You may suspect that your organisation has outgrown its accounting software, but the idea of implementing a new finance system can be daunting. However, the purpose of an enterprise resource planning (ERP) system is to help you work efficiently and productively, and if your ERP isn’t ticking those boxes, it might be time for a change.
Why should you consider implementing a new finance system?
Unfortunately, failure to implement a new ERP could result in stagnant growth and even lost profits. When you consider some of the most common problems with outdated finance systems, it’s easy to see how these issues could impact business growth:
1. Too much manual input
Having to manually input data is time-consuming and inefficient: there are better uses of your team’s time. An updated ERP solution can help automate processes.
2. Data not being provided in real-time
Outdated ERP systems don’t update automatically, which can prevent or delay you from taking immediate action. Implementing a new ERP could help you see and respond to data in real-time.
3. Not meeting your company’s needs
It’s very common for companies to have a ‘wishlist’ of things they wish their finance system could do, but unfortunately, their current ERP doesn’t meet these needs. If your current ERP system can’t adjust, or adapt to company changes over time, it can cause inefficiencies, waste time, and halt progress in your organisation.
How do you know when it’s time to implement a new finance system?
Many companies put off implementing a new finance system as they’re wary of the upheaval it may cause, as well as the resource and cost involved. However, continuing to use an ERP that isn’t working efficiently or effectively could be damaging your business, so it may be time to take the plunge. Here are some signs that it could be time to upgrade to a new ERP solution:
1. Increased manual input
As we touched on previously, manually inputting data can be a big red flag that there is a problem with your current finance system. If your employees are resorting to manual activities such as entering data by hand, it is likely time to implement a new finance system.
Up-to-date ERPs will give you better functionality around data entry. As well as reducing the capacity for human error, this will save time and resources and increase efficiency. Your team can be re-deployed doing tasks that are of more benefit to the business, and you may even save money on admin staff.
2. Difficulty creating reports
If your team is struggling to pull correct data into reports, or create reports accurately and efficiently, this could be a sign that it’s time to implement a new ERP.
Data is so important to all organisations, and having easily-accessible, up-to-date data is crucial when it comes to using data to its full potential to benefit your business. Implementing an up-to-date finance system can help your team view and analyse information effortlessly, making it much easier to create accurate reports that inform business decisions.
3. Lack of accessibility
We are in the age of hybrid and flexible working, which means that accessibility to systems is now more important than ever. If your employees can’t access your accounting software whilst they’re out of the office, it’s time to consider implementing a new finance system. A cloud-based accounting software would enable your team to complete tasks remotely.
4. Not enough storage
If your finance system tells you that you don’t have enough storage space, this can be a clear sign that it’s time to upgrade. Some organisations find that they have to sacrifice old records in order to accommodate new ones to combat a lack of storage space. Losing historical data is always risky as you never know when you may need it in future. By implementing an up-to-date finance system, you can find a tool with appropriate storage for your organisation’s requirements.
5. Insufficient functionality
When it comes to your ERP, if you find yourself always thinking “how nice it would be to have this”, or “how much time it would save if it did this”, then that’s probably the biggest sign of all that it’s time to implement a new finance system. Upgrading your ERP can change your ‘wishlist’ into a reality, and ensure that your new finance system really will tick all the boxes that will make life so much easier. Rather than finding ways to fill the gaps that your current system can’t manage, an upgrade can mean that everything is in one place, with all the functionality you need to operate efficiently.
How ERP Implementation consultants can help
Phase 3 offer professional Finance Implementation Services, and have implemented Finance systems in over 700 businesses. We understand that ERP implementation may sound like a daunting task, but that’s why we are here to help. As specialist ERP implementation consultants, we partner with a number of Finance Technology suppliers and act as the implementation team or service integrator for their products.
If you are considering updating your finance system and would like some advice or support, contact Phase 3 today.