What are the signs of poor finance software for expanding firms?

Finding the right finance software should be an important aspect of any growing firm’s priorities.

From the benefits that it can offer your supply management process to the way that it can help you improve your data collection responsibilities, finance software can deliver all sorts of plus points. This article will explore what the role of finance software is to a growing firm, and how it can best be harnessed to help enhance your growth.

Project management

For an expanding firm, the main priority is likely to be hitting goals on projects. Whether you’re opening up a new office of a service business and are planning to hire new people to meet client needs or you’re simply launching a new store, monitoring how close you are to your goals is essential.

Tracking project costs from your mobile is a good way to avoid overruns, while fully-costed contractor management from your desktop should be there as standard. If you aren’t able to do these through your finance software, then it may well not be fit for purpose – and it may be a major red flag that now is the time to switch packages.

Data collection is poor

Proof of concept is an important goal for any growing firm: if you’re not able to demonstrate that your new expansion has worked, then you may quickly find that you’re unable to secure investment or take meaningful decisions. How can you begin to answer this question in a rigorous way without having access to the sort of visibility and reporting capabilities which let you see how you’re doing? In short, you need to get good data collection techniques in place before you can do that.

By using software that integrates and centralises data from all teams and provides a single version of the truth, you’ll quickly find that you’ve got the information right in front of you to take a considered view about how your firm is performing.

Obligations are unmet

Whether you’re a well-established business or a new subsidiary, you’re always going to have obligations when it comes to regulation. Expansion can cause these obligations to change: you may find that you are pushed over the value-added tax (VAT) threshold, for example, and that you are now suddenly liable for paying extra tax and using Making Tax Digital-compliant software.

For that reason, your finance software should always be smart enough to be able to identify what you need to be doing in order to stay on the right side of the law.

If your firm is in the process of expanding, then it’s important to be responsible when it comes to finding the right software for your needs. From the way that it can help you meet your obligations under the law to the impact that it can have on your data collection techniques, cost control, and profitability, there are all sorts of reasons to prioritise investment in financial packages that help accelerate the process of growth.

For a deeper look into the topic, check out our whitepaper on the top tell-tale signs you’ve outgrown your accounting system.