I spoke with a CFO of a small, but growing business recently, and he asked me a simple question, “Why should I implement a new ERP system?” The answer is simple, robust, and one I explain quite frequently. That being said, I want to share, over the next several weeks, some of the main reasons I believe companies may need to implement a new ERP system.
Reason #1: Software Limitations of Your Current System
Baseline entry systems are just that…entry systems. Just because the system got you started…initially meeting your needs, doesn’t mean it will continue to meet your needs as you grow and become a more complex organization. That requires a system built for enterprise needs (not necessarily expensive, but built for growth).
In my experience, many emerging companies begin to feel “growing pains” with their current software…limitations, indicating it is time to implement a new ERP system. These companies experience major software problems including the lack of real-time reporting, multi-currency capabilities, frequent software crashes due to the amount of data stored in their systems, and no integration between disparate systems.
There’s no doubt that deficiencies in generating accurate, timely financial intelligence due to software limitations negatively impacts a President or CFO’s ability to drive performance in an organization, but it is difficult sometimes to make the leap to a new ERP system. Cost, time lost during research and implementation, as well as comfort level with the current system can all lead to a company choosing to stay with their current system “a little while longer.” But often the hidden costs are even greater…the inefficiencies and lost management information to build business. Since financial transactions are the lifeblood of business, the need for an ERP system that grows with your business should be a tool to drive success, not just a historical reports tool.
For many companies, Intacct is a great next step from their current system as it handles the increasing complexities of growing businesses, utilizing cloud multi-tenant architecture for great functionality with low cost. With Intacct, you can improve financial controls across multiple business entities, deliver robust cloud financial management to finance without IT infrastructure, streamline financial processes, and reduce close processes from a few weeks to a few days. It helps eliminate growing pains, enhance productivity and visibility, reduce capital expenditures, and speeds up the flow and accuracy of reporting and intelligence for better informed business decisions. Isn’t that what we want as Presidents and CFOs of growing businesses?