How to Tell If Your Accounting Software System Needs to Be Replaced

Have you often wondered if your accounting software system needs to be replaced? Here are some common signs that can help you recognize it might be time.

Age of the Accounting Software System
Accounting software typically has a lifespan of 5 to 10 years. As it becomes more dated, it becomes costlier to update, more difficult to support, and your staff will start fending for themselves as they become frustrated with the system.

Visibility of Data
Another sign that your accounting software needs to be replaced is the visibility of your data. Oftentimes, companies struggle to discern what their margins are on products and services, and the best they can do is blend together high-level or average data to achieve these metrics. Really, you can only go so far when you don't have the data that you need, and this results in a lack of confidence in the data and the process overall as you try to unravel these mysteries.

Inefficient Workflows
Insufficient workflows are another sign that you need new software. Just think about the workflows that you might be doing. What does it take to initiate an order or to get a requisition started and approved? Think about the manual hand offs that you go through day to day and how many systems you have to enter the same data into. I mean, if you're facing lots of workflows and workarounds and spreadsheets, that's a huge indicator that your software needs to be replaced.

You Recognize You Need New Accounting Software, So Now What?
Cheer up, because modern software has come a long way toward automating workflows, providing visibility, providing dashboards, as well as helping you with cost allocations and other challenges. So if you're thinking about moving forward with a new accounting software solution, think about defining your needs, defining your goals, setting a timeline for getting the new software on board. And then start seeking out vendors who can align with both your needs and your constraints to help you get the confidence you need to move forward.

For more information about accounting software, please contact a partner like The Resource Group. And join us next time and we'll talk about the recipe for software selection success.

by Gary Volland, The Resource Group