In public accounting, we see a wide variety of accounting systems, from bare-bones to robust. Our clients are consistently providing valuable insights regarding software packages they are currently utilizing. At Aronson, we understand their struggles and are usually the first call they make when considering a change. Here is a list of the most common indicators that a tech company should examine when considering an upgrade.
You want better data, and faster
The use of automation is a must to stay competitive and reduce time and costs. It’s also imperative that accurate financial information is readily accessible so that metrics and KPI’s can be calculated quickly. This may not be as important to a start-up with limited transactional data that can be reasonably managed with manual processes and spreadsheets, but as the business continues to grow, pain points often include revenue recognition and payment integration. If your business has maxed out its ability to automate data entry with manual solutions and needs more real-time information for decision making or metrics reporting, it may be time to consider upgrading to a new system that is more add-on friendly, so that you can scrap the spreadsheets and improve efficiency and accuracy at the same time.
You want your accounting system to do more than just accounting
Growth-stage companies may want a solution that goes beyond day-to-day accounting. Many products are scalable so that features and modules such as financial planning and analysis, customer relationship management, human capital management, or e-commerce can be added as needed. These modules can provide cross-divisional visibility so that decisions can be more easily made from a financial and operations perspective while improving communication and efficiencies at the same time.
You’re growing by acquisition or in foreign countries
Basic accounting systems are made to support smaller businesses with relatively straightforward operations and are not designed to handle certain complex situations. Two of the most common examples are accounting for multiple subsidiaries with significant intercompany transactions and foreign currency transactions. While manual processes and systems can be established to facilitate these technical areas with a more basic accounting software package, it is a complex area that can be more easily facilitated with a system upgrade, allowing an easier, faster full consolidated financial picture.
No matter which system you decide is the right fit for your company, it’s critical to remember that the benefit can only be realized if the features are 1) properly implemented and 2) utilized by your team members.