As the size, complexity, and pace of your business grow, the frustrations can multiply. That accounting system you relied on to manage finances and operations has, over time, gradually become a barrier to growth and efficiency. But in a highly competitive business climate, you can’t afford spiraling overhead costs, functional limitations, and unnecessary risks.
Have you outgrown your accounting system? Take a look at these signs to see if your accounting system is holding you back and learn what to look for in best-in-class, cloud-based financial management solution that can transform your business.
5 Signs you have outgrown your accounting system
1. You’re on an Old Accounting System Release
With so many pressing responsibilities, it’s no surprise that many finance departments aren’t necessarily laser-focused on the state of their software infrastructure. In fact, it’s not uncommon to find companies that haven’t touched their accounting systems for years.
An outdated—perhaps even unsupported—software platform can translate into reliability and downtime problems and security vulnerabilities. And the costs of maintaining a legacy system quickly increase.
2. You’re Held Back by Disconnected Systems and Processes
Finance works best when it works in seamless collaboration with other departments and functions. Unfortunately, legacy accounting systems often aren’t well-integrated with other enterprise tools and systems —including commercial applications and custom-developed software. That often leaves you trapped in manual processes, spreadsheets, cumbersome workarounds, and slower workflows as you manage conflicting formats and rekey the same data in multiple systems.
3. You Can’t Keep up with Business Expansion
As you add business units and expand into new markets and geographies—or even add entirely new lines of business—the burden on finance can quickly become overwhelming. Soon enough, you’re handling new subsidiaries with more currencies, tax jurisdictions, regulatory frameworks, sales channels, and product costs. And if you’re growing through acquisition, the added complexity isn’t gradual—it’s immediate.
4. New Business Requirements and Regulatory Compliance Are Difficult Obstacles
To keep up with customer demands and expectations, many businesses are experimenting with new revenue models and alternative business structures. One of the most important new developments is the subscription business model, which is increasingly popular across many industries from software to services. However, that’s placing new demands on finance, because the billing and revenue-recognition requirements for subscription businesses are more complex.
5. You Aren’t Able to Fully Track Your Business
Business success depends on the ability to see what’s happening in all areas of your business, especially if your operations or market conditions are changing rapidly. You need a holistic view of everything from bookings to available capacity to inventory levels and, of course, financial metrics. But you can’t make informed, timely decisions if it takes weeks to assemble, present, and analyze that data.
Legacy accounting systems have served many organizations well for many years. However, they were designed and implemented to meet the finance and accounting challenges of yesterday— they lack what most forward-looking businesses need for today and tomorrow. That’s because modern finance requires you to perform financial closes faster, to capitalize on automation to process transactions more efficiently, and to deliver deeper business insights in real-time across the organization.
To learn more about these 5 signs, download the report here.