Most Philippine SME’s readily acknowledge the many advantages of having a computerized accounting system. However, it’s not enough to simply have such a system in place. Given improvements in technology since the widespread adoption of computerized systems decades ago and the demands of today’s fast-paced markets, it’s necessary to have an updated system in place in order to remain competitive.
Here are some signs your computerized accounting system is due for an upgrade.
1.) It only does accounting
Today, it’s not enough for computerized accounting systems to strictly focus on accounting. “Accounting system” is kind of a misnomer, as the expanded functionality of current systems allows them to do more than just accounting. Current systems are more accurately described as “enterprise resource planning (ERP) systems” as they not only include functionality for accounting processes and operations but other areas of the business process as well.
Updated systems typically include functions for sales, customer service, inventory, payroll, and demand forecasting among many others. These are also usually interconnected so that a relevant change in one area is automatically inputted in others, saving countless man-hours of labor and enabling your enterprise to focus on other important parts of the business.
2.) It lacks cloud storage and access
While many business owners in the Philippines may feel that an on-site enterprise resource planning system might be safer, the opposite may, in fact, be true. On-site systems that are maintained by in-house IT personnel consistently experience more lag time, due to the fact that most in-house IT personnel do not specialize in the upkeep of ERP systems. In the Philippine SME setting, they tend to do a wide variety of other projects and can’t always allocate time for database maintenance, slowing down their ability to resolve any issues that might occur.
Cloud functionality also offers businesses the capability to do real-time updates to their books, which in turn allows for timelier, more accurate reporting. With the right administrative settings, you can also ensure that key employees with a computer or smartphone are able to access your system wherever they may be – which is truly important in today’s global economy.
3.) No multicurrency support
If you find that you have to constantly make manual currency conversions, it’s a definite sign that you should upgrade to a new system. With today’s interconnected global market, the lack of support for multiple currencies will just hamper your growth.
4.) You can’t get the data you need
Older systems may be good enough for most bookkeeping functions. But they are often inadequate for creating certain types of reports in a timely manner. While there are usually some workarounds that will allow you to get the reports you need, relying on ad hoc workarounds isn’t exactly something you want in a system that different people in your organization will use.
5.) You’re experiencing frequent overstock or understock
Frequent problems with stocks for manufacturing and sales is a tell-tale sign that your system may need to be replaced. Newer systems often integrate forecasting functions and automation that allows you to order just the right number of items at just the right times, reducing the risk of catastrophic overstock or understock issues.
6.) You hesitate to get data because it takes too long
If you find yourself reluctant to get data from your system because the process is too complicated or takes too long, it’s definitely time to consider a change. A modern enterprise resource planning system will allow you to have near-instantaneous reporting, allowing you to be more agile in your decision-making process.
7.) You’re spending too much time bookkeeping
A good ERP system will allow you to spend less time bookkeeping and more time growing your business. Obsolete systems tend to be much slower to work with as your business scales up.
The major reason for this is manual data entry. The need for manual data entry can greatly slow down the efficiency of any system. What’s more, manual data entry is prone to error, and compounded errors can sometimes lead to inaccurate or potentially catastrophic results.
Newer systems such as SAP Business One offer automation features and customization that can greatly speed up the time it takes to do routine tasks, allowing your accounting and payroll teams to do so much more with far less manpower.
8.) Your system forces you to manually re-input the same data
If your system forces you to manually re-input the same data in multiple places, then you definitely an upgrade. Manual data entry is prone to error, and having to re-input the same data in a different place is just asking for trouble. Modern ERP systems will typically just need you to enter data once, with automation doing away with the need to manually re-input the data in multiple areas.
9.) Your system is unable to handle online transactions
A growing proportion of commerce is done online. ERP and accounting systems that are unable to automate data entry from online purchases can significantly hamper your potential for continued growth online. If your ERP system is unable to cope with the demands of your online business, then it’s definitely time for an upgrade.