5 Signs Your Accounting System is Failing You in Financial Services
Your company might be growing, but is your current accounting software up to the task?
That accounting system you rely on to manage finances and operations has gradually become a barrier to growth and efficiency. Sure, it’s super easy to keep on using the same old program — BUT here’s the thing: The most successful businesses recognize the difference between doing what’s easy and doing what’s right. So if you need a little help determining if your accounting system is slowing you down, take a look at the 5 signs your accounting system is failing you:
Sign No. 1:
You’re on an Old Accounting System Release
With so many pressing responsibilities, it’s no surprise that many finance departments aren’t necessarily laser-focused on the state of their software infrastructure. In fact, it’s not uncommon to find companies that haven’t touched their accounting systems for years. But that benign neglect can mask significant risks.
An outdated—perhaps even unsupported—software platform can translate into reliability and downtime problems and security vulnerabilities. And the costs of maintaining a legacy system quickly increase.
Sign No. 2:
You’re Held Back by Disconnected Systems and Processes
Finance works best when it works in seamless collaboration with other departments and functions. Unfortunately, legacy accounting systems often aren’t well-integrated with other enterprise tools and systems —including commercial applications and custom-developed software. That often leaves you trapped in manual processes, spreadsheets, cumbersome workarounds, and slower workflows as you manage conflicting formats and rekey the same data in multiple systems.
Sign No. 3:
You Can’t Keep up with Business Expansion
As you add business units and expand into new markets and geographies—or even add entirely new lines of business—the burden on finance can quickly become overwhelming. Soon enough, you’re handling new subsidiaries with more currencies, tax jurisdictions, regulatory frameworks, sales channels, and product costs. And if you’re growing through acquisition, the added complexity isn’t gradual—it’s immediate
Sign No. 4:
New Business Requirements and Regulatory Compliance
Are Difficult Obstacles
To keep up with customer demands and expectations, many businesses are experimenting with new revenue models and alternative business structures. One of the most important new developments is the subscription business model, which is increasingly popular across many industries from software to services. However, that’s placing new demands on finance, because the billing and revenue recognition requirements for subscription businesses are more complex.
Sign No. 5:
You Aren’t Able to Fully Track Your Business
Business success depends on the ability to see what’s happening in all areas of your business, especially if your operations or market conditions are changing rapidly. You need a holistic view of everything from bookings to available capacity to inventory levels and, of course, financial metrics. But you can’t make informed, timely decisions if it takes weeks to assemble, present, and analyze that data.
Today, more people in your organization need better reports, and they want those reports faster than ever in real-time dashboards that show key metrics and enable you to drill down for details.
Have questions or concerns, feel free to contact us. We’ve helped tons of other companies upgrade to Sage Intacct, and welcome the opportunity to help you too.