Why changing things up is important 

We live in a society that is bursting with increasingly efficient technology and methods that allow the diffusion of ideas, services and goods. Take a moment to imagine how the world would be if people refused to embrace change. Humanity would be far behind its current state, living completely different lives.  

For example, consider the first cars ever built. They didn't have seat belts, they were made from completely different materials, and they had much slower and more dangerous designs. Over the decades, engineers have tested new methods to find the strongest, fastest, and safest ways to build cars.  

To take another example, think about mobile phones. In the past two decades, mobiles went from bricks that could barely make calls to the multipurpose tools of today. True, those older models had classic games like Snake, which you could play for hours on end, but would you still use a first-generation device in an age where so much depends on being able to connect to the internet?  

Although we all tend to form habits and continue things we are used to, we are also extremely motivated to find new and better task-completion methods. We have been doing this from the dawn of time: inventing new things, adapting, adjusting, and becoming better. This has led us to where we are today. 

As a company grows, it will begin to require much more from its software so that financial operations remain successful and efficient. It's important to know and accept when the time comes for a change to avoid wasting time and resources and improve your business's financial health.

The task of switching to a new software platform can appear very intimidating for a company, especially if it is very used to the system that it is currently using. Despite this, upgrading is often a wise investment as it will contribute to the company's success.  

Read five steps to avoiding risks when switching financial management software. 

Who benefits from upgrading financial software? 

A few potential primary and secondary stakeholders who will benefit from upgrading financial management software tools include: 

• CEOs/managing directors  

• Board of directors  

• IT directors  

• Finance directors  

• Heads of departments  

• Members of the finance teams  

• Other 'heavy’ 'users of the systems (such as staff who submit purchase requests, timesheets and expenses and make absence requests)

• Indirect users of the system (such as staff who request information)  

• Customers  

• Suppliers  

• Prospective customers  

• Auditors 

Read how the finance industry is benefiting from cloud solutions. 

The signs that your business has outgrown its current finance software

There are many difficulties and barriers that a company will come across as it outgrows its current software.  

Recognising the signs is the first step to improving your business and moving on to more efficient ways of doing things. Once it's time for change, the sooner, the better.  

Let's look at some of the most common signs that it is time for an upgrade. 

1. Your company is wasting time: Pay attention to how much time your finance teams spend re-entering and rekeying information. It may surprise you how much time is spent doing so. Millions of days' worth of work is spent on unnecessary processes every month worldwide. Although it may be impossible to eliminate this wasted time, a lot of time could be utilised in far more beneficial ways by investing in new software. Automated business software, in particular, saves thousands of hours of repetitive data entry. 

2. You struggle to meet deadlines and access your data: As your company expands, your database becomes more complex and immersive. If you cannot navigate and retrieve information that meets your needs quickly, you will fall behind. The organisation and accessibility of software can easily make the difference between a successful project and a failed one. If your company's financial planning software begins to fail you for this reason, take it as a huge red flag that the time for change has come. Easy and precise access should be available to all members of your company. 

3. The software you are using is inflexible and demanding: The purpose of a software system is to assist the user however they need help. The system should never be an inconvenience. Companies should never have to bend over backwards to make their software work for them, and if this is the case, you can be sure that a shift is needed. Not only will this cause frustration, wasted time, or lost information, but this inflexibility will also cost money. If a program is too limited, something needs to change.   

4. Weak audit trails and inability to see what's going on: Having weak audit trails in your business will put your company at high risk. Risk can lead to huge problems. Accounting software should require entry validation if you want to avoid compliance issues. It's crucial to easily view and track your company's financial accounts to prevent fraud and prove financial validity within transactions. If your software does not allow you to do this quickly, your company is uncertain, which could cost you.

5. Limitations between your multi-company organisation: Not only is it essential to be uncertain how to access information within your own company quickly, but you also need to be able to interact with and understand your neighbouring companies quickly. It should not take large amounts of your staff's time to formulate clear tables of what's happening among your entities. If this is the case in your current accounting system, it is time to consider new options. The best finance software should serve you, not the other way around. 

The risks of using outdated software for finances  

Again, returning to the example of a car, how safe are you without a seatbelt? What are the risks of sticking with an outdated model? You could be fined or cause permanent damage to yourself and others. The same goes for using obsolete software, which could lead to mistakes when manually keying in data. Your audit trails could quickly confuse or stop altogether if no one watches them. Worse, you could make a serious error with someone's personal data, causing a breach and irreparable harm to your company's reputation.  

Finally, as with mobiles and cars, outdated systems will be unable to keep up in the modern world, making it particularly challenging to manage risk and maintain optimal capacity. As the COVID-19 outbreak showed us, businesses with the latest financial and budgeting tools have had the flexibility to work from home swiftly with a minimal drop in productivity.  

Software systems behave in the same way as all innovative technologies. They are constantly being developed into new and more efficient forms. This creates new ways to organise business, using our time and budgets better. New types of budgeting software will continue to be made, and old business finance software will continue to be beaten by newer, better ones.

This is why the business world needs to stay caught up in all aspects. Marketing, technology and all other sectors and departments are necessary. Companies do not want to limit themselves for no reason. 

The best way to select a new software program  

Now that we understand why a company may need to begin using new types of finance software and why it's so important to switch if that's the case, we must explore the available options and which companies they apply to.  

It's important to note that every company's needs will be slightly different and specialised, and financial software picks should be able to support this specialisation. After looking deeper into what is currently available, businesses can determine which option will best fit them.  

The following is a basic overview of cloud-based financial management software. 

Cloud-based finance software 

This is an external system provider that hosts your software offsite. You gain access via a secure internet connection. Software-as-a-Service or (SaaS) is often used when referring to cloud software. This means that this software is accessed on a subscription basis, and as long as you pay for it, you will have access to it.

Cloud-based software is also divided into three main categories:  

• Public cloud: Public cloud is when a company's data is stored and shared in an environment alongside other customers. 

• Private cloud: A private cloud is when a company's service is maintained on a private network built exclusively for that business. 

• Hybrid cloud: Hybrid cloud is a combination of private cloud and public cloud. A hybrid cloud allows a company to keep some data stored privately in the private cloud and some stored in the public cloud. 

Read how cloud technology can give your business a competitive edge. 

Why is cloud-based software going to be the best choice?  

Cloud-based software carries many benefits and maybe the preferable choice in the following circumstances:  

• A company cannot make large upfront payments: Cloud-based financial software is paid monthly, so companies do not have to worry about substantial upfront commitments and agreements.  

• A company lacks technical experts on site: Cloud-based is ideal for those without a specialised team because everything is already taken care of technologically. In some cases, cloud-based services will hurt your budget less month to month compared to maintaining a large enough maintenance team. 

• A company wants remote access to its system: The cloud is the only option where you can remotely access your system. This has several obvious advantages, especially relating to working from home. 

For more on this topic, read why you should choose cloud-hosted software. We also have a handy fact sheet articulating the benefits of moving from on-premise desktop software to cloud-hosted solutions for your financial goals. 

In conclusion 

There are many aspects to consider when it comes to businesses and the finance software they use for money management.

Your business should be able to identify and understand the signs that they have outgrown their current software system. These signs can include wasted time, tasks not being completed on time, information being unavailable or too hard to find, taking too much effort to make software work, weak audit trails, multi-company limitations, and general inflexibility. 

Embracing digital advances in a constantly evolving market and society is essential for businesses to stay ahead of the competition. This starts with Access Financials. 

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Access Financials provides all these features and more to automate accounting and financial management processes and provide an accurate single view of your organisation. 

Reach out to us today to discover the full benefits of these solutions and how they can help your business adapt to ever-evolving technology.