Modernizing your accounting and why it’s beneficial to your business

The evolution of technology has played a huge role in the advancement of everyday life. Modernized technology has enabled scientists to begin growing organs in labs, 3D printers can print prosthetic limbs, and Amazon can now deliver packages right to your… car?

Over the last few decades, accounting has evolved from pencil and paper to cloud computing. In the world of modern technology, if you’re not moving forward, then you’re falling behind.

Accounting is no different.

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The problem with outdated accounting

Simply put, outdated accounting is inefficient. Once a new product goes to market, developers stop supporting older versions of the product which can leave you with applications that are slow, buggy, can crash, or even become obsolete. Like how one infected organ can affect the rest of your body, an outdated tool can affect all systems in place, which is why your company should begin to think about modernizing your accounting.

Why modernizing your accounting benefits your business

Because technology can become antiquated so fast, staying on top of industry trends benefits your business in both the short-term and the long-term. Here are ways it can benefit your company:

Improved efficiency

The right accounting technologies can improve the efficiency of your business by saving your team valuable time and helping you make better decisions. Modernizing your accounting technologies will improve overall efficiency by keeping your team organized, tracking metrics, and automating simple tasks that take up valuable time.

Increased productivity

Because your team will save time with the right technologies, productivity throughout the company is boosted. Modernizing your accounting technology cuts down the time your team has to spend on data entry and other menial tasks and allows them to focus on impactful work that helps the growth of the company.

Increased savings

While the upfront cost of modernizing your accounting may cause sticker shock, it will end up saving you big bucks in the future. Just like with a 401k, you may not see the ROI immediately, but the sooner you begin to invest, the brighter your company’s future will be.

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What are the steps a small business can take to move toward modernizing their accounting?

Consider all of your options

Software isn’t like Cinderella’s slipper; there isn’t just one solution out there that will fit your business.

Depending on the size of the business, specific needs, industry, etc. these factors can determine which solutions are best for your company and your team. For instance, a service-based company would benefit from implementing a project management tool such as KeyedIn. KeyedIn not only helps to ensure accuracy, but it also syncs up with other popular software like QuickBooks.

Once you have an idea of what technologies are the best fit, the next step is making sure the software you choose is compatible with the other tools you are using.

Why is compatibility important?

Say you go camping with your family in the desert and you forget your phone charger. You have an iPhone and everyone else has a Samsung. Since chargers are not compatible, your trip has become an off-the-grid adventure. Investing in software that doesn’t communicate is a bigger, more annoying, and potentially expensive version of this situation.

Applications that seamlessly talk to each other will make your life easier, your team happier, and save you a lot of money in the long run.

Find the best solution for your business

There are infinite solutions out there; it may take some time to sift through to find the ones that best fit your accounting needs. Start by finding out which tools your team depend on or utilize most.

Don’t be fooled by a pretty (inter)face. A lot of software companies spend more money to make an attractive product, but once you get past the sparkles and glitter, it may be missing key components your company needs. Look for software that is customizable with easy to change features.

Most companies offer free trials. Scheduling a demo and doing a test run will also help you determine the best solution for your company.

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Don’t wait, but don’t rush

Investing in an entire technology overhaul for your accounting department is expensive and probably unnecessary.

It’s a difficult decision to pull the trigger when it comes time to upgrading or investing in better technologies. Even if it means it makes the company more efficient, improves processes, and helps create scalability.

No matter what, don’t rush into a decision. Unless everything in your accounting department is falling apart, finding the tools that will help your company may take time. For as costly as modernizing your accounting can be, it can be even more costly if you choose the wrong software.

At the end of the day, it’s still important to have people involved in these processes. Because there’s still room for error even in a system, accounting cannot be fully automated. Technology should help you keep your books intact but still requires someone to oversee it all.

There are many accounting technology solutions that can save your team time, increase efficiency and accuracy, and create long-term scalability. For assistance on how to modernize your company’s accounting, contact us today.