The Ultimate Guide to Streamlining Your Accounting Processes with Software Solutions

No two businesses are the same. Several software providers market their product as the perfect solution for every business – the reality is that the nuances and individual characteristics separate each and every system. These nuances are often hidden, but we’ve made it our mission to advise on the best systems regardless of name-value. So, here’s our guide to streamlining your accounting processes with software solutions. No specific names or recommendations, just core features and functionality you should keep an eye out for.

Situational Analysis

In order to improve your processes, you need to understand your current position. Often, businesses are too close to the problem to notice and it’s easy to remain complacent. If you’re looking for big results, you need big changes. Equally, you may believe the accounting system is an issue, when in reality, the system isn’t reaching its full potential. Establishing a picture of your current position is crucial, and once this picture has been painted, you can move onto the next step.

The foundation

The accounting system is the foundation of your finance department – any structural oversights and the entire department could collapse. When in the market for an accounting system, it’s important to consider 5 key areas:

• Transaction Volume
• Tracking Categories
• Cost/Pricing Structure
• Integration Potential
• Scalability/Usability
• Transaction Volume

Not all systems are built the same. Some have transaction limitations, and if your business has a high transaction volume, you need to take this into consideration. If you don’t, the system may start misbehaving and cost your team valuable time. There are ways to subvert these volume restrictions, so if a system is perfect in all other regards, it’s not a make-or-break issue.

Tracking Categories

Depending on your reporting requirements, you need to assess the number of tracking categories the accounting system has. You may discover that you need to utilise dimensions, and therefore a larger accounting package may be a better fit. Our advice? Take into consideration the number of tracking categories you currently use and re-imagine the way you report on your statistics. There could be a better use of your tracking categories, or you may need more than you currently use. The goal here is to create the reports you need for the foreseeable future, not just the reports that have helped you get by.

Integration Potential

The next consideration is the integration potential. Most businesses have industry specific systems that are crucial and specialised, and these should integrate with your accounting system. There may or may not be a direct integration, and if the latter is true then middleware may work as a patch. If, however, you’re drastically looking to alter your systems, you may find that there are alternative operational systems that not only integrate with cloud accounting systems but can improve your operational processes.

Scalability

The last thing you need to consider when selecting a piece of software is whether you’ll need to replace it within the next few years. This new system will help your business grow – so if it’s not designed to grow with you, you’ll be back to square one.

Cost/Pricing Structure

Now that you have the requirements mapped, arguably the most important factor is the cost and pricing structure.

• Does the accounting system charge you by user?
• Do you need to buy bulk licences?
• What’s your budget?

When considering the cost – it requires you to revisit all the previous areas and answer the key question: “Is it worth it for the business?”. Only you can answer that question.

The add-ons

The groundwork has been laid, and the accounting system chosen. Now, all you need to do is review your bucket list. What functionality does the accounting system offer? If you require more functionality, look into the possible integrations. There are so many options out there for each required function. If you’d like to research the options, our App Centre will be useful.

From here, its time to perform your due diligence on each system. Ask yourself, is this app:

• Scalable?
• Integrated?
• Automated?
• Cost-effective?
• Applicable?

This can be a lengthy process for businesses, and system overwhelm is a very real concern. But it’s imperative for businesses to review each system in detail, or run the risk of facing the same problem in a year.

Businesses are increasingly outsourcing this process, reaping the rewards of a well-designed system choice and not losing any precious time.