3 Signs It’s Time to Reevaluate Your Accounting System
Posted by Jody Leoni on May 28, 2010
If you’re like me (a business owner) and your business is growing, at some point, you’re going to start noticing a few red flags with your current accounting system. You might notice that orders are slipping through the cracks, or information doesn’t get to the right person in a timely manner to make good operational decisions.
Don’t lose another hour of sleep. If you are seeing any one of these symptoms, you know its time to talk to a consultant. Here are some surefire signs your business is ready for the change.
Sign 1: Customer orders are missing
Your current accounting system has grown with you to this point. It is familiar, and possibly easy-to-use, but it may be missing an order here or there, or maybe customer satisfaction is down, as you can’t deliver on what they need. Maybe you are considering adding a second location or expansion office. You may be at a point where you need something that goes beyond accounting, and includes features such as customer service management and production.
If you have a large sales team (over 20 people) that needs fast, efficient tools to manage order processing, inventory, customer relationships and more, it’s time for an upgrade. When clients call to check their status and you have to ask several different people to check their spreadsheets, consider switching to a new financial management system.
Sign 2: You’re ready to open a new branch or office
As your business matures, your infrastructure should too. You have to accommodate new data, keep it organized, and equip your team with all the information they need. Your CFO should be able to know at any given time what financials are, and what projections look like. Your operations manager should be able to handle exceptions and keep the right amount of both raw materials and finished goods on hand. You like to have an real-time report of how your business is running, and how you can prepare for the future. Having more offices or people to coordinate requires a system that not only hold lots of data, but can grow with you as you grow larger or adjust to changing market conditions.
Sign 3: Customer satisfaction is down
Many business are having to get by with less in this recession. However, customer satisfaction is directly related to delivering on promises. If you can’t determine what you have in your inventory to be able to effectively deliver your product, you need a system that supports you. That’s where having all your customer, accounting, and inventory data in one ERP system allows departments to have the information they need to do their job well. And it gives better visibility to the supply chain, as well as where the bottlenecks are. If you ask your customers why they aren’t as satisfied, chances are orders are increasingly delayed or somebody fell through the cracks.
If you are experiencing any one of these symptoms, contact one of our consultants. They’ll give you a free assessment of your current situation and make recommendations that can ease your pain.