Business accounting management is one of those things that you know you need but don’t necessarily want to get into or are too overwhelmed to do so. Since you opened your business, the system you’ve been using works, but is it the best for your needs now? Do you find yourself trying to work your business around your account management methods, or do your account management SOPs work with your business?
It can be hard to let go of a legacy platform, but it can eventually cause more harm than good. If you’re unsure if you need a change, check out our five signs your current system may be outdated.
5 Signs Your Business Accounting Management Is Outdated
1. It requires a lot of manual work
Over 40% of American SMBs say they spend more than 80 hours a year on accounting activities. While this may not seem that much, it turns out to be 10 business days a year. The first step to evaluating your current accounting methods is to try and estimate how many hours it takes you to gather the correct information, whether through software, in a spreadsheet, or even in a ledger. Include the amount of time you may have to text, email, or call others to get information about their spending or purchases made for that month.
It’s important to keep in mind that there are two big things your system should do for you:
- Reduce the amount of time you spend a month reconciling and tracking down the things you need.
- Automate repetitive tasks to help increase efficiency and decrease human error
If your accounting software does not help you in these two significant ways, it may be detrimental to your business. An abundance of manual work increases the workload on you and your employees, preventing productive activities like getting more business, ideating about new services, or researching industry trends to stay up to date.
More manual work also increases the chances of errors that can impact your business's finances. If you find a need for a lot of time dedicated to data entry in your accounting system, it’s time to find a better solution.
2. A lack of accessibility
In a world increasingly run by data, it's challenging for an older accounting management system to handle it all. You must scale with a growing business' needs. This becomes evident when you or your accountant sits down to work on finances and spends most of their time tracking down important information, receipts, and answers to questions.
Suppose you feel that the business's financial management is becoming challenging due to a lack of insight or accessibility to important documents. In that case, it means your accounting system is obsolete. You will need to replace it with a more robust bookkeeping system that allows you to manage your finances and inventory more efficiently.
3. A lack of integrations
You’re likely using more than one platform to run your business. If you’re doing data entry and invoicing manually because the systems for these two operations do not communicate with your accounting software, it’s time to update!
If you’re working with an older, legacy platform or system, it may not be able to connect with the other platforms you use, which, again, causes more manual work.
4. It doesn’t have a Mobile App
Smartphones are part of our daily lives, in both a personal and professional sense. They allow business owners to access their data and fundamental information anywhere from the worksite to the workshop.
Another important thing to note about mobile apps/access: 169.3 million people in the US use online banking apps. This means that your customers are mobile, but your competition is, as well. If you cannot use mobile banking or financial service apps, your competition probably is, and their clients thank them for it.
5. It’s incompatible with the way you do business
You may be working from a worksite or have other designers or members of your team in disparate places, working on different projects. Because of this decentralization, there must be a more seamless way for you to keep track of your projects and their budgets no matter where you, or your employees, are.
People who are used to using apps and systems with exceptional UX/UI designs have less patience and tolerance for outdated tech. With ever-evolving client demands, it’s also essential to do business on the go and with easy and efficient features to help you have the most important information just a few clicks or taps away.
Your accounting software probably needs an upgrade
If your accounting management tools do not have mobile capabilities and lack the features that help reduce manual tasks and increase budget visibility, it’s no longer the right system for your business.
With plenty of accounting tools available, you might wonder which one is right for your business. You don't want to end up with another tool that solves one issue but creates another. To make things easy for you, here are some aspects that you need to look into for your new software:
- User-friendliness. Is the software easy to operate and understandable? Does it provide enough material to help you use it effectively? Is there a steep learning curve to using it?
- Packages. The different packages that the accounting software offers, the features, and the pricing they are charging for each package. It is important to note this since it can hold more importance as the business scales up.
- Support. Learn how helpful their customer support is in resolving issues. The last thing you want is to spend hours tracking down help when something has gone wrong and needs to be fixed ASAP.
Once you determine what accounting tool meets your specific needs, you can take the necessary steps to implement it into your structure and begin to alleviate your business accounting management challenges.
Does Vergo work with your accounting software?
Vergo has a few excellent advantages for accounting for your business.
- Easy to set up. Once your application is approved (no credit check required), all you need to do is download the app, fund your account, and you’re ready to go!
- Visibility. Because Vergo has a mobile app, you can see your spending details anytime, no matter where you are, as long as you have your smartphone.
- Accessibility. With just a few taps, your information is accessible and easy to read. Organize your clients into projects and see individual spending so you can check and see where you are budget-wise.
- Integration. You can fund your Vergo account through accounting software like Quickbooks!
- Mobile access. Vergo is a mobile app! You can access it anywhere as long as you have your smartphone.
It’s important to know whether your system needs a total overhaul or an additional tool that will upgrade your current process. Once you’ve checked for the five things listed above, you’ll be at peace knowing you have what you need to help your business on track and able to grow.
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