When to upgrade
If your business has significantly increased its turnover or customer load since you first installed your software, you may need to take a second look at it. Even the most capable application can find it a strain trying to handle more work than it was designed for. For example, if your package is designed for small businesses, with a small customer base, but your company has made the leap to a medium-sized enterprise, you might need to change over to a package that has the capacity to deal with the extra demands this entails.
Likewise, if your employee numbers have increased, you may need to upgrade or change your accounting package to one more suited to your staff size.
You may also want your software to do more for you, such as delivering more complex and in-depth reports. The ability to integrate accounting software with other packages - customer relationship management (CRM) software, for example - may also be desired. This facility can make invoicing and tracking customer interaction much easier, as separate applications can "talk" to each other and share information.
What do I need to know?
There are several things that business should consider before changing or upgrading accounting software.
- Do your research. Before you pick a new package or upgrade, you need to ask yourself a few questions. What do I need from a package now? Do I need extra capacity for staff and customers? Do I need completely new functions? If you can't find a package to suit your requirements, and if your budget allows, you may need to go for bespoke software tailored to your specific business needs.
- Look to the future. You need to ensure that your software will meet the needs of your business six or eight months down the line. There is little point in investing in a software package that will need to be changed again in the near future because your business is growing so fast. Ensure it is scalable.
- Be reasonable. Don't be tempted to try to do things cheaply just to save a few cent now. Scrimping can be a false economy, and one that can cost you dearly in the future.
What upgrades are available?
The type of upgrades available to you are dependent on what package you want to change over to, or what software you are already using.
The upgrades may sometimes be as simple as obtaining the latest version of a program that allows you to take advantage of improved interfaces and simplified processes, or an update that provides for the latest regulations in tax law. It could also mean adding in some new functions to your software. For example, you may have started off using stripped-down "express" or "lite" packages, because it suited your business model and budget at the time. However, with a bit of extra investment you can reap some further functionality.
Integration is a major benefit of more up-to-date and feature-rich accountancy software, and one that all businesses, regardless of size, can take advantage of. There are plenty of accounting packages that are integrated into enterprise resource planning (ERP) systems, which combine a company's processes and data into a unified system. ERP systems include customer relationship management modules, which can be useful when used in conjunction with accounting software, as all customer data - including contact made and invoices sent or paid - can be kept in one place.
Open source
There has been much talk about open source software as an alternative to costly licensed software. There are some open source packages for accounting available to download, but while they may be a good alternative to pricey packages for some companies, there are some issues that you need to take into account before diving in.
- Training and support. Some open source software may not come with the necessary training and support for businesses. However, this is not always the case, and big name companies such as IBM are now supporting open source software. Check it out before making a decision.
- Technical staff. You may need on-site expertise to deal with technical issues that could arise. If this is not available from the open source provider, you might need to bring in a third party, which will have cost implications.
- Cost. Open source does not necessarily equal free. Some open source packages can require a bit of investment to get up and running as required.
With so many choices open to firms who want to change or upgrade their accounting software, there is sure to be a package that suits every business. The key is deciding what works best for your company and putting a little time and effort into researching the various options.