When most people think of Small Business Saturday, they think of it as a day to shop and make purchases at local retail shops in their communities to help them compete against larger big-box and online retailers. But, according to Guidant Financial, 11% of all small businesses are business services companies. That’s the largest category. Only 7% of small businesses are retailers.
At Velosio, we are constantly looking to help small businesses, but not just retailers. We help guide all kinds of businesses to solve their challenges by deploying best-fit business applications that keep them ahead of their competition in today’s digital-first business environment.
Signs You’re Outgrowing Your Accounting System
For many businesses, their basic accounting system has been a workhorse for their small business as they grew through the years. It tracked transactions, generated monthly reports and made it easy to stay on top of their cash position. It likely paid for itself several times over.
But as business growth picks up pace, the limits of a basic accounting system become apparent.
- Growth: Many businesses grow by adding locations and/or acquiring other businesses. Both scenarios drive increased complexity in the businesses and stress the limits of a basic accounting package. Additional complexities are added if a business expands internationally where different currencies and exchange rates must be accounted for.
As the business expands, the number of entries into the general ledger pile up. The system speed decreases accordingly. Add to that the number of users and remote workers accessing the system and response times slow even further.
- Inefficiencies: As a result of growth, many small businesses begin to experience inefficiencies in their businesses that can slow growth and eat into profits. The fact is, as companies grow and add products/service, locations or even other businesses, critical business data gets siloed throughout the business. It becomes harder for management to have a single view of their customers, their products and profitability.
In addition, costs increase as it takes more and more manual work to pull together reports and to consolidate financials. Additional custom programming may be required to tie disparate systems and databases together.
A cost that will not directly appear in the income statement is the cost of opportunity lost. Running a business on fragmented systems usually results in slower reaction times. It’s hard to make proactive moves when data in reports is weeks or even months old. That single source of truth needed to make decisions with confidence gets harder and harder to generate quickly.
- Security: When companies are starting out and there are only a handful of employees, paychecks may have been written by hand and everybody knew the monthly revenue numbers. But as companies grow, they add layers of management—not everyone who has a need to work in the accounting system has a need to have access to all the data in the company. Many basic accounting systems are limited in the number and definition of roles. This becomes an issue as more users are added.
New start up businesses may only have their accounting system running on a single desktop or laptop computer. Larger businesses may have their accounting system running on a service on premises where it can be accessed by multiple users. Both scenarios expose critical accounting data to loss unless it’s backed up properly. Even then, the restoration process can present issues that put data at risk.
Finally, with data breaches becoming more prevalent, many businesses are finding protecting customer, corporate and other proprietary data increasingly difficult, not to mention expensive.
Have you waited too long?
Knowing the signals that you’ve outgrown your accounting system is one thing; making the move to a modern system that connects all parts of your business from finance to accounting to sales and marketing is another. The remainder of this article provides a closer look at why more businesses are moving to cloud-based Enterprise Resource Planning (ERP) systems to break out from the constraints of their current systems.
7 Reasons It’s Time to Migrate Your Accounting System to the Cloud
Now is the ideal time to move to a connected business system like Microsoft Dynamics 365 Business Central on the Microsoft Azure cloud platform to establish a foundation for your digital future. By taking advantage of cloud business applications, you can capitalize on the power of data and take full advantage of emerging technology. As highlighted in a recently released eBook from Microsoft, here are seven reasons it’s time to migrate to the cloud:
Support a tech-savvy workforce
Cloud-based technology promotes improved efficiencies throughout your organization, teamwork and communication. Simplify work experiences and connect your people with the information needed to work productively while satisfying customer demands.
Integrate business systems
Cloud-based ERP offers great flexibility, especially when combined with the expanded capabilities of Microsoft Azure. Armed with a strong cloud-based foundation, you will be able to take advantage of business intelligence apps and deliver actionable data to users on virtually any device, anywhere and at any time.
Increase data security
Cloud providers are measured against a much higher standard for security. They are obligated to safeguard data against electronic and environmental threats that put many businesses at risk. A qualified cloud provider, like Velosio, will deliver reliable backups, use encryption and other cybersecurity tools to monitor data for risk, and will respond quickly in the event of theft or breach of devices and data.
Reduce the risk for business interruptions
Natural disasters ranging from weather to fires to regional power outages will stop business in its tracks. By moving your business applications to the cloud, you will be able to get back up and running faster should an unexpected event occur. Built-in backups and geo-replication services add an additional layer of security to customer and corporate data.
Free IT to focus on strategic tasks
Your IT team can’t focus on the future when they are maintaining complex business management systems. A move to the cloud will free up your team for more business-centric activities, such as identifying new ways to understand customer behaviors that will support sales, expand product lines and lead your business into new marketplaces.
Establish a competitive advantage
Data is the quintessential part of gaining an edge over competitors. With an ERP system like Microsoft Dynamics 365 Business Central, you gain access to a higher level of business tools including Microsoft Power BI, PowerApps and Machine Learning. These apps turn data into insight that you can use to drive business, strengthen customer interactions and grow.
Utilize the cloud with confidence
When you are ready to move to the cloud, the experts at Velosio will guide you step-by-step through the process. We offer best-fit business applications, perform the administration and maintenance activities, and simplify your move to modern. Our Stratos Cloud is a secure private cloud that offers scalability, mobility and reliability with minimal disruption and a small up-front investment.
Key Benefits of Migrating to the Cloud
Technology is advancing every single day. The younger workforce and customers expect businesses to have a seamless digital experience. As discussed in this infographic, by moving your financial and other business applications to the cloud, you will be able to respond quickly to changing marketplace conditions, satisfy customer needs and build a strong digital future. Approximately 66% of organizations consider themselves successful with business intelligence initiatives that use the cloud. So, what’s stopping you? Contact Velosio for additional information about starting your digital journey.
Looking for more information on this topic? Watch this brief webcast and learn more about the signals to look for to know when a company has outgrown its accounting system.