10 Tips for Making Your New Accounting System Work for Your Organization
Finding modern accounting systems in the Philippines has never been easier, thanks to a large number of software and implementation solutions on the market today. Unfortunately, getting a new system to work for your organization, even one that should be suited for it, isn’t as simple as getting out your checkbook.
Transitioning to a new accounting system can be an involved process requiring an understanding of different human, organizational, and technological challenges. There is a lot more to it than simply finding software that can do the job.
Here are 10 tips for making your transition to a new accounting system that much smoother:
1.) Always have objectives in mind
Having a set of objectives can help quickly narrow down available options and prevent overspending or acquiring an unsuitable system. In other words, objectives make it easy to find a system that solves problems rather than adds to them.
2.) Always choose a system with cloud storage and access
Cloud access not only gives the organization more flexibility, it usually offers better security than is possible with most systems reliant on local on-site servers. Plus, it allows you to save on your IT expenses and allows your IT team to work on more critical tasks.
3.) Don’t let organizational politics dictate modifications and features
As the saying goes, too many cooks spoil the broth. There is a very real risk that your new accounting system can become bloated, buggy, underutilized, and delivered late if you let too many people in your organization have a say in what features should be included. Try to stick with the objectives that have been decided as much as possible to prevent cost overruns and late deliveries.
4.) Try before you buy
One big mistake committed by many local companies is to purchase the first system that a vendor offers. This can easily result in a poor fit which may require expensive customization and fixes. Always take the time to use a free or trial version of the software you think might work for your organization before committing to it.
5.) Use a modular system
Modular systems typically cost less to use and implement compared to full-featured systems. They also allow for better system utilization, as there are no extraneous features to distract users, provided the appropriate modules are chosen. Modular systems are also typically easier to upgrade as the organization’s needs change.
6.) Research the true potential of a full-fledged ERP system
Many business owners and managers remain unaware of the true potential of today’s accounting systems. In fact, outside the Philippines, these systems are more often called enterprise resource planning systems or “ERP systems”, a term that better describes the capabilities of current solutions. Some research may allow a better understanding of which parts of the business could benefit from a system upgrade.
7.) Have a plan in place for your data migration
Data migration is often the trickiest part of transitioning to a new system. While some database migrations can be automated, likely, you will still need to use a lot of manual labor to get everything onto the new platform. Try to anticipate what you need before you implement the new system so that you can better meet the staffing and technology requirements for the data migration.
8.) Consider updating your organizational approach to data
A common issue with accounting system upgrades in the Philippines is that the organization may have new technology but its management lacks the imagination or the context to make use of it. It may be worth examining if your organization currently has the culture and the processes in place to make good use of your new system.
9.) Invest in training your employees
As with many things in life, it’s not what you’ve got, it’s how you use it. A major reason for the failure or underutilization of ERP and accounting software in the Philippines is a failure to account for employee familiarization and training protocols. Your new system will not be much good if your employees can’t use its true potential. This makes it critical to include training for both current and future employees in your upgrade plans.
10.) Avoid customization unless you have to
While many organizations insist on customizing their new ERP or accounting software, the truth is, most of them will have their needs adequately met by unmodified off-the-shelf systems. Given that customization is typically expensive and a major cause of budget overruns when upgrading, it can be prudent to avoid any code-level customization unless necessary.
Upgrading to a new accounting or ERP system can be difficult and tedious but it’s a necessary step for most organizations that want to efficiently scale different operations. With these tips, hopefully, your organization’s transition will be a smooth one. Be sure to get in touch with the team at ANSI to learn more about upgrading an accounting system in the Philippines.
Category:
Technology