If you’re anything like the majority of businesses out there, you probably started out with the most basic or essential software that you needed at the time. Whether you’re working with an accountant or managing the finances of your business internally, having an accounting software that can manage your data correctly is critical.
Many find themselves using additional applications to include other aspects of your businesses such as contact management, call logs and even appointment managing; and they aren’t alone. A number of businesses use other applications to handle other aspects that their accounting software simply won’t handle.
What if however, you’ve simply outgrown your current accounting software? What if there were other accounting solutions that could provide software with the capacity and functionality to handle other operations within your business? How do you know it’s time to move on and try another accounting system?
Signs Of Outdated Accounting Software
Here are just a few different signs that show you’ve outgrown your accounting software and you could be in need of something with more capabilities.
Accounting Software Running Slow
This is perhaps one of the most common indicators. Just like your laptop or desktop would begin to run slow if it were overloaded with too many applications running for its own capabilities, so too would your accounting software. Take QuickBooks as a prime example.
This basic accounting software, used all over the UK, is fantastic for those with under 1000 transactions per month. Begin to go over this however, and that’s where the software begins to struggle. If your current software is beginning to slow down then it’s likely you’re outgrowing its capabilities and it’s time to move on.
Accounting Reports Aren’t Of Benefit
It’s one thing to run a report that gives you the financial position of your business. Most accounting software can handle this but what happens when you want more in-depth report regarding what’s actually influencing your financial position? From a shortage of stock or the total opposite? Perhaps excessive stock has resulted in discounted items, which have been written off. Maybe your marketing campaigns simply aren’t successful?
You may have tried using other methods of gathering this data, such as spreadsheets, but how up-to-date is the information you have in front of you? How long is it taking staff every month to update? If you’ve found yourself at this point, then it’s time to invest in an ERP solution, such as Microsoft Dynamics 365 Business Central.
Heavy Reliance on Excel
As mentioned previously, many people tend to turn to the likes of Excel spreadsheets when their accounting software struggles to keep up with their needs. Accounting software is designed for a specific purpose – accounting. Other needs such as handling inventory management is generally beyond the basic accounting software capability. While using Excel spreadsheets may seem like the easy solution right now, it can pose a number of problems in terms of outdated information or simply time managing them.
This could end up costing your business more in the long run. There’s also the issue of human error in terms of inputting information into your spreadsheets. This heavy reliance on Excel is a huge indicator that it’s now time to upgrade your accounting solution..
If you’re a small team working in a single location, you may find you can just about get by with the help of basic accounting software and a few spreadsheets. This is simply down to the fact that everything is close enough to the action and all in one place. As a business grows or acquires added locations however, you’ll find information very quickly becomes buried. Even a small business may rapidly feel the frustrations of needing better software in order to access the information they want.
It’s also worth considering things such as traceability. This can be lost when multiple systems are being used to monitor various areas of the business. Whether you’re using a mix of spreadsheets and word documents as well as startup accounting software, it’s a common side effect of using accounting software that simply can’t handle the task in hand.
Looking For More Capable Accounting Software In The UK?
Microsoft Dynamics 365 Business Central gives you complete and varied levels of financial management. It offers the most basic functionality such as purchase ledger and cash management all the way through to the most complex of functionalities such as accounts schedules and detailed financial reporting. Here are just some of its features:
- General Ledger – the Microsoft accounting software from NAV Experts gives you the ability to set up a company and post to general ledger, chart of accounts as well as VAT facilities and source codes. This list isn’t exhaustive.
- Accounts Schedules – consider this as financial reporting that packs a punch. The Accounts Schedules allows you to extract only the most essential business data for budgets, cash flow and cost styles into your financial reports to ensure you’re looking at what you need and automatically send them at a specific time.
- Budgets – the solution we offer here at NAV Experts allows you to print a balance that shows the variances to the budget down to the percentage. You can work with multiple budgets at any one time, import and export to Excel and use all the functionality available in both pieces of software.
- Cost Accounting – gain total control and provide visibility and insights into budgeted costs and actual costs at the click of your device. Cost accounting will match cost information with general ledger and then use the information gathered to allocate them to different cost centres and objects.
- Cash Flow Forecasts – this module will allow you to create a prediction of how your liquidity is likely to evolve over time. By using your cash receipts and your cash disbursements, you can show a direct cash flow forecast.
- Fixed Assets – last but not least, keep track of fixed assets such as property, machinery and other equipment. This module allows you to post fixed assets as acquisitions, depreciation and appreciation. This is particularly beneficial for international businesses that require multiple depreciation methods.
For more information on our business management software here in the UK, simply contact us today.