Statista reports that 64.4% of small business owners use accounting software. But how do you know whether your software is meeting your specific business needs? In many cases, upgrading your accounting software can save you money when it comes to not just efficiency and time, but also with managing financing and paying taxes. Here are five signs you may need an accounting software upgrade.
Sign #1: Your New Project Involves More Companies than Previous Projects
Your usual accounting software may be well-suited for projects involving a few companies, but when you have one that incorporates several more, it may not be up to snuff. You may find yourself struggling to balance your accounts payable, deadlines, and invoices. However, with an accounting software upgrade, you can manage interactions with as many companies as you need, scaling up or down according to your needs.
Sign #2: You’ve Struggled to Provide Timely Reports on Past Projects
Reporting on projects in a timely fashion can impact everything from client satisfaction to funding requirements. Your accounting software should make this easy. If you have struggled with timely reports in the past, this is a sign you need an accounting software upgrade to one with specific features that meet your business needs.
Sign #3: It Doesn’t Have Features Custom-Designed for Developers
Even some of the most comprehensive accounting software solutions in the market may not have tools designed for your business. For example, your accounting software should be able to track the financing processes unique to a developer’s business, particularly managing both your funding and income. Features should include:
- Control over all aspects of the funding process
- Loan draws
- Capital contributions
- Equity tracking
- Tools to meet the different reporting requirements of each lender
- Internal cost codes for different elements of the development process
Sign #4: There Are No Recent Updates for the Software
A lack of recent updates is a big red flag for multiple reasons. In the age of digitization, all industries are undergoing constant change, as are their accounting requirements. Software that isn’t keeping up with those and other changes may leave you vulnerable to accounting headaches and inconsistencