Outgrowing Your Accounting Software?

Transcription

1 Outgrowing Your Accounting Software? Six reasons you need to change accounting software By Darren Cran UK Managing Director of AccountsIQ

2 Introduction As businesses grow in complexity and transaction volumes, some of the typical starter systems like Excel spreadsheets or even the more popular, low end accounting software products such as SAGE, Xero or Quickbooks, begin to creak. Many Finance leaders put off the change, sweeping it under the mat until next month, next quarter, next year while processes become ever more cumbersome. There are distinct advantages in acting promptly to upgrade systems once the need presents itself. Delaying a move to more sophisticated accounting simply exacerbates the problem, expending time and energy to work within the confines of a system which no longer meets needs. In this five-minute read, AccountsIQ s MD, Darren Cran, explains the symptoms of a business which should be looking at more sophisticated accounting and what steps businesses ought to take to ensure the correct decisions are made when sourcing new systems.

3 Six Reasons you Need to Change Accounting Software 1. You need a more reliable and simpler method for consolidation Your business has grown so much that you are now managing a number of separate subsidiaries or branches, some may be remote from the main office. Consolidating becomes very difficult to manage using Excel spreadsheets; it is time-consuming and the results may be inaccurate. Take into account foreign currency; minority interests; and a need to view sales, purchases and group performance and you have a single point of failure without the right system. Once you start using a software platform which incorporates consolidation, you might wonder how you ever managed before. AccountsIQ comes with a consolidation module which saves days and often weeks of time and gives you results you can trust. As accountants, it s important to distinguish between simple aggregation software and true consolidation software which includes the entire general ledger; foreign exchange; business analysis (locations, departments, projects, divisions); KPIs; and sales and purchase information. Crucially, consolidation should occur within the raw transactions held within each accounting SQL database, everything being managed from one single platform. The functionality is out there for practices which are ready to take the next step up in consolidated accounting. Its availability in the Cloud makes this quite sophisticated technology more budget-friendly than ever before. Outgrowing Your Accounting Software? 2

4 2. You need to improve Month End and move away from spreadsheets Excel is a great tool to allow you to extract data from your accounting system for analysis and external reports. Turning data to useable information gives your business the critical edge it needs to compete and grow. However, relying too much on Excel to manage your month end means you run the risks of low productivity, duplication of effort, delays and unhappy staff who feel there ought to be a better way. The great news is that you can move away from spreadsheets to manage critical month end tasks like accruals, prepayments WIP and deferred revenue. By using a month end automated process you can simplify each of these month end routines by setting up rules and automatic postings. Again, software built for the Cloud and in the Cloud means you can enjoy this level of automation for a low monthly fee. AccountsIQ helped us to move away from the old model of sharing data sets with clients, exchanging spreadsheets and updating them. Now we can work in complete partnership with our clients, sharing access to the same, live information stored in the Cloud. Gerry McNally, Director, MBSL Outgrowing Your Accounting Software? 3

5 Today, it is both affordable and achievable for businesses of all sizes to automate the management of Accruals, WIP, Prepayments & Deferred Revenue. Accountants spend countless hours and days preparing and reconciling these critical month end accounts. Using AccountsIQ s brand new journalling management system, the entire month end is automated with rules, automation and controls. Darren Cran, MD, AccountsIQ 3. Stronger and more efficient reporting would help you make better decisions Are you exporting the usual extracts into Excel each month and beginning (yet again) the same chopping and changing process to get the data into a format that can be used to review and make decisions? The more complex your business becomes, the bigger this manual and error-prone process is likely to be. It also tends to rely on key staff who know how to manipulate the data. You might also find you have little or no time to invest in a better approach. If there is no change, you are likely to get the same outcome every time. AccountsIQ has in-built, enterprise reporting capability, delivered through a simple yet extensive library of reports and dashboards. Coding and Analytics are flexible and easy to change over time, giving you the level of reporting you and your clients need, directly from the system, at the click of a button.

6 4. Integration, customised to your needs would make your job easier There s a lot of hype surrounding the concept of integrating business systems to create extended automated processes and sharing of data across the business. It s great when it works and it can certainly save you a lot of time. However, a common complaint is that standard integrations available with entry level systems only solve part of the problem. A simple bank statement integration is a good example of an integration that works really well. Most Cloud-based systems now offer this as a standard element of month end processing however growing businesses typically become more reliant on other core systems (e.g. EPOS, Reservation, e-commerce, CRM and Procurement Systems); the type of integration and business logic that should pass from one system to another is not so straightforward. This is why you need a business partner to advise you and to make these integrations work. When you need more than the simple off the shelf integrations, it s a sign that you need to move to the next level, to a Cloud partner who can work with you to solve these issues. AccountsIQ are Cloud pioneers who have worked very hard with my team and with our clients to get everything as right as it can be. This has enabled our clients to grow with confidence and has allowed us to service that growth and indeed drive it. Tony Price, Partner, PwC We knew we had to take a Cloud approach to create the kind of service our larger clients want at a reasonable price remote access, more efficiencies, less paper, less time. We also need quite complex functionality including multi-company consolidation and multi-currency accounting. Ian Bremner, MD, French Duncan Outgrowing Your Accounting Software? 5

