As your small business grows, you may realize that your current accounting system is not as reliable as it once was. It's become slow, clunky, and doesn't generate the reports your business needs to predict additional growth. Truth is most accounting software platforms are designed for companies with annual revenue under $2 Million. Growth means you may need to look at hiring an outsourced accountant or outsourced accounting firm to help provide the financial support you need to run a successful organization.
What are the signs you’ve outgrown your small business accounting software?
More Staff, Greater Payroll Needs.
Your current accounting software may support your expanding staff to a certain number of employees, but once you reach 50 almost all accounting platforms won't support the additonal numbers. No matter whether you are ready to update your software or not, the sooner you can do it, the easier processing payroll will be.
Reports, Reports and More Reports
Most accounting programs include templates for financial reporting, but as a company grows and considers going public, you will need more elaborate and percise reports, and these reports may note be available with the software you are currently using. And, it may be difficult for to update these template to suit your needs. An outsourced accountant is able to distinguish your needs and create reporting that is needed to help with IPOs, or acquiring additional funding.
Some accounting platforms might allow for your to change one or two fields, and make minor table adjustments, but you are often limited for the type of reports that you need to be creating. You could try third-party add-ons, but there is no guarentee it will work with the software program you are using. You internal team may become overwhelmed and bogged down by the manual creation of these reports - plus they are overlooking their original tasks in order to take on the additional work. Working with an outsourced accountant allows your team to do what they do best, and you to receive the type of reports that are needed to expand your business.
Too Many Transactions
Your basic starter accounting package may only support transactions up to 15,000 - but what do you do if that amount is exceeded? This is your sign to start exploring new software or find an outsourced accountant. An outsourced accountant is able to adapt on the fly and consistently work to handle the the increase in transactions.
With the increase in transactions, you may begin to feel your accounting system is becoming sluggish and bogged down. Your team may become frustrated waiting during the longer load times, which can have a negative effect on productivity. Lack in productivity is a prime indicator its time to outsource your accounting, rather than invest in purchasing an upgraded accounting system.
Growth is exciting, but can bring up many challenges. If your business experiences any of these warning signs its time to consider your options. Find a new platform that may handle part of your needs - or find an outsourced accounting partner who can scale with you.
We could be your perfect match - let's connect and discuss your needs to continue your progression forward.