Seven signs you’ve outgrown your finance system
There are plenty of finance systems out there which are great for small businesses. They are simple, easy to use, and are often available for free or for bargain-basement prices. But, as organisations grow, requirements change. We take a closer look at the seven signs you’ve outgrown your finance system so that you can identify the warning signals early on.
1. Increased reporting demands
As an organisation grows, so do the reporting demands. The need to analyse costs and revenues likewise increases and reporting in group organisations must span multiple lines of business and operational departments.
If your finance team cannot thoroughly analyse the financial information in your current system, then it cannot handle the complexity of your organisation - a key sign you have outgrown it.
2. Rising spreadsheets and workarounds
Often, when business demands become more complex, a myriad of spreadsheets and workarounds appear. With more intricate reporting and analysis, but just a manual workforce, efficiency lacks and reporting inaccuracies creep in. Fundamentally, your finance system is doing more harm than good.
3. Insightful management information disappears as you grow
As an organisation grows, so does its complexity and the requirement to analyse data. If your finance system doesn’t provide the reporting flexibility and analysis you need, then your organisation is suffering from a lack of insight, impacting the quality of decision-making. This is a critical sign that you have outgrown your finance system.
To avoid more spreadsheets, and to reduce the amount of unproductive time spent manually producing reports, look for a system with multi-dimensional reporting to facilitate in-system self-service reporting.
4. Staff struggle with remote working
Just as your business evolves, so should your working practices. If you can’t access your financial information from anywhere at any time, your organisation becomes less responsive to its customers and suppliers - a crucial sign you have outgrown your finance system. Look for a true cloud multi-tenanted solution to solve this, as all users can access the system whenever from any web-enabled device.
5. Reporting across multiple locations and entities is next to impossible
In multi-entity organisations, handling inter-company transactions and getting to grips with reporting for each entity and your consolidated position is essential.
However, if manual month-end processes mean your organisation is operating with management information that is out of date, this is a definitive sign that you have outgrown your finance system. Select a finance solution with automated processes and real time reporting to ensure you are always working with the live numbers.
6. Multiple currencies are not available
If your organisation expands into new geographies and therefore multiple currencies, but your finance system is unable to transact, report, and consolidate in different currencies, then you have outgrown it.
Instead of using error-prone spreadsheets to accommodate these needs, look for a finance system with a multi-currency functionality built-in, and an out-of-the-box integration to ensure exchange rates are always up to date.
7. Upgrades and maintenance become major disruptions
If you’re choosing to use multiple systems and spreadsheets, the IT support, consulting fees, and upgrade fees always add up.
All these are signs you’ve outgrown your finance system. As your organisation grows, it’s needs and ambitions grow with it; so look for a highly configurable system which will continue to meet your requirements.
Opting for a true cloud system also means you will receive instant access to the latest upgrades, ensuring the technology you select is future-proofed.
Find out more about how Xledger can help you maintain the same efficiency in the office - anywhere, anytime. Request a demo and we'll go through the functionalities in Xledger that are important to your company. Your demo will take 20 minutes.