how to manage finances of your small business

7 Reasons to Upgrade Your Accounting Software

Businesses in the Philippines often find plenty of excuses to delay critical accounting system upgrades. While finding a reliable accounting system in the Philippines isn’t an issue, there is often resistance to change within organizations that need to make the switch to a newer system.

Here are some reasons you might want to update your accounting system immediately.

1. BIR compliance

New accounting systems are compliant with Philippine BIR requirements right out of the box. For this reason alone, it’s worth upgrading your accounting software to reduce the need for workarounds. You’ll be happy you did when the BIR comes around to audit your business.

2. Better data redundancy

New systems almost always feature cloud hosting and storage. Cloud servers are constantly being maintained and feature multiple levels of redundancy, which makes it next to impossible to lose your data due to a natural disaster or hacking incident. Contrast this with older systems that are tied to a local server or even a single computer, where all it takes is one brownout or careless employee to destroy your data.

3. Less unproductive downtime

If you know which ones to go for, new systems usually are far more reliable than older ones, especially when it comes to maintenance. Newer systems take advantage of improvements in modern hardware, allowing them to stay online for much longer than their older counterparts.

When you opt for a system that offers cloud access, your maintenance schedules will tend to be shorter as well. This is because the remote servers are maintained by specialized IT personnel, who are specifically focused on maintaining the system. Onsite servers, by contrast, have to be maintained by your own IT team, who may not be specialize in it.

4. Better integration with other operations

It may be inaccurate to call “accounting systems” as such these days, given their utility in helping virtually all parts of a business operation run more efficiently. A more accurate term to describe many new software suites would be “enterprise resource planning” or ERP software.

upgrade accounting software

New systems can automatically order stocks of supplies or other items when it detects the inventory running low. They can also be set up to automatically perform different actions for logistics, customer service, manufacturing, and other operational areas depending on the settings. If you want to make your business more efficient, a modern ERP system is now a requirement.

5. Reduced manpower requirements

Newer accounting and ERP software typically feature very high levels of automation. Generally speaking, this means you’ll need fewer people to produce to the same amount of output as with older systems.

This is more obvious with full ERP systems, as different operations tasks, including purchases of stocks and supplies, can be set up to be done automatically depending on the settings and data. This not only usually removes the need for middle management employees, but it also shortens the time it takes to perform routine tasks.

6. Reduced overall costs

The reduced risk of data loss, accounting errors, as well as the shorter downtimes, and reduced manpower requirements can also significantly lower the cost of doing business. In many cases, organizations have recouped their initial investment in accounting system upgrades in a matter of months because of the cost and risk mitigation offered by newer systems.

7. Better analytics and reporting

Where older systems often made it difficult to generate reports, newer accounting and ERP systems now make it incredibly simple to generate clear and understandable reports in seconds. Having good reports that are easy to understand and act on can mean all the difference when it comes to reacting to new developments in the market.

There are plenty of reasons to upgrade to newer, better, accounting systems. Not only does staying with an older system often present the business with a false sense of economy, but it can also put their data and credibility at risk.

What are your experiences with system upgrades? Tell us!

Salman Zafar

Originally posted 2020-03-04 10:40:29. Republished by Blog Post Promoter

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