Outgrowing Your Accounting Software?

Six reasons you need to change accounting software

By Darren Cran UK Managing Director of AccountsIQ

As businesses grow in complexity and transaction volumes, some of the typical starter systems like Excel spreadsheets or even the more popular, low end accounting software products such as SAGE, Xero or Quickbooks, begin to creak. Many Finance leaders put off the change, sweeping it under the mat until next month, next quarter, next year while processes become ever more cumbersome.

There are distinct advantages in acting promptly to upgrade systems once the need presents itself. Delaying a move to more sophisticated accounting simply exacerbates the problem, expending time and energy to work within the confines of a system which no longer meets needs.

In this five-minute read, AccountsIQ’s MD, Darren Cran, explains the symptoms of a business which should be looking at more sophisticated accounting and what steps businesses ought to take to ensure the correct decisions are made when sourcing new systems.

Introduction

1. You need a more reliable and simpler method for consolidationYour business has grown so much that you are now managing anumber of separate subsidiaries or branches, some may be remotefrom the main office. Consolidating becomes very difficult to manageusing Excel spreadsheets; it is time-consuming and the results may beinaccurate. Take into account foreign currency; minority interests; and aneed to view sales, purchases and group performance and you have asingle point of failure without the right system.

Once you start using a software platform which incorporates consolidation, you might wonder how you ever managed before. AccountsIQ comes with a consolidation module which saves days and often weeks of time and gives you results you can trust.

As accountants, it’s important to distinguish between simple aggregation software and true consolidation software which includes the entire general ledger; foreign exchange; business analysis (locations, departments, projects, divisions); KPIs; and sales and purchase information. Crucially, consolidation should occur within the raw transactions held within each accounting SQL database, everything being managed from one single platform.

The functionality is out there for practices which are ready to take the next step up in consolidated accounting. Its availability in the Cloud makes this quite sophisticated technology more budget-friendly than ever before.

Outgrowing Your Accounting Software? 2

Six Reasons you Need to Change Accounting Software

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2. You need to improve Month End and move away fromspreadsheetsExcel is a great tool to allow you to extract data from your accountingsystem for analysis and external reports. Turning data to useableinformation gives your business the critical edge it needs to competeand grow. However, relying too much on Excel to manage your monthend means you run the risks of low productivity, duplication of effort,delays and unhappy staff who feel there ought to be a better way.

The great news is that you can move away from spreadsheets to manage critical month end tasks like accruals, prepayments WIP and deferred revenue. By using a month end automated process you can simplify each of these month end routines by setting up rules and automatic postings. Again, software built for the Cloud and in the Cloud means you can enjoy this level of automation for a low monthly fee.

AccountsIQ helped us to move away from the old model of sharing data sets with clients, exchanging spreadsheets and updating them. Now we can work in complete partnership with our clients, sharing access to the same, live information stored in the Cloud.”Gerry McNally, Director, MBSL

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3. Stronger and more efficient reporting would help you makebetter decisionsAre you exporting the usual extracts into Excel each month andbeginning (yet again) the same chopping and changing process to getthe data into a format that can be used to review and make decisions?The more complex your business becomes, the bigger this manual anderror-prone process is likely to be. It also tends to rely on key staff whoknow how to manipulate the data. You might also find you have littleor no time to invest in a better approach. If there is no change, you arelikely to get the same outcome every time.

AccountsIQ has in-built, enterprise reporting capability, delivered through a simple yet extensive library of reports and dashboards. Coding and Analytics are flexible and easy to change over time, giving you the level of reporting you and your clients need, directly from the system, at the click of a button.

Today, it is both affordable and achievable for businesses of all sizes to automate the management of Accruals, WIP, Prepayments & Deferred Revenue. Accountants spend countless hours and days preparing and reconciling these critical month end accounts. Using AccountsIQ’s brand new journalling management system, the entire month end is automated with rules, automation and controls.”Darren Cran, MD, AccountsIQ

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4. Integration, customised to your needs would make yourjob easierThere’s a lot of hype surrounding the concept of integrating businesssystems to create extended automated processes and sharing of dataacross the business. It’s great when it works and it can certainly saveyou a lot of time. However, a common complaint is that standardintegrations available with entry level systems only solve part of theproblem.

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AccountsIQ are Cloud pioneers who have worked very hard with my team and with our clients to get everything as right as it can be. This has enabled our clients to grow with confidence and has allowed us to service that growth and indeed drive it.”

Tony Price, Partner, PwC

“A simple bank statement integration is a good example of an integration that works really well. Most Cloud-based systems now offer this as a standard element of month end processing however growing businesses typically become more reliant on other core systems (e.g. EPOS, Reservation, e-Commerce, CRM and Procurement Systems); the type of integration and business logic that should pass from one system to another is not so straightforward. This is why you need a business partner to advise you and to make these integrations work. When you need more than the simple ‘off the shelf’ integrations, it’s a sign that you need to move to the next level, to a Cloud partner who can work with you to solve these issues.

