automate and streamline business processes such as capital and invoice management
Compliance with regulatory and external audit requirements
Automatic conversion of data from old solution to new
Flexible deployment options: On premise, in the cloud, or a combo of both
Deciding on a new accounting system may seem daunting. However, ERP solutions such as Microsoft Dynamics GP make it easy for organizations that have outgrown entry-level accounting packages to transition. Powerful business/financial applications with highly specialized functionality and the potential for scalable growth are the perfect tools to lead any organization into the future. While there are a multitude of items that need to be considered when deciding on a new accounting system, five top areas are highlighted in the chart below.
Our professionals are well versed in assisting organizations with determining the best software to meet their changing needs. If this analysis inspires you to re-think your existing accounting software needs, our professionals in partnership with our network of quality vendors can assist.