Brought to you by
downlaod

The Access Group provides integrated business management software.

Save content
Have you found this content useful? Use the button above to save it to your profile.

How to build a winning case for a new accounting system

15th Feb 2019
Brought to you by
downlaod

The Access Group provides integrated business management software.

Save content
Have you found this content useful? Use the button above to save it to your profile.

2

As a finance team leader, you’ll have plenty of day-to-day work to oversee. However, you’ll also be responsible for the long-term goal of ensuring that your organisation has the accounting and finance function that it needs to fulfil its obligations – and that requires some strategic planning. A great place to start on this mission is your accounting system. If you work within an organisation that has a clunky or old-fashioned accounting system in place, then there’s a golden opportunity for you to propose a new accounting system to the C-Suite. Here’s how to do it.

Explain the options 

The first thing to do when making your case to overhaul your firm’s accounting system is to explain where your finance function is right now. Perhaps your system isn’t compliant with Making Tax Digital, or maybe it’s slow and difficult to use collaboratively. It’s then wise to go through the options: preserve the status quo with all of the identified problems that will entail, go for your alternative option, or choose a different system altogether. 

Financial analysis 

Everything comes with a cost, and accounting systems are no exception. It’s worth using your finance skills and explaining to the decision-makers in your organisation how the new system can be paid for. You could, for example, use a discounted cash flow method to explain the benefits of the investment. Working out the net present value will give an idea of how much profit changing the accounting system is likely to bring back to the firm, while working out an internal rate of return is also helpful. Financial models could also be helpful here, but remember that you’ll also need to take into account other costs in order to paint an accurate picture – such as how much tax relief the firm will get as a result of the capital expenditure. 

Risk management 

For the C-Suite, risk is likely to be high on the agenda. Your case should therefore include as many references to risks and their mitigation as possible, such as disruption during the switchover (you could make it clear that you’ll hire a project manager, say). It may well be worth finishing any pitch or presentation you have to make by pointing out that there is a risk in not acting: it could lead to stagnation, fines from regulatory authorities, and more.

Want to learn more about how to make a good case for an accounting system overhaul? Check out our guide.

Tags: