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.
Have you outgrown your accounting system? Take a look at these signs to see if your accounting system
is holding you back:
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. But that benign neglect can mask significant risks. An outdated—perhaps even unsupported—software platform can translate into reliability and downtime problems and security vulnerabilities.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
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.
For more information on these signs, you can download a whitepaper which fully explains these signs here.