Technology is tricky. Much of today's software is engineered so well that it will perform adequately for years. But new and better features are being created all the time. And if you're not getting as much out of your financial data as your competitors are, you could be at a disadvantage. For these reasons, the decision of when to upgrade your company's accounting software can be difficult. Here are three keys to consider:
- Your users are ready. When making a major change to your accounting software, the sophistication of the system needs to align with the technological savvy of its primary users. Sometimes companies buy expensive software only to have many of its features gather virtual dust because the employees who use it are resistant to change. But if your users are well trained and adaptable, they may be able to extract added value from a more sophisticated accounting system. For instance, they could track key performance indicators to generate more meaningful financial reports.
- The price is right. You'll of course need to consider the costs involved. As holds true for any technology purchase, project leaders must set a budget and focus the search on products and vendors offering only the functions of your company needs. But don't stop there. Explore add-on services such as free trials, initial training, and ongoing support. You want to get the most value from the software, which goes beyond the new and improved features themselves.
- You need to integrate. This is the concept of networking your accounting system with your other mission-critical systems, such as sales, inventory, and production. For most companies today, integration is essential to maximizing the return on investment in accounting software. So, if you haven't yet implemented this functionality, an upgrade may be highly advisable. Just be aware that a successful companywide integration will call for buy-in from every nook and cranny of your business.
Typically, if a company doesn't need any major accounting process changes, it probably doesn't need a major accounting software change either. But if upgrading both will help grow your business, it's absolutely a step worth considering. Let our business advisory team provide further guidance and insight.