You need to get your business finances right to gain more profits.
When businesses scale and grow you have to leave your accounts to an accounting system. But your first buy won’t last you the lifetime of your business. You should replace your account system when it passes it’s prime to keep at your game, doing more sales and earning more customers.
But how to know when is the right time to replace your accounting system? Here are 10 signs to look for.
You know it for a fact. Your accounting system is decades old. You notice how much the technology has developed since you bought the system and how it disturbs the new technological attributes of your working environment due to compatibility issues.
Its slower than a snail at times
You feel like your accounting system consumes on time. You see how patience your accounting team be with your accounting system when working in it. With your system, even completing a really small entry takes time.
You often experience mathematical errors and incomplete records. This not just make your reports inaccurate but sometimes might even affect your cash flow.
More manual work than automated work
You see how many spreadsheets get printed and how much paper piles up on every desk in the accounting department. You feel like your team spends more time in filling spreadsheets manually and keeping other records documented than using the accounting system.
Audits make you go crazy
Doing audits is a nightmare to your accounting team. Digging relevant information out of the disorganized database, reconciling information from disconnected applications such as spreadsheets, other documents and connecting incomplete records make your team go nuts.
You are blind in your inventory
You often experience product wastes and product deficits. Sometimes you know you ordered that product but you can’t find where it is located when you need it. You don’t know what’s running low and what products you should sell immediately to stop going to waste.
You experience cash flow problems
Your expenses and spendings are everywhere. On sticky notes, entered in a separate spreadsheet or in an invoice on your table. The situation is the same with your earnings as well. With records everywhere, you can’t see a comprehensive view of your budget- which makes you experience the shortage in cash flow.
You can’t keep up with the demand
No matter how many new employees you hire to the accounting team. You can’t see things getting the speed up or productive. Still, your customers don’t get served quickly and efficiently.
You are losing the touch a bit every day
You feel like things get messier and messier every day in the accounting department. You get more and more errors. Tracking spendings and earnings get worse and worse. Predictions get lesser and lesser accurate and the list goes on and on.
Loss of data
Losing data does not surprise your accounting team anymore. Records and files saved and backed up getting disappeared are not new and your team experience it very regularly.
Everything has an expiration date. So is your accounting system.
If you are experiencing above signs it’s time to invest in a new accounting system and get back on the game. So, you can please more customers again while avoiding falling behind your competitors.