5 Signs That Your Business Has Outgrown its Accounting Software

As a business enters its expansion period, a competent business manager who knows his/her job realizes that the once reliable accounting system has become a huge burden to the business. Many popularly used accounting packages are created for small businesses, but as sales increase over $2 million, managers may notice it’s not keeping up with the needs of the company's financial management. 

As a result of this, Business Managers may consider Outsourcing an accounting provider to supply the financial support needed to successfully run the firm. 

Here are five signs that you need to find an all-in-one financial management solution such as outsourced accounting services, to streamline your accounting practices as your current accounting software becomes outdated.

1. EXPANDING PAYROLL
Expanding payroll may be necessary as a result of hiring more staffs when there is business growth. Your payroll may be supported by your software for a certain number of employees per payroll period, but as soon as your firm exceeds 50 employees, many accounting packages won’t support the additional numbers of employees. Regardless of whether the bookkeeper or accountant is ready to update the software or not, the sooner it’s done, the better, as manually processing payroll checks is clunky at best.

2. NEED FOR ELABORATE REPORTS
Accounting software comes with templates for the detailed financial reports that a CEO/Manager is required to present to the board of directors, but as a corporation expands and considers acquiring more businesses or calling on the general public to subscribe to its shares, more detailed corporate financial reports may be required to provide compliance with state regulations. These types of reports may not be available with standard accounting software packages, and it may be difficult to adapt templates in an existing system.

3. INABILITY TO CUSTOMIZE
Some financial accounting reports may allow for a field change here and there, or minor table and column adjustments, but often provide limited customization for the detailed types of reports required by a corporation or state tax department. Many third-party software add-ons don’t work with all accounting packages. Staff may become bogged down with the need to manually create these reports, rather than providing the expertise they've been hired for. Having to purchase multiple software packages isn't cost-effective in the long run.

4. MORE THAN 15,000 TRANSACTIONS
Accounting package for beginners may support transactions up to 15,000, but what happens after that amount is exceeded? As an accountant or Business owner/manager, it’s time to explore new software or to consider outsourcing an accounting services provider to handle the heavier loads because a successful business will have rapidly increasing transactions in the future.

5. SLUGGISH SYSTEM
The increasing number of transactions in the accounting system as a result of business growth and expansion can also cause it to become sluggish, slow and bogged down. Your bookkeeper/accountant could become frustrated while waiting for lengthier load times. This can have a negative effect on productivity within the office and is certainly worth the time to look at hiring accounting services rather than purchasing more expensive accounting packages.