As a business grows, its accounting software should have the capability to meet its needs. Be it more product lines, additional clients, new outlets or increase in manpower, the staff must be equipped with the proper IT tools to handle the company’s expansion.

In the case of SMEs, investing in a new software, especially if coming from a predominantly manual method of accounting that relies heavily on spreadsheets and staff filling the entries, won’t be appealing. It involves putting in resources – time and money – to roll out the new system.

But this shouldn’t be a hard choice. A fully automated finance and accounting solution is a good investment for any business as it will save money in the long run. It also gets the job done quickly, extensively and correctly so no time is wasted. What’s more, it supports the company, increasing productivity and offering a clear picture of how the business is doing.

Before shifting to a new system, watch for the telltale signs that indicate the business has outgrown its current accounting software. Know the various indicators, find out which applies to one’s business and gauge how important these are to the company today.

Doing more manual tasks that take a lot of time?

If employees have to input data into spreadsheets and duplicate the data because the company works with multiple systems, then the accounting system is counterproductive. Instead of hiring extra staff to manually key in data, which also entails added costs, consider deploying a comprehensive accounting and business information software that gets the job done with less people and less time. It should be able to support the unique needs of the SME and has the ability to cope with the demands of the business as it grows. The goal is to be more productive and make sure that no time or manpower is wasted in replicating data entries.

Dealing with different business systems?

Aside from resulting to work duplication, multiple systems often cannot provide timely financial information because data has to be collected separately and then analyzed before it is put together in a report. As today’s market moves at a fast clip, it is key that such information be delivered to management on time. Likewise, the availability of advance business and mobile technology make it affordable for SMEs to invest in an integrated system that stores data in just one location. This increases business efficiency and enables the company to seize opportunities for growth. An integrated accounting and business information software should also be able to handle SMEs with several sites or business units and those that transact in various currencies.

Reports don’t get done fast enough?

By now, it is clear that the company needs an upgrade when so much time is wasted looking for the financial data than analyzing it to help management make informed decisions. When generating accurate reports in real time becomes a challenge, the SME should consider shifting to a comprehensive accounting solution. Accounting is not just about automating bookkeeping and recording financial data. It should be able to show which business units are making money and which ones are below target, as well as who are slow paying clients and who have outstanding balance. It should also be able to generate profit and loss reports, balance sheets, etc. instantly. Accounting software these days have superior reporting capabilities that give business owners the visibility to monitor the company’s performance and the insight to make critical decisions so they can act fast.

Making adjustments for inefficiencies or filling in the gaps?

If it takes longer to post a sales invoice or generate a regular report, the current accounting system cannot seem to cope with the increased business activity in the company. More so if employees are making do with what they have. Besides managing more tasks, the accounting software should record all transactions and make it easy to access historical data, plus provide an audit trail for greater transparency and data integrity. If these functionalities are missing in one’s current system, it’s about time to make some changes.

At the end of the day, when it comes to a point that the SME demands more from its business IT yet its accounting system is unable to deliver and no longer fits the purpose, then it is time for an upgrade.

Ostendo operations software integrates directly with a number of the popular accounting software solutions to create your own complete ERP software solution. These include QuickBooks Online, Xero, Autocount, Sage Pastel and the MYOB accounting product range MYOB Accounting, Accounting Plus, Premier and Enterprise using the MYOB Read Write ODBC Driver.

The advantages of this approach are;

• No need to change your accounting system or learn another software.
• No change of relationship with your accountant.
• No change of financial reporting.

Call us at 9457 358 for more information about Ostendo Operations Software