It is common for top-level managers to consider changing software to streamline operations and improve productivity. Your company’s growth path primarily influences the decision to find a more practical solution. Most companies start by upgrading their accounting software since finances are critical to sustainability. Here is what you need to know about changing your company’s accounting software and its effect on enterprise resource management.
Reasons Why Companies Change Accounting Software
There are several signs managers can look out for to evaluate whether they’ve outgrown their accounting software. Growth is the main reason; as businesses grow, so do their requirements. The following are common signs you’ve outgrown your accounting system:
It is normal for your financial requirements to increase as your company grows. You’ll find yourself handling more clients, inventory, and challenging objectives. Changing your accounting software allows you to find a more capable solution to address all your company needs.
For example, it is easy and more convenient for small businesses to operate on a cash basis. However, the managers will lack a clear picture of their finances once they reach a certain level of growth. The company might need to consider a more robust solution like Accounting Seed to streamline operations.
Lack of Data Visibility and Poor Reporting
Established businesses understand the importance of creating a clear overview of their customers and comprehensive business insights. Achieving such a configuration increases efficiency, allows you to keep up with daily activities, and streamlines all operations.
However, most accounting software cannot deliver this level of visibility. You’ll need to find a solution that reports and presents data in an easy-to-digest approach. Accounting solutions like Xledger feature advanced analysis and reporting capabilities for you to make effective performance-based decisions.
Incompatibility with Other Systems
As your business grows, you’ll find yourself using more than one system to execute different operations. Your accounting software must be compatible with these systems, especially since finances are at the core of every organization. Finding a more practical option is the only solution if your current accounting system cannot link to other systems.
The ideal accounting solution should be flexible enough to adapt to the current environment and handle new challenges. If your employees want remote access to your accounts, the platform should make it easy.
Switching to advanced cloud-based systems allows more flexibility. You can look up crucial company information regardless of location with internet access.
Role of ERP in Your Accounting Software
Data integration is among the primary reasons many managers integrate ERPs in their company operations, providing you with better insights. An ERP improves financial productivity and promotes cost efficiency in your accounting function. The following are benefits you can enjoy from achieving proper coordination between your ERP and accounting software:
Manages Company Accounting Needs
The right ERP solution is crucial in executing your company’s accounting needs. And since the accounting department is a pillar in every organization, ERPs like GoldFinch help streamline all operations.
Your ERP handles several vital functions, and they include:
- Estimating capital requirements while managing your financial resources
- Accurately building your budget
- Distribution of available resources between different activities, from labor to transportation
- Payment management
Integrating an ERP into your accounting software provides access to advanced tracking capabilities on your financial situation. You can use the financial management system to improve economic activities like revenue tracking and customer payment schedules.
The advanced tracking and automated systems make managing revenue, billing, and payments more manageable. The system can track annual profits, document invoicing, and execute cost analysis and internal budgeting accurately and effortlessly.
Reliable Financial Data
Your accounting department has easy access to financial data with the right ERP solution. Most cloud-based ERPs emphasize a centralized database to store all company information, including financial data. It secures this information and provides access for authorized employees to view, manage and edit.
Unlike firms that manually manage accounting and sales activities, you’ll enjoy automated data transfers between departments. Automation makes the data less prone to errors and executes redundant tasks, making your financial information accurate and consistent.
The flexibility achieved from automation is among the main reasons established firms exponentially grow their operations. Automation lets your team focus on core company operations while secondary processes run smoothly. It also simplifies accounts receivable and payable operations, improving cash management.
The financial management modules comply with international standards and help track accounting data. The ERP also helps collect financial data from different departments and creates valuable reports and financial statements.
Manual information entry exposes your database to many errors, from keying in incorrect names to transposed digits. Integrating an ERP helps reduce these errors by automating all data entry processes in your finance department. It also allows you to see comprehensive details of each transaction in case you need to identify who made a mistake.
Must I Change My ERP After Switching Accounting Software?
Depending on the platform, changing your accounting software will not interfere with the ERP’s functioning. An ERP solution like GoldFinch integrates with various accounting software, making the transition even easier for your team.
GoldFinch ERP also integrates with Salesforce, meaning you don’t have to change your CRM. It would also help to note that Salesforce grows with your business. You can upgrade from Excel spreadsheets to Accounting Seed or Xledger without requiring any ERP or CRM changes.
GoldFinch is among the few ERP solutions that don’t require changing after you switch your company’s accounting software. It integrates with powerful accounting software and allows the end user to maintain their current configuration when implementing a more appropriate solution for their growing business.
Contact us today to get started!