Small and midsized businesses (SMBs) have a variety of options when choosing accounting software. As you evaluate solutions for your company, avoid the common pitfalls that undermine the potential value and ROI gained from an implementation.
Assuming you have limited IT and accounting resources, you’ll want to set your sights on simplicity, both today and as your business grows. The best way to avoid making mistakes in your selection process is to collaborate with a value-added reseller to prepare you for product evaluations and help you make the appropriate choice.
Here are 5 mistakes to avoid when choosing accounting software.
Mistake #1: Failing to Document Goals and Challenges
What are you trying to achieve with new accounting software? To fully answer this question, you must recognize that there are two areas to address ─ the challenges you face now and the goals you set for improving future performance.
To document the challenges, interview accounting personnel and others who interface with accounting. Both groups will be willing to voice their grievances with the current system/processes; your initial goals should stem from the shortcomings they present. One goal, for example, may be to streamline quarterly and annual tax reporting, as it’s a process that burdens people across many departments.
Mistake #2: Seeking the Cheapest Solution
You want an accounting software solution that offers broad functionality, industry-specific depth, and cost-effective scaling in addition to well-designed integrations with business intelligence, customer relationship management, and other systems. Choosing a solution based on a cheaper price tag will only be cheaper in the beginning – you’ll pay dearly later with poor business performance.
Mistake #3: Purchasing On-Premise Software
Growing businesses need remote workers, mobile employees, and dispersed partners to view data and provide input wherever and whenever it’s convenient; choosing an on-premise solution prevents you from enabling those modern business practices. In high-performing organizations, employees and partners need system access around the clock, which is impossible without a system that resides in the cloud.
Mistake #4: Assuming Database Integration is Easy
Understand where your critical data resides, and, more specifically, the type of database your IT team plans to maintain and interface to the new accounting system. If the software and database can’t provide fast backend performance, your system and processes will be slow. Most modern accounting software packages perform very well with MYSQL database and other popular databases for the SMB segment.
Mistake #5: Ignoring Security Capabilities
Hackers increasingly target small businesses because they sometimes provide a back door into large companies with valuable data, and you don’t want your business to be the cause of a major security hack – it could result in legal action, liability damages, fines, or worse. The good news is that modern accounting systems, when implemented correctly, protect your data with role-based security capabilities.
A qualified accounting software reseller can help you avoid making mistakes in the selection process by guiding you through preparation, evaluation, and implementation. For more information, contact Southeast Computer Solutions today.