5 Signs It's Time to Replace Your Outdated Accounting Practice Management System
January 6, 2022
Firms occasionally must review and update their outdated accounting practice management software to meet the needs of their growing businesses. If your software is obsolete, it may have significant limitations that make it difficult to use with your firm’s ever-changing needs. Unfortunately, using outdated accounting practice management software puts you at risk of being unable to properly manage your firms workflows.
To avoid all that, you must know when’s the best time to update your system and upgrade to a new one. Here are some of the common signs your firm already needs to replace your outdated accounting practice management software.
1. You Have Limited Access to Your Data
You have limited access to your data if you have to log on to an external system to view your data. If you’re unable to view your data easily, you will have to rely on others to get it for you. This will cause delays, increase their workload, and cost you more money.
2. You Always Have to Use a Workaround
You need to find a workaround because your outdated software might not provide the features you need. For example, you might be stuck using workarounds to report and track your inventory, severely limiting your ability to make decisions and understand your firm’s finances.
Likewise, you might be stuck using a workaround for time tracking. If you have multiple employees or remote workers, you can use a workaround to track their hours and create payroll reports. Having to use workarounds can quickly become a time-consuming and costly exercise.
3. You Can’t Import Your Data Because It’s Not Supported
Your data represents one of your most valuable business assets, but an outdated accounting practice management system might not be able to import data from your previous system. This can create problems on many levels.
For instance, you may be unable to transfer your data to your new accounting practice management software if it can’t import data from your previous software. You might also have problems locating data that was once readily available. Without the ability to import your data, you will have to manually enter it into your new software, which will take time and money.
4. You Have to Switch Between Multiple Tools
If you have to constantly switch between tools to perform your tasks, you have an inefficient system. Switching between multiple tools to complete accounting and financial tasks can lead to delays and incorrect data.
For example, you might have to switch between your accounting practice management software and payroll software to complete your payroll tasks. Because of this lack of integration between your financial software, you will waste time switching between tools to complete these tasks.
5. You're Overusing Excel
Do you find yourself constantly switching between your accounting practice management system and Excel? If that’s the case, you might have an outdated system. Unfortunately, you might have to switch between multiple tools to complete tasks that could be completed in one tool, including Excel.
According to a recent survey, 60 percent of accounting professionals spend more than three hours per week manually typing data into Excel. Additionally, nearly half of these professionals spend more than five hours per week manually entering data. This means that an outdated accounting practice management system can create serious time management issues that are difficult to resolve.
Revisiting your accounting practice management software is an important decision that can significantly impact your firm’s performance. You should choose the right solution by considering your business needs, accounting requirements, and how you manage your firm. While it is never easy to switch to new software, it is necessary and worthwhile. Do it at the right time and move on with a fresh start.
Firm360 allows you to get more work done for less. If you want all the tools you need to make your accounting firm’s processes more streamlined and efficient, our platform is the perfect application for you. From project management, time and billing, as well as document management, Firm360 has all the features you need. Book a demo today and experience an accounting practice management software like no other!