Getting started with a new financial system
Getting started with a new financial system is a daunting task, no matter how you wish to spin it. Whilst the digital age has provided us with some solid tools to operate our businesses with, they also present us with the task of learning their capabilities and how to ensure they work well with our business. And that’s the key to getting the most out of a new financial system … it fitting with your needs.
I have worked with many businesses with whom have financial systems set up because they “thought it was the best system on the market” or they were just under the impression they had to have one “like this” … and not because “it suited our needs”.
Knowing what you need / want from a financial system in your business should be decided with the same vision as deciding on the mix of products or services you have. Why? Because both decisions will result in a successful business if you get them right.
You see a financial system that caters to your needs, rather than trying to make it work, will provide you with some powerful tools to ensuring financial success in your business. So when thinking about a financial system to suit your needs, I would consider the following;
1. The cost.
The first thing I would consider if is whether your business can afford the ongoing fees? Or whether there is an alternative solution to an off the shelf product that may be free, such as Excel. Almost all of the off the shelf financial systems offer payment options such as monthly, annually etc. But that won’t change the answer if you can’t afford another expense in your business. So think smart about what you are prepared to commit to financially, and how those costs will impact on your bottom line.
2. Accessibility & connectivity.
When thinking about a financial system, I would try to align your options with your ability to access the information should and when you need to. Systems of old were loaded onto localised computer systems and restrict their usage. But beware, some of the products today still have this option and they are usually cheaper … so be careful of that trap. You may want one that you can access from all devices, one that is connected to the cloud for security of information, and one that undertakes automatic system updates so as to not miss out on any relevant updates like tax and superannuation rates.
3. One that is flexible.
I would recommend looking at systems that provide you the most flexibility to ensure that the look and feel of the system can represent your brand, create reports that are relevant to your business, and have multiple users access, such as your accountants etc.
4. Is easy to navigate.
One that is easy to work your way around. Provide you with “how to use” details and provides the best support, either online or offline. And whilst we are on the subject of support, one that has a phone number you can call should you get stuck. Nothing worse that trying to find a solution to an individual problem when the system generated responses are so generic and assume you have an accounting degree.
5. That ticks your needs on functionality and features.
Think about your business in its future when thinking about getting an accounting system. There is nothing worse than trying to grow your business if your financial system can’t grow with you. If you sell products, and therefore may need a robust inventory management system in the future, ensure the system you choose either has one already, or has an add-on that can be attached to it in the future. If your business trades in foreign currency, ensure that it can handle this.
6. Make sure it’s simple enough that you’ll actually want to use it.
I see this all the time … businesses with great financial systems that aren’t being used. Financial systems sitting idle because the users just don’t understand how to use them properly. Not only are you wasting money, you’re missing an opportunity to generate some important information for your business. So make it right for you.
All in all, what is important to remember is that financial systems are varied in nature and important when it comes to running your business. So what ever it looks like, whether it be an off the shelf system, a purpose built system or even an excel system, make sure it’s catered to your needs, simple for you to use and want to use and supports the future growth of your business.