Making the best financial decisions for your business is essential for stability and vertical growth. Therefore, having the right accounting software is vital for the decision-making process needed to effectively pilot your organization. The value of an accounting tool is in how it helps you and your team understand the financial data driving and influencing your organization. Consider how a 360-degree view of your business can help you avoid pitfalls and pinpoint opportunities to strengthen your organization. That’s pretty powerful, yet there are additional factors that make this an invaluable investment. Let’s delve into what makes accounting software a valuable tool for your business. First, we’ll look at the dangers of investing in accounting software that isn’t effective.
The Cost of Financial Software Failures
According to the Tricentis report, an annual analysis of software failures, in 2018 alone, $1.7T in revenue was lost to failed or incapable software. Businesses and organizations manage their finances and profitability through accounting applications. That lost revenue is a result of both accounting methodology and its relation to the software itself. Without effective accounting software, businesses are making decisions in the dark, resulting in unpredicted revenue loss over time. What’s crazy is that the loss is highly preventable through innovative accounting software.
The U.S.’s National Institute of Standards and Technology (NIST) estimated that the U.S. economy lost $60B each year to failed software, through both repairs and the cost of lost work time. Therefore, investing in reliable software immediately addresses this issue in the financial management sector. This benefits every level of the organization, helping maintain and monitor the overall financial health of each economic tier. From this vantage point, can you imagine how great the impact would be if even half of the businesses invested in software that’s compatible with their growth and collaboration?
When businesses are paired with effective accounting software, the risk of significant financial loss and endangerment is significantly lowered. Additionally, the time and manpower that would otherwise be used to rectify, enter, and arrange financial data are heavily reduced through an automated accounting system. Why use outdated, rigid systems that require additional work to restructure or reorganize your data? The value is just too great to not use a modern accounting tool.
Modern Accounting, Space and Time
It’s critical to invest in accounting, and specifically, the right software for your goals and needs. Accounting software should enable you to manage both expenses and revenue, as well as analytics. Remember, effective decision making requires real-time knowledge of your expenditures and revenue, as well as visibility of projects and projections. Having one software that encompasses basic features like reporting, billing, and project accounting saves time and provides a comprehensive view of all your financials. This helps you focus on the data itself and how accounting is an integrated facet of your entire business. Accounting is not a siloed facet of your organization. Remember, finances impact every aspect of an organization and its health, so why isolate that data? When you and your team can clearly track and manage your company’s entire financial landscape, stakeholders wind up making fewer decisions in the dark and instead can isolate better strategies to retain the greater return on investment.
Truly valuable accounting software is also flexible and able to meet your company’s needs for customization or configuration. Contemporary programs have the modernity and features to configure data however suits your organization’s needs or preferences. The right program for each business varies, though newer cloud-based software allows for greater accessibility as well as software that operates as native to its platform.
With Great Visibility, Comes Greater Collaboration
Time is money; the less that’s spent trying to merge siloed accounting data and fix spreadsheet errors, the better. When the data is also accessible on the same platform as the rest of your organization’s details, it’s easier for project teams and other branches of your organization to work together seamlessly. When project budgeting, expenses, and data are visible to key stakeholders, your organization works more seamlessly overall. An investment in the right accounting software is also an investment in your organization’s efficiency and workflow.