7 5. Better technology would help you work collaboratively, saving on travel and expense When it comes to the idea of Digital Transformation, it s not a concept that should fill you with fear. Accountants who move toward Cloud-based and mobile technologies see instant savings and there are some really quick wins which will instantly save time and improve efficiency. Common projects which we help practices put into action every day such as Time and Expense capture, PO raising and Invoice Approval through a mobile platform (delivered to clients and staff) enables real time collaboration - an obvious win for practices when it comes to saving time. You might also consider using a mobile App to reduce volumes and allow people to deal with tasks at any time, using a device of their choice. Mobile working will give your staff major user satisfaction and productivity gains. Working on the go avoids time lag from pending approvals and keeps everything in real time - a major win for the finance department. If your software isn't going to be compliant with Making Tax Digital by the deadline this year, you'll need to consider your options carefully. Make sure you're compliant in time by switching to Cloud-based accounting software. There are distinct advantages in acting promptly to upgrade systems once the need presents itself. Delaying a move to more sophisticated accounting simply exacerbates the problem, expending time and energy to work within the confines of a system which no longer meets needs. Outgrowing Your Accounting Software? 6

8 Do you suffer from any of these frustrations? Is your technology or are your processes preventing you from providing the best service you possibly can? It could be time to change. The acid test is when you cannot improve your processes further because your technology and software is holding you back. Darren Cran, MD, AccountsIQ The finance system should be the leading business platform supporting growth. For this reason alone, the decision to invest in change at just the right time is a responsibility your team should own. Processes which you have followed for years can be reviewed in the light of your new system and immediately improved. Also, the concept of integrating other business systems in the Cloud opens up a whole new opportunity for efficiency outside of your department s immediate reach.

9 Four Things to Bear in Mind Once You ve Made the Decision to Upgrade 1. Future-proof as much as you can Switching to the right accounting system can make a critical difference to your business. Therefore, in addition to gaining an important understanding of your business needs right now, it s also wise to try to plan ahead and predict what your needs are likely to be on a five year time horizon, if you can. Consider your growth plans: will you need consolidation? Are you opening more outlets or branches? What is your transaction volume likely to be? Will the software be able to scale? In this way, your choice of accounting software can support rather than hinder your business strategy as much as possible. 2. Cloud versus installed Cloud accounting software or Software- as-a-service (SaaS), offers many advantages over software that s installed on your premises. Cloud accounting software is hosted by the accounting software supplier and therefore you don t need an expensive IT infrastructure such as servers and associated licences. As a result, Cloud accounting software is becoming increasingly popular and there are now SaaS solutions available for bigger businesses. Many are suitable for companies and practices who offer outsourced accounting services to a range of businesses of all sizes. Most Cloud accounting providers charge a regular monthly fee that includes 24/7 access, user support, software upgrades and maintenance. Cloud systems are also useful for practices collaborating with clients because you can provide them with user access; everyone can share the same solution and the same view of the most up-to-date information. Outgrowing Your Accounting Software? 8

10 3. Get strategic about functionality Upgrading your software provides a real opportunity to expand the range of functionality that your software provides. Again, by taking a strategic view of your company requirements, you can ensure that there is the best possible match between functions and business demands. Cloud accounting software solutions for bigger businesses now offer comprehensive features out-of-the-box including: Consolidation for consolidation of financial data to give you a company-wide view of your business performance. Business Intelligence to create and manage your own defined key performance indicators. Advanced accounting features such as budgeting and cashflow management, stock (inventory) control, purchase and sales order management, and time and expenses accounting for better project management. Productivity features such as ebanking integration, auto-bank reconciliation, electronic document management, and electronic approval workflow. Outgrowing Your Accounting Software? 9

11 4. Work with a Trusted Provider Many businesses are looking for a software provider they can trust as a partner. Someone who can advise on set up, design, adapting reports and when to integrate with other systems. This is a service we believe is missing from most entry level software providers. At AccountsIQ we ensure that our software is the right fit for your requirements. Our rolling Five Year Product Plan takes into account feedback from our customers and their needs. Our Customer Success Programme ensures every client project is a complete success. Take a look at some of our customer success stories here. The amount of time tech will buy you to invest in more strategic and valued time with your senior colleagues is priceless. Darren Cran, MD, AccountsIQ

12 Book an AccountsIQ Demonstration If you would like a personalised demo of how AccountsIQ can save you a week every month at month end, simply request a Demo. Get in touch with us via sales@accountsiq.com or Tel and we will be happy to talk to you in more detail about your accounting, reporting and consolidation needs. About AccountsIQ AccountsIQ is a SaaS Cloud-based accountancy and consolidation system for fast-growing, mid-sized businesses. It offers advanced consolidation features, multi-currency accounting and enhanced business analytics. AccountsIQ is currently used by more than 3,000 companies and 25,000 users in 40+ countries. For more information, speak to a product expert on or sales@accountsiq.com