5 signs you need an accounting system upgrade

How do you know it’s time to upgrade your car? You might have had it for a while and after driving lots of kilometres, it costs more to run, doesn’t drive as well as it used to, and needs more frequent services.

That’s when you know you need to upgrade your car — but how about upgrading your accounting system? At what point is your accounting system holding back the growth of your business?

Here are five tell-tale signs that you need to upgrade your accounting system:

1. You are spending too much time on financial record keeping, or worse still you aren’t keeping the financial records up to date

As the business grows, so does the amount of financial transactions. Often business owners start recording their financial transactions in a book or spreadsheet. This makes a quick analysis of the financial results very difficult. If you find that you are spending too much time keeping the books, the first port of call should be accounting software that makes the job so much easier.

2. You can’t get the information you need

You know you are lacking good information when your sales are going well, but cashflow is still an issue. Or you set targets at the beginning of the year, but you’re not sure that you are going to achieve them. Or you would really like to know sales per customer so you can ensure your marketing strategies are in line with customer needs. If your current system is not providing the information needed to make informed decisions on a range of business performance measures, then it is time to step up to the plate and upgrade.

3. You dread BAS statement time

If your business is registered for GST, then you will be required to complete a BAS (statement) regularly. Many business owners leave this to the accountant, but with a good accounting system that is well set up, you only need to push a couple of buttons (or mouse clicks) and your BAS statement will be ready to go — imagine the accounting fees you will save!

4. You spend a day doing the payroll

Payroll used to be easy when there were only three employees. Now you have ten; each one has a different Superannuation provider; and after you have calculated the payroll, PAYE tax, super and other allowances or deductions, you still need to actually pay your employees. Save time with an accounting system that keeps track of all the relevant information for each employee and can generate the payments to them through a direct link to your bank account.

5. Stock shortages are becoming the norm

You know you need an upgrade when stock records are not being kept up to date and you find yourself ordering new stock when you sell the last item. A good accounting system will provide you with the ability to manage stock more effectively — your accounting system will match sales to stock items and then you will easily know when it is time to order.

We all love an upgrade, especially when it makes life easier. Upgrade your accounting system and start enjoying the benefits.

READ: Online accounting: busting the myths

If you’re seeing any of these signs, MYOB can help. Whether you need easy, online accounting like MYOB Essentials, or want the power, control and flexibility of AccountRight, there’s an MYOB solution to make business life easier.