4 signs you have outgrown your accounting software
Change is inevitable when you manage a growing practice in today’s climate. Any growing practice will understand the importance of having the correct tools to manage their accounting processes. While your practice will have started with one set of tools to perform your accounting functions, there will be clear signs that you are outgrowing those tools.
Day to day, 'business as usual' often requires bolting on solutions or manual interventions to get from A to B when servicing your clients. Often these may not be seamlessly integrated, and you will quickly outgrow them.
Here are four signs you have outgrown your accounting software and what to do about it.
Are you manually re-keying data multiple times?
One clear indicator that you’re outgrowing your accounting software is calculating the time and effort spent managing data. If a significant amount of time is being spent re-entering and reconciling data, coupled with the constant need to access that data in real time from any place, these are clear signs business as usual should not continue.
When you are running several disparate systems reliant on additional solutions that may not be integrated, it adds in extra time manually rekeying data, creating the risk of errors. It also creates the risk of not having a single source of data, and in the case of on-premise software, data available in the cloud.
Are you managing too many spreadsheets?
Too many additional or unnecessary spreadsheets can be a clear sign that you have outgrown the functionalities of your software. Keeping track of your accounting processes on spreadsheets is frustrating and inefficient with an increased possibility of human error and scope creep.
What’s more, while a small team is close enough to the action to have visibility across software and locally-kept spreadsheets, a growing team will need more visibility to avoid information being buried. Keeping information desktop-bound is frustrating, slow to work with and risky. The need to keep documents stored locally is also often a symptom of outgrowing your systems.
Can you confidently take on legislation changes?
The next question you should ask yourself is whether your software can handle new challenges. These challenges include digitalisation requirements from HMRC, new competition in the market, growth, real-time data needs from clients and integration with the rest of your compliance software.
Can you efficiently prepare reports?
Finally, another indicator to look out for is how much time you spend exporting and consolidating different spreadsheets prepare reports on the financial position of the business? If the answer is too much, then the software isn’t cutting it. What’s more, with data sitting in multiple systems and documents, completing a proper trend analysis can be difficult without the accurate information.
You are outgrowing your accounting processes – now what?
The future of managing your accounting processes is in the cloud. It’s said so often, but what does it mean to growing practices? For one, it means streamlining and digitalising key processes to unlock dead billable time. For another, it’s true real-time data integration, consolidation and access from any device.
Working in the cloud ensures reliability, mobility and increased profitability. Cloud accounting automates key tasks and eliminates wasted time on installation and updates.
Cloud accounting software is not reliant on the device or storage on that device. Data is instantaneously available from anywhere to both you and your clients with the right software. Moreover, it provides a higher level of security than on-premise, with additional levels of encryption.
How can Wolters Kluwer help you?
Despite being the first true cloud product to launch in Europe and with nine years of experience in the UK, Twinfield has been many future-proofed practices’ best-kept secret. Twinfield has enabled many practices to build cloud accounting processes for growth, improve customer experience and achieve greater in-practice efficiency.
Twinfield Online Accounting software easily manages all accounting functions, from invoicing to management accounting. Twinfield is scalable for the smallest start-up to the largest international group who are ready to move from desktop solutions or have outgrown cloud providers. It is a true cloud accounting product with the experience and functionality that growing practices and their clients need to future-proof their accounting processes.
Watch this on-demand webinar to find out more about how Twinfield has maximised the efficiency of other future-thinking practices.