By Intuit
As a business owner, you have to stay on top of all your responsibilities. You have to oversee employees, implement a marketing strategy, communicate with customers, manage finances, and much more. Managing a business is a huge undertaking, and missing a single step could cost you money and time that you probably don’t have to lose, which is why it’s important to take a look at your accounting enterprise resource planning (ERP) software. Having accounting software is essential for a business to assist with various business functions. But you could be buying into an ERP software that is more than what you actually need and more than what you want to afford.
What is accounting ERP software, you ask? ERP is essentially a database software package that assists with a business’s operations, such as manufacturing, human resources, and supply chain. Accounting ERP software simplifies many complicated business processes. However, ERP software can be outdated and complicated, and you may actually be paying too much for your software.
Large companies often end up paying more than they can afford for features in their ERP software that they don’t actually need. Money is valuable — you don’t need to be spending it on features that you’re not using to improve your business. In many cases, a sizeable, growing company will buy an ERP software with the hopes that it will streamline their business processes and enhance their overall performance. But more often than not, that doesn’t end up happening. Instead of providing cost reductions and performance improvements, the software just ends up making things more complicated.
In reality, a business is constantly evolving, but ERP software can’t always keep up with a business’s ever-changing nature. It’s important to take some time to look at your software, as it could be costing you money and hurting your business. To help you determine whether you’re paying too much for your accounting ERP software, review these five red flags below: Click To Tweet
1. You don’t use all of your ERP’s functions and features
Accounting ERP software offers a myriad of functions and features: expense tracking, inventory control, invoicing, business analytics, revenue streams, managing and paying bills, and more. While these features are all useful, they may not all be applicable to your business. Some functions and features of ERPs are necessary, but others aren’t, and this can ultimately end up costing your company more money.
While from the outside it may be tempting to opt for software that has all these features, in reality, you might not need them all. Instead, go for a more affordable accounting ERP software on the market that’s completely customizable, allowing you to choose which apps to pay for depending on your company’s needs. Customizable ERP software can be tailored to your own needs, so you can grow your business on your own time and budget. Most ERP software can easily integrate into your business, so you can be on your way to using features that you actually need.
2. System updates are expensive and time-consuming
Larger companies are continuously going through updates and changes to their business processes. Maybe there was a change in the operational process. Or perhaps there was a change in the management process. Regardless of what happens, you want software that can keep up with a larger business’s evolving nature.
Expensive ERP software that larger businesses use often requires system updates that are expensive and time-consuming. These system updates typically happen every 24 months and seldom include an update that is actually useful. So not only do these software updates happen on their own, there’s no guarantee that a feature you need will even be included in the update. And if you do decide to go through with the update, it requires a lot of planning and money to do so, as it can take months to complete. You may also need to hire a professional to teach you how to use the new updates, which will cost even more money.
However, if you decide not to go through with the update, you’re stuck with an outdated system that doesn’t accommodate your needs. No business owner has the time to deal with these issues, which is why a cloud-based ERP software that doesn’t require significant storage space is important. Cloud-based ERP software can be used on the web or on a Mac or Windows app to run faster. System updates are often much quicker, and you can access the software from various devices, which will benefit both you and your employees, especially in the case of remote working.
3. Costly maintenance fees
Bulky ERP solutions often have costly maintenance fees that can dig into your budget. So not only are you paying for a system you don’t need, you’re paying for expensive maintenance fees that you don’t use. Since ERP software updates on its own, these maintenance fees are out of your hands and can end up costing you more money than you realize. In addition, technical difficulties may require an expert to fix, which is going to end up costing you more money. Instead, opt for an ERP software that’s subscription-based. Most subscription-based ERP software providers don’t charge monthly or setup fees like many other ERP software companies do, so you’re in complete control of what you’re paying for. This way, you can work within your budget without those costly maintenance fees.
4. Lack of support
There is a good chance that somewhere along the road, someone will need assistance with your ERP software. And when that situation arises, there’s a good chance you’re not going to get help in the time frame that you need it. Sometimes when you work with a large ERP software company, the provider might not be able to offer adequate support for your business should you run into any problems. It can be difficult to get same-day support when it comes to ERP software, and a delayed response is only going to hurt your business more.
As you search for ERP software, do your research by reading reviews and testimonials to see which providers are designed with their customers in mind. This way, you can have peace of mind knowing that they can support large businesses to prevent critical outages, delivery delays, and more. You don’t want a small issue to hinder your entire workday, and a customer-focused ERP software provider can ensure that won’t happen.
5. Expensive technology
In today’s digital world, you can access virtually anything from your phone. Long gone are the days of needing a bulky computer to access the internet — you can now get to the internet from a watch. Technological advancements have changed the workplace as we know it, and the less equipment we need to use for work, the better.
However, some bulky ERP software options require expensive computers and other equipment to run their programs smoothly. This expensive technology can come with security risks, include maintenance costs, and be difficult to manage. You don’t want to depend on a bunch of equipment to access your ERP software. A cloud-based ERP software can be run on your smartphone, tablet, laptop, or computer, meaning it requires less expensive equipment but still gets the job done, which ultimately saves you time and money.
Wrapping up
Being a business owner is an around-the-clock job. You have many tasks and responsibilities you have to be aware of to secure the success and safety of your business. But you probably didn’t know that your accounting ERP software — a software intended to streamline business processes — could actually hurt your business and cost you money. If you have come across any of these five signs with your ERP software, it’s time to make a change. Opting for a cloud-based and subscription-based ERP software is designed to simplify business processes, save you money, and make managing a business a little bit easier. Switching your ERP software can be challenging, but the end result will be well worth it when your business is running more efficiently than ever before.
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