5 ways an outdated accounting solution could be putting your business at risk

Did you know that the average office worker in the UK is thought to lose up to 21 days every year thanks to slow, outdated technology that’s just not fit for purpose anymore? That’s a pretty sobering statistic, isn’t it? And we’re pretty sure that if you dug deeper into this data, you’d find that accounting software are one of the biggest culprits when it comes to creating such a sizeable dent in productivity.

Upgrading or replacing an accounting system that’s been in use for quite some time can appear to be a daunting prospect (not to mention an expensive one). So if you’re trying to convince your Head Honcho that it’s time to replace your existing software, present them with this list of five ways that your slow accounting solution could be putting your company at risk.

Once you’ve outlined the damage that inadequate accounting systems could do to their business, they’ll soon sit up and take notice!

 

  • If you’re having to spend a lot of time inputting or adjusting information, you’re increasing the likelihood of human error.

If you feel like you’re spending more time collecting and double-checking data than you should, it’s definitely time to consider upgrading your system. Leave things as they are, and you’ll not only lose too many hours trying to keep your figures up to date, you’ll also run the risk of calculation errors and inaccurate forecasts, which could cause multiple problems for you further down the line. Your software should be able to keep track of payments, outgoings and tax bills automatically, based on the figures that you put into the system.

And if you’re running an accounting system internally but are still tracking most of your work with post-it lists and manually updated spreadsheets, the software is clearly not doing its job. By taking this haphazard approach towards your finances, you’re running the risk of misplacing vital information. At best, this could compromise your company’s reputation, but at worst, you could end up in big trouble with the data regulators if your numbers were to fall into the wrong hands. Just a thought.

 

  • Staff can’t connect to your system remotely, which is affecting how and when they can get their work done.

If you’re running an outdated accounting platform – and particularly one that’s hosted solely on-premise – locating and updating information is likely to be a real chore. Instead of being able to create and share invoices, manage purchase orders and event submit expenses on the go from the mobile device of their choosing, your sales team are having to come back into the office and log on to their PC or laptop just to update the system. This is not only frustrating from their perspective, it’s also likely to slow down response times for clients and suppliers, too, which will put your reputation on the line.

 

  • You’re not benefitting from up to date security features, which is leaving your company data exposed to hackers and fraudsters.

Older accounting solutions are more susceptible to data hacks. It’s a fact. What’s more, if your accounting system is outdated, chances are the provider has stopped creating security patches for it – so you’re pretty much guaranteed to succumb to a cyber-attack at some point in the future. Thuis is not what you need when you’re about to make that big sale.

 

  • You could be losing out on sales to competitors who are using better, faster internal systems.

Why would a customer want to work with a business that takes an age to process anything? People are so used to getting what they want, when they want it, with minimal wait time. If your accounting solution doesn’t meet their expectations, and they’re having to wait a long time for information (or they’re receiving the wrong information) they’ll head elsewhere to a rival company that has invested in a tool that makes life easier for everybody.

 

  • Bad data management is leading to poor business decisions.

Your company’s accounting solution should be able to present you with accurate, up to date information about your organisation’s financial affairs. And you should be able to manipulate the data so that it displays exactly what you want to see, when you want to see it. If you or your Head Honcho cannot access the information – or it’s not being processed by the system to begin with – how on earth can you make high profile decisions that will have an impact on your future performance?

By now, we’re sure we’ve convinced you that outdated accounting solutions are a big no-no for any responsible organisation. If you need help choosing the right accounting software for your business, remember that the NAVExperts are always here to help. Just get in touch with us and we’ll happily discuss your requirements in more detail.

About the author

Sue Wright

Business Development Manager, Sue, has been part of the team since 2015, having previously worked in the technology sector for 7 years. Her role sees her running the Sales and Marketing teams as well as supporting the Account Managers on a daily basis.

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