One of the best examples of scaling up with ease is the human body itself! Have we ever felt ill-at-ease with the process? No. Most don’t even notice it- unless it’s the case of rotting teeth or dry skin and the likes. For most parts, we don’t notice the upscaling. Something similar is the case with organizations where like humans, growth is a given (unless a serious turn-around has taken place or the management was less than competent). Of the entire working in an organization, one of the most important of activities is that of accounting without which an organization cannot be expected to move in the right direction at the right speeds, much less at any speeds at all.
That said, accounting too like any natural system, needs to be upscaled and upgraded pretty regularly if things are to remain on an even keel. We tell you the reasons below:
1. Organizations out-growth old moulds
A start-up is a very different organizational animal as compared to an SME or a middle-order organization. The latter while being larger, are also methodical and as such slower in actions than most start-ups. In terms of accounting too this is most visible. Any accounting software bought during the organization’s infancy could in most case be operated exclusively by its owners but with time the same or an upgraded version may be operated by associates and employees while the owner him/herself engages in more pertinent strategic and decisive activities.
2. Range of accounting needs may have crossed what the existing accounting software may be able to handle
The need for the best financial software is invariably felt after a time as the range of accounting-related activities may have gone up multiple number of times. Take for example the case of manufacturers of FMCG products. Besides indulging in sales and marketing on their own, they may also be selling thru large retailers, and in the present, also through eCommerce companies. The latter was never on the horizon till a decade back the way it is today. Imagine trying to cater to every accounting need of the present with software that is at least a decade old! It simply cannot manage and has to be entire scaled-up immensely or changed in its entirety.
3. Legacy systems do not get the kind of back-up that is expected
The best accounting software these days in most cases are cloud-based which means they don’t run the risk of becoming a relic in some time without support and back-up. With cloud giving rise to the SAAS architecture, up is the only direction in which the best financial software can be expected to move. And that is because back-up, additions and the best add-ons are part of its growth trajectory.
4. Newer legalities may be needed to be added to the existing systems making it unstable and unworkable
Accounting software in particular need regular scaling up to keep pace with regular changes in the world of finance, accounting, compliances and so on. By upgrading the best accounting software, what you get is the latest in the field and with that scaling up an organization in the right direction at the right speeds doing the right things become very easy.
5. Costs of constant upgrades may add up
Scaling up is important in the case of the best accounting software to the next best thing instead of hanging on to outdated software because the latter becomes very expensive and cumbersome to maintain in its original state given that software encounter too many glitches when its size goes beyond a certain threshold. Constant upgrades to the next best thing is thus a need instead of a luxury.
6. Always on, on-the-cloud is a much-desired system accessible from everywhere
Newer cloud-based software is practically always on and can be accessed from anywhere at any time. Upgrading to such a software saves an organization a lot in terms of easier accesses to information at the right time from any place. In doing so, one can take timely decisions that may sometimes avert unnecessary crises.
7. Data protection may be an issue
Data is the new oil. And oil should always be in places from where it never leaks. Kept in legacy systems, they are always prone to be either stolen, manipulated or even held to ransom. The ONLY way it can be protected and put to its proper use is by upgrading it to the right accounting software- preferably on the cloud.