Outgrowing your accounting software is like wearing pants. No matter how much you try to get them on they just won't fit over your growing stomach. As your business grows you have to update procedures, systems, and software. A simple accounting software solution will no longer fit your changing needs. How do you know it's time to upgrade your accounting software?
It definitely isn't time to upgrade when you have outgrown your accounting software. To succeed in business you must have the foresight and ability to plan what needs and obstacles your small business will face around the corner. Lack of planning puts your business at risk.
The following factors upcoming in your business necessitate the need to review your accounting software and plan your upgrade:
1. Growing Customer Base: When you have a small simple business the invoicing and tracking customers is easy to monitor. With success comes a growing surge of more customers. Depending on the rate of customer growth, consider upgrading your accounting software to better manage your customers.
2. Deciding to Expand: Whether you want to increase the number of locations or projections, the decision to expand brings about new levels of complexity. To ensure your expansion goes smoothly, plan beforehand to upgrade your accounting systems to meet the need of rising complexity.
3. More Employees: A simple one person or small staff business will get by with basic accounting software. As your employee base grows, staff members will need greater access and sharing of key data across the network. The increase in staff will facilitate the need for an upgrade.
4. Specific Needs: As your business grows the basic accounting software will outgrow your need for more specific data on your type of business. A consulting firm may need greater project management and job costs beyond the essentials of accounting. A more customized approach will better suit your business.
The financial side of running a small business is essential to profitability and success. Keeping on top of your accounting needs cannot be overlooked. Work with your key accounting advisors and when upgrading to greater more complete software systems use an experienced team to aid in the integration. In the end, your staff and customers will handle the change with greater ease.