But startups quickly grow up. These companies soon become small- and medium-sized businesses (SMBs), which need more advanced accounting solutions. QuickBooks just won’t cut it for companies that have large numbers of users or need to look deeper into their data using business intelligence tools.
So, how do you know if you have the right accounting program?
Here are nine signs that your SMB has outgrown its starter solution and is in need of powerful financial accounting software.
- Increased workarounds and manual entry: One of the easiest ways to know you’ve exceeded the limits of your current software is when it requires you to create more data-entry workarounds and manual functions. When you’re forced to change your internal processes or conduct business just to make the technology work, it’s time for a change. Remember, your system should work for you; you shouldn’t work for the system.
- You’ve maxed out user access to the software: With QuickBooks, for example, user access capacities are reached around 20 people. After this point, it becomes more difficult to allow access to the software, and that’s a problem. It’s also not acceptable if your system limits the number of transactions.
- It takes too long to get the right support: So many software functions, QuickBooks included, only provide assistance through online forums. Once you reach a certain size, direct contact for support issues is a must-have. You need timely answers, and a phone call or email is the best way for this to take place.
- Failing to meet security requirements and regulations: If your business is expanding and your software constantly needs additional configurations to keep up with this growth, it’s time for an upgrade. These changes quickly become too costly and require too much disruption.
- Insufficient reporting capabilities: Once your company reaches a certain size, its need for actionable information grows exponentially. To make quality business decisions, SMBs need accounting tools to produce necessary reports. They require tools that are flexible to run and generate data for your specific needs, products and services.
- A need for more data storage: If your current software limits the number of files or data that it stores, this is a huge sign that you’ve outgrown it.
- Integration issues: Many companies use several systems to conduct business. This tends to happen for SMBs that expand beyond the nation’s borders or into niche markets. Regardless of the reasons, if software platforms lack compatibility or integration, the need for manual processes increases. That in turn creates errors and slow processing. Integration provides companies with greater insight into their business.
- Lack of quality security: While security is always a concern, it becomes increasingly troublesome for outdated technology. If your company isn’t able to limit user controls to the extent necessary to maintain security, it’s time for a new system.
- Increasing costs for IT support: The price for maintenance, support and software upgrades on your current system add up. Powerful cloud-based systems include the costs for IT services, allowing your current IT staff to refocus their efforts on core competencies of the business.
At the end of the day, your accounting needs should support your company’s structure and goals. What tools do you need to succeed today? What do you need to succeed 5 or 10 years from now? If it’s time for a new solution, remember to seek out software that is both scalable and easy to adopt, with a rich user experience that people are familiar with and able to grow into. Always avoid investing in programming that only serves as a “Band-Aid” solution.
Click below to learn how businesses thrive once partnered with the right financial accounting solution.