Businesses need dependable software to keep their accounts in order. These programs allow companies to enter their expenses, revenue, handle invoices, payrolls, and perform other such essential tasks. Most business owners don't realize that choosing the wrong software can cause problems down the line. At CapexCPA, we encourage clients to take another look at their current accounting software to see whether it is helping their business. Here are some signs that indicate your accounting software is holding you back.

1. Excessive Manual Entry

Your accounts grow as your business grows. You have more numbers to churn, more information to enter, and more expenses to manage. Entering data manually isn't difficult if your business only has a handful of clients. However, if you have dozens of clients, accounting can become very tedious. If you're spending too much time manually entering data or copy-pasting information, it is time to consider a better accounting system.

2. Trouble With Compliance

Different industries have different compliance requirements. It is vital to ensure your accounts are maintained according to these requirements. Basic account systems make it more challenging to comply with established regulations, which can lead to errors or non-compliance issues. Advanced accounting systems and professional accountants ensure your system and data comply with industry regulations.

3. Problems With Security

Many accounting systems aren’t as secure as they should be, which can be risky for businesses. You won’t want your company’s and customers’ data to fall into the wrong hands. Most on-premise IT systems are vulnerable to attacks from hackers, and companies need to invest hundreds, if not thousands of dollars into security systems to protect their data. Modern cloud-based accounting systems from reliable SaaS providers are much more secure. They're also easier to back up and keep safe in the event of a disaster to prevent data loss.

4. Lack of Insight

Your business accounts are an essential source of information. They don’t just record your finances, but also provide an insight into your company’s financial health, future earnings and expenses, and projections. You can analyze the data to identify trends, determine which products and services are bringing in revenue, etc. Sophisticated accounting systems provide detailed reports that can help you understand this information and utilize it effectively.

5. Doesn’t Track Changes

If your accounting system doesn’t have controlled access, your accounts will be a mess, which can get you into legal trouble. Advanced accounting software systems allow you to control access and ensure all the changes are recorded. This will allow you to control the information and ensure everything in order. You can reverse changes and make sure no one arbitrarily meddles with the accounts.

If your account system doesn’t perform up to expectations, it will harm your business. Consider upgrading your platform to something that is better suited for your business.

If you have trouble managing your accounts or need professional assistance, don’t hesitate to get in touch with us at CapexCPA contact us or call 416 903 4040. 

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team