You Might Need New Accounting Software If . . .
Before purchasing an accounting software solution it is best to determine if you need to change, and if you do, what exactly will best meet your needs. It is imperative to be brutal in your assessment. Take the time to define your organization's goals, such as reducing duplicate efforts, reducing administrative time spent on filling out paperwork and filing the papers, keeping more complete records, securing confidential data, being able to quickly run reports, or saving a back-up of financial information for disaster planning purposes.
Some indicators you are in need of new accounting software include:
· Completing multiple entries for one transaction (on a journal, again on a financial report, on multiple spreadsheets, etc.)
· Delays in financial reporting
· Financial information on various reports not agreeing (AP sub-ledger doesn’t match GL balance)
· Frustrations with pushing too much paper and not doing enough analysis of financial position
· Inability to quickly retrieve historical information (Where did we buy our paper from last time, and how much did we pay?)
There are many other things to consider prior to purchasing an accounting software solution for your organization. These include:
· The need to streamline processes to devote more time to strategic level objectives
· Increasing the communication across all management levels
· Freeing up physical space from old paperwork
· Storing historical data for the organization and comparative reporting
· More timely and accurate reporting
· Ability to clearly demonstrate financial results to constituents (shareholders, investors, regulators)
Accounting software solutions generally have the capability to have multiple user-licenses, which allows for users to have specific access to the program, such as access to areas such as data entry, reporting, payroll, etc. Additionally, users often can be allowed to (or restricted from) seeing specific accounts or areas of activity. So a business owner could have full access while a manager could have access only to his or her department.
Implementing an accounting software solution into your organization is a great investment for streamlining processes and freeing up managers and accounting staff to perform more strategic goals of the organization. The system doesn't have to be fancy, but it does have to be functional. Review the Buyers Guide or complete the survey at www.accountingsoftwaresuccess.com to see which products are available that meet your needs.
About the Author
John S. Francis graduated with his MBA from Southern Illinois University- Carbondale in 1985. Since that time he has worked in various accounting professions. From 1996 to 2009, he was founder and President of one of the country’s leading accounting software implementation firms. Acknowledged as a “Top 100 Technology Pacesetter” and a “Killer VAR” by Accounting Today magazine, and a “Top 100 Value Added Reseller” by Accounting Technology magazine, his firm successfully managed accounting system implementation and training engagements for thousands of clients worldwide. In 2009 he began working on accountingsoftwaresuccess.com, a site dedicated to assisting accounting professionals with their search, selection, implementation and use of accounting systems. The site contains several tools to assist accounting professionals with their accounting software research including an Accounting Software Selection Tool and an Accounting Software Articles Library.