We knew we had to take a Cloud approach to create the kind of service our larger clients want at a reasonable price – remote access, more efficiencies, less paper, less time. We also need quite complex functionality including multi-company consolidation and multi-currency accounting.”Ian Bremner, MD, French Duncan

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5. Better technology would help you work collaboratively, saving on travel and expenseWhen it comes to the idea of Digital Transformation, it’s not a concept that should fill you with fear. Accountants who move towardCloud-based and mobile technologies see instant savings and there are some really quick wins which will instantly save time and improve efficiency.

Common projects which we help practices put into action every day such as Time and Expense capture, PO raising and Invoice Approval through a mobile platform (delivered to clients and staff) enables real time collaboration - an obvious win for practices when it comes to saving time.

You might also consider using a mobile App to reduce email volumes and allow people to deal with tasks at any time, using a device of their choice. Mobile working will give your staff major user satisfaction and productivity gains. Working on the go avoids time lag from ‘pending approvals’ and keeps everything in real time - a major win for the finance department.

If your software isn't going to be compliant with Making Tax Digital by the deadline this year, you'll need to consider your options carefully.

Make sure you're compliant in time by switching to Cloud-based accounting software.

There are distinct advantages in acting promptly to upgrade systems once the need presents itself. Delaying a move to more sophisticated accounting simply exacerbates the problem, expending time and energy to work within the confines of a system which no longer meets needs.

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Do you suffer from any of these frustrations? Is your technology or are your processes preventing you from providing the best service you possibly can?

It could be time to change.

The acid test is when you cannot improve your processes further because your technology and software is holding you back.”Darren Cran, MD, AccountsIQ

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The finance system should be the leading business platform supporting growth. For this reason alone, the decision to invest in change at just the right time is a responsibility your team should own.

Processes which you have followed for years can be reviewed in the light of your new system and immediately improved. Also, the concept of integrating other business systems in the Cloud opens up a whole new opportunity for efficiency outside of your department’s immediate reach.

1. Future-proof as much as you canSwitching to the right accounting system can make a critical differenceto your business. Therefore, in addition to gaining an importantunderstanding of your business needs right now, it’s also wise to try toplan ahead and predict what your needs are likely to be on a five yeartime horizon, if you can. Consider your growth plans: will you needconsolidation? Are you opening more outlets or branches? What is yourtransaction volume likely to be? Will the software be able to scale? Inthis way, your choice of accounting software can support rather thanhinder your business strategy as much as possible.

2. Cloud versus installedCloud accounting software or Software- as-a-Service (SaaS), offersmany advantages over software that’s installed on your premises. Cloudaccounting software is hosted by the accounting software supplier andtherefore you don’t need an expensive IT infrastructure such as serversand associated licences.

As a result, Cloud accounting software is becoming increasingly popular and there are now SaaS solutions available for bigger businesses. Many are suitable for companies and practices who offer outsourced accounting services to a range of businesses of all sizes. Most Cloud accounting providers charge a regular monthly fee that includes 24/7 access, user support, software upgrades and maintenance. Cloud systems are also useful for practices collaborating with clients because you can provide them with user access; everyone can share the same solution and the same view of the most up-to-date information.

Four Things to Bear in Mind Once You’ve Made the Decision to Upgrade

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3. Get strategic about functionalityUpgrading your software provides a real opportunity to expand therange of functionality that your software provides. Again, by taking astrategic view of your company requirements, you can ensure that thereis the best possible match between functions and business demands.Cloud accounting software solutions for bigger businesses now offercomprehensive features out-of-the-box including:

• Consolidation – for consolidation of financial data to give you acompany-wide view of your business performance.

• Business Intelligence – to create and manage your own defined keyperformance indicators.

• Advanced accounting features – such as budgeting and cashflowmanagement, stock (inventory) control, purchase and sales ordermanagement, and time and expenses accounting for better projectmanagement.

• Productivity features – such as eBanking integration, auto-bankreconciliation, electronic document management, and electronic

• approval workflow.

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4. Work with a Trusted ProviderMany businesses are looking for a software provider they can trust as apartner. Someone who can advise on set up, design, adapting reportsand when to integrate with other systems. This is a service we believe ismissing from most entry level software providers.

At AccountsIQ we ensure that our software is the right fit for your requirements. Our rolling Five Year Product Plan takes into account feedback from our customers and their needs. Our Customer Success Programme ensures every client project is a complete success. Take a look at some of our customer success stories here.

The amount of time tech will buy you to invest in more strategic and valued time with your senior colleagues is priceless.”Darren Cran, MD, AccountsIQ

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If you would like a personalised demo of how AccountsIQ can save you a week every month at month end, simply request a Demo.

Get in touch with us via email sales@accountsIQ.com or Tel 0203 598 7350 and we will be happy to talk to you in more detail about your accounting, reporting and consolidation needs.

Book an AccountsIQ Demonstration

About AccountsIQ

AccountsIQ is a SaaS Cloud-based accountancy and consolidation system for fast-growing, mid-sized businesses. It offers advanced consolidation features, multi-currency accounting and enhanced business analytics. AccountsIQ is currently used by more than 3,000 companies and 25,000 users in 40+ countries.

For more information, speak to a product expert on 0203 598 7350 or email sales@accountsIQ.com

www.accountsIQ.com