Expanding a business comes with a lot of growing pains, often in the form of additional work and responsibilities for your team members. At this stage, it’s essential to know which tasks to delegate to others and if it’s worth investing in tools that will make your staff members’ day-to-day activities easier. This way, they can dedicate their undivided attention to new projects and assignments that will help your company achieve greater heights.
Accounting is an everyday task that every company must carry out, but it doesn’t directly contribute to an enterprise’s expansion effort. As such, many establishments in the Philippines employ a computerized accounting system to take on the bulk of their accounting tasks. This move can present a business with plenty of advantages moving forward. Still, businesses should also do it with care to ensure that the transition from a manual to a computerized accounting process goes as smoothly as possible.
If you’re considering implementing a computerized accounting system for your company, here are the pros and cons you should consider:
Pros of Having An Accounting System for Your Business
More Convenient Report Generation
Businesses are responsible for reporting their financial status to the government and the regulatory bodies that oversee their respective industries. Making a report and ensuring compliance is demanding for many companies as the authorities answer to having different reporting standards and requirements. A company with access to a BIR CAS-compliant system for its accounting processes will have an easier time putting together a report that reflects its business performance and complies with the reporting standards set by the BIR. With this assignment out of the way, the accounting and finance team can focus on the other aspects of the business or do other reports to help the organization make informed business decisions.
Increased Productivity and Efficiency
Having a computerized accounting system to assist you in keeping a record of your company’s finances can significantly improve the company’s accounting process. Instead of taking care of accounting tasks yourself or having someone else do it for you, you can count on a machine to automate mundane tasks and dedicate your hours to activities that directly impact your company’s performance. This, in turn, improves your organization’s efficiency and productivity level.
Cost-efficient Accounting Process
The long-term cost of retaining a team of employees who can manually manage a company’s finances is much bigger than the initial cost of purchasing or subscribing to a computerized accounting program for your business. Suppose you’re looking to save money in the long run and dedicate your savings to expanding your business. In that case, a computerized accounting system will make your financial processes more cost-efficient.
Cons of Implementing Accounting System
The Initial Cost of the System
At the same time, though, purchasing or subscribing to an accounting program costs money, and upgrading your accounting processes to an automated one will likely require some form of investment from the business. If you can find a program that works well for your team and does not lack any of the features you need, you’ll be able to recoup the initial cost of the business solution after some time. Still, you’ll likely need to shell out some cash to computerize or automate your accounting process in the beginning.
The Need for Additional Staff Training
To maximize the use of your accounting program, you need to ensure that your staff is acquainted with its features and capabilities. The good news is that many accounting program providers offer their customers free training and support as they learn their new accounting software. Despite this, you might still have to sacrifice a few person-hours for your staff members’ training and perhaps anticipate errors and issues that can slow down work following the shift to a computerized accounting system.
The Possibility of Deployment Issues
Last but not least, there’s also the possibility that the deployment phase will not go as well as you expected. There can be instances when you might encounter bugs and issues that will need the assistance of your accounting systems provider. There’s also a chance that not everyone in your team will be able to immediately understand what the accounting program offers to the business as a whole. If you’re concerned with any of these, looking for a provider who can provide you with extensive post-deployment assistance and training is best.
To make the process of acquiring a computerized accounting system easier and to ensure that your staff members get to maximize the features that the said system has, you must choose a solution that is specifically suited to your business. Therefore, you need to know precisely what you are looking for in an accounting solution to quickly narrow down the options that match your wants and needs. This, in turn, will make it much easier for you to find an accounting program that complements your existing processes and will help your team focus on concerns essential to expanding your operations.
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