2020-06-09 12:22:11accountantsEnglishThis article points out six warning signals that its time your accounting firm upgrade its accounting solution.https://quickbooks.intuit.com/in/resources/in_qrc/uploads/2020/06/Business-is-Ready-to-Upgrade-its-Accounting-Solution.pnghttps://quickbooks.intuit.com/in/resources/accountants/upgrade-business-by-accounting-solution/Business is Ready to Upgrade its Accounting Solution %%sep%% %%sitename%%

6 Signs Your Business is Ready to Upgrade its Accounting Solution

6 min read

Imagine its that time of the year when your accounting firm is loaded with filing annual tax returns for your clients.

There is already too much to be done in terms of reconciling the client accounts, preparing the financial statements, tax returns, etc.

Now amidst all of this, if you face the challenge of your accounting software crashing frequently, or demanding too much time in terms of manual data entry, switching between apps for various accounting tasks, it is certainly a warning signal for your accounting firm.

This is because you are working for your accounting software rather than the accounting software serving you and making your accounting tasks easy and seamless.

On the other hand, many of the accounting firms still manage the client accounts using tools such as excel sheets and prefer maintaining huge files for client documents.

Thus, if you are spending too much time on bookkeeping with your current software or still do not have accounting software to make your accounting practice efficient, its time to make a shift.

This article points out six warning signals that its time your accounting firm upgrade its accounting solution.

Little Or No Automation

Challenges With Current Software

Sending Recurring Invoices Manually

You have a large number of customers whom you render the same service month by month. With your current accounting software, you are manually sending invoices to these same customers whom you provide the same service each month with little or no change.

Manual Data-Entry and Reconciliation

Your current accounting software does not provide you with the functionality of connecting the bank accounts with your accounting software, thereby making you manually enter data.

In addition to this, you spend a lot of time at the end of every month reconciling the bank statement of your client with the data recorded in the accounting software.

No Expense Receipt Management

You still use physical copies of expense receipts and upload the data manually in your accounting software.

How Upgraded Accounting Software Can Help?

The new generation cloud accounting software allows you to sen recurring invoices to your customers and sends them payment reminders automatically.

In addition to this, you save time and avoid manual data entry since the accounting software connects with your bank accounts and automatically fetches your banking transactions in your accounting software.

Further, the software enables you to generate GST ready accounting reports that you can easily send to your customers within no time.

Software Demands Too Much Time

Challenges With Current Software

Data Entry Takes Majority Time

Since your current accounting software cannot be connected to your bank, you have to spend a lot of time uploading accounting data manually.

Invoicing and Payroll Keep You Tied Up

Sending invoices manually to a number of clients consumes a lot of time. Likewise, since your current accounting software does not integrate a third-party payroll facility, keeping track of employee working hours, calculating their salary manually, etc makes the payday very tedious.

How Upgraded Accounting Software Can Help?

The entire idea of having an accounting software is to save you time so that you can invest the same time for other core activities of your business.

Therefore, if your accounting software does not help you save time, it’s certainly a red flag that you need to upgrade to an advanced accounting solution.

Today’s cloud-based accounting software helps you save time in multiple ways. For instance, you can send recurring invoices, set payment reminders, capture expense receipts, link your bank accounts to your accounting software to avoid manual data entry and generate GST-ready reports and send it to your clients on-the-go.

In addition to this, cloud-based accounting software comes with third-party app integrations that make your accounting tasks easier.

For instance, a third-party app for payroll gets integrated with your accounting software thereby preventing you from switching between the apps and saving you time.

No Support For Multi-Currency Transactions

Challenges With Current Software

With the internet providing global connectivity, you and your clients can easily take the benefit of going global with your business.

Unfortunately, if your current accounting software does not offer a multi-currency feature to bill your customers, vendors, denote price, banking transactions, credit card accounts, etc you are certainly losing a good business opportunity.

How Upgraded Accounting Software Can Help?

With advanced accounting software, you can assign multi-currency to your bank accounts, credit card accounts, bills receivables, bills payables, prices of various items, customers, and vendors.

This enables you to take global business opportunities, increasing your client, and foray into new markets.

Limited Third-Party Integrations

Challenges With Current Software

Separate App For Various Tasks

For instance, your current accounting software does not integrate with your payroll tool making you switch between the apps and manually entering data with regards to the employee working hours and salary details.

Limited Apps Leaving Less Scope For Automation

Since only a handful of third-party apps integrate with your current accounting software, it leaves less room for automating various tasks.

For instance, you have to use separate apps for expense management, payroll, inventory, etc. that make you end up spending more time in managing accounts despite having an accounting software at your disposal.

How Upgraded Accounting Software Can Help?

There are a number of apps available that make your accounting tasks seamless. The advanced accounting software collaborates with a number of app developers so that it can be seamlessly integrated with the accounting software giving you the flexibility to work with apps that you are comfortable working with.

Third-party app integrations for expense management, inventory, payroll, etc. give you time to concentrate on your core business activities as these get seamlessly connected with your accounting software preventing you to:

  • use separate apps for separate tasks and
  • Manually entering data in your accounting software.

No Frequent Updates

Challenges With Current Software

This is a serious challenge that needs attention as your accounting data is exposed to cyber-attacks because your current accounting software is not being updated for advanced security.

Likewise, the government rolls out numerous tax changes such as new GST returns which if not upgraded would not let you generate reports that your customers need.

Thus, you lose out on the latest functionalities that other advanced accounting software offer that can make your accounting and bookkeeping practice way more efficient and seamless.

How Upgraded Accounting Software Can Help?

The current day, advanced accounting software regularly releases software updates for security and the latest accounting features.

These updates not only make your accounting data safe but also give you the benefit of new-age functionalities, thus saving you time and taking your accounting practice to the next level.

For instance, with the roll-out of new GST rules, current-day accounting software simultaneously incorporated changes like GST return reports, e-invoicing, etc.

No Mobility

Challenges With Current Software

With remote working becoming the new norm, it is essential that your accounting software provides the functionality to manage your client accounts anytime, anywhere.

If your accounting software requires you to be bound to your desk, it is a red flag indicating that its time to upgrade.

How Upgraded Accounting Software Can Help?

With the advanced cloud-based accounting solutions, you can get paid faster by creating and sending customized invoices to your customers from any device such as your mobile, tablet, etc.

Similarly, you can track data such as sales, generate accounting and GST reports, and send it to your clients from anywhere.

In addition to this, you can collaborate with your remote team, partners, etc. enabling them to log in simultaneously and work with the client data online.

This enables you to enhance your team productivity as you can assign roles to your team members, give them tasks, and track their activity so that work is completed and deadlines are met.

 

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

The Emergency Credit Line Guarantee Scheme

By Pavan Sharma, Partner at BCL India. It has been slightly over…

Read more

How to Structure your Modern Accounting Firm?

In this article, you will learn: How to Structure Your Accounting Firm?…

Read more

Best Ways for Accountants to get Referrals

Getting clients through referrals is a powerful way to boost sales and…

Read more