Accounting is a crucial part of any business, even for the small and medium-sized ones. Consequently, how a business does its accounting has a huge impact on its potential for success.
In this age of technology, an increasing number of businesses are starting to use accounting software, or other computerised systems. It may just be difficult to gauge when to take the leap with your own enterprise, especially with programs and your business itself growing.
That being said, sticking to a traditional and limited accounting system could be holding back your success – something every business owner wants to avoid. To help, we’ve listed a few of the signs you watch out for, which may indicate that old-school accounting is hindering your business’s growth.
1. Your traditional accounting system cannot keep up with your needs.
You might have started your small business with just a simple worksheet to help you keep track of your finances. What’s more, it may have worked brilliantly too. But, keeping and maintaining this crude system will become increasingly challenging.
You know the time has come to move on if you need to use workarounds more frequently and your business is moving beyond individual transactions towards uniform processes
2. You frequently find yourself doing manual calculations, data manipulations and analysis outside of your current system.
Lately, the accounting industry is overflowing with various software applications, from the basic to the comprehensive. The best one for your business depends on your specific needs.
However, if you end up doing more things outside of your accounting system, such as calculations and report generation, it’s time to look for something else. It’s possible to find a program that can accommodate your requirements.
3. There’s an increased need to have tighter system security, financial control and an audit trail.
If you started your venture on your own or with only one or two people to help you out, an accounting system without tight security might have sufficed. However, the growth of your business probably requires more hands to help out, which can wreak havoc on an unsecured system.
Simple changes and deletions can have huge effects on your figures. You wouldn’t want just anyone to have the ability to do this, at least not without a trail of some sort.
4. You can’t keep track of where your money is going.
An accounting system is supposed to make it easier for you to monitor the finances of your business. If yours only confuses or overwhelms with figures, making you wonder where exactly you’re spending money and how much the business is earning, it’s time for change. Why not switch to one that can handle your data seamlessly and easily tracks your cash.
5. You’re turning down business opportunities, because of your system’s limitations.
Saying no to opportunities for growth, such as a potentially profitable partnership with another company, increased demand from customers, or new products and services, is a big red flag.
The limitations of your accounting software shouldn’t rule your decisions. A system should be able to adapt to your business, and any changes it goes through, not the other way around.
If you’re using traditional accounting software and can identify with any of the symptoms listed above, we highly recommend that you reassess your systems. They may not be the right choice for your business anymore. However, should the time come for your business to move forward with something else, ensure that you carefully consider which meets your needs best.
Contact us today if you need any assistance in setting up a modern accounting software for your business.