5 Mistakes to avoid when setting up accounting systems

5 Mistakes to avoid when setting up accounting systems

It’s 2020, and the cloud is no longer a new, unexplored technology. With about 88% of businesses harnessing its power to achieve their goals, the cloud has provided organizations of all sizes with a trove of benefits that include lower operating and maintenance costs, free-from-anywhere access, and safer backups.

Almost any workflow can now be migrated to the cloud. If you’re looking to modernize the accounting workflows of your Charlotte, North Carolina-based business, cloud computing has the solution for you. To prevent hiccups during migration and implementation, make sure you don’t make the following mistakes:

1. Not fully committing to the cloud

Moving to the cloud is a major decision that impacts the company significantly, so if you want to enjoy its full benefits, make the leap to the cloud and stay there. Bookkeepers and accountants who are unfamiliar with the cloud may find a steep learning curve ahead of them, so business leaders must be able to invest time and effort in training. Do not make the mistake of simply trying out the cloud — make it a goal to adopt it.

2. Choosing the wrong software

Even with a limited budget, never settle for something that gives you less than what you paid for. Off-the-shelf software may be more affordable, but they can neither provide customized solutions nor easily scale up and support your needs when your business grows. Instead of settling for less, plan for the long term and choose enterprise-grade software that addresses your unique business needs.

But while you shouldn’t hold back on app purchases that can benefit your business, you also shouldn’t immediately choose the most expensive accounting app on the market. Doing so might just be a waste of money, leaving you with a glut of app features you won’t even use. Before purchasing a subscription or an application, understand your business needs. If you only need to automate data extraction, or manage payroll and payables, basic software will suffice. But if you need one that gives detailed financial analysis and forecasting, choose software that offers such features.

3. Using multiple online accounting systems

Some businesses let clients choose their accounting system themselves, resulting in multiple systems that each require a different subscription. Don’t get into this costly situation by gathering, organizing, and synchronizing transactions into a single system. This way, you save time on inputting data, your workforce doesn't have to learn how to use multiple applications, and you pay for only one subscription. Having a reliable and compatible cloud accounting app will make it easy to persuade your clients into using a single system that solves all their accounting needs.

4. Not reviewing user access and permission levels

Security should be at the center of cloud migration, not merely an afterthought. Oftentimes, migrations fail because access and permission levels have not been defined at the onset. Either employees have too much access that they’re privy to confidential data or they have too little, prohibiting them from doing their work properly.

For instance, a customer representative may have credentials that let them gain access to payroll information. Conversely, an accountant may be wrongly barred from accessing revenue data. To prevent these problems, regularly review user permissions. Doing so will also help ensure that you’ve revoked the access privileges of former employees.

5. Migrating to the cloud alone

If your IT staff hasn’t done cloud migrations before, or you simply want to guarantee a smooth migration, it’s best to partner with a technology company that specializes in cloud solutions, like SpectrumWise. Our cloud experts will collaborate with your team to decide on best approaches, most compatible software, and trusted security solutions that will make the migration a success.

If you need a hand in migrating your workflows to the cloud, SpectrumWise is here to help. We have been the trusted IT partner of businesses in Charlotte for over 20 years. Schedule a FREE consultation with us today, and begin a hassle-free migration to the cloud.

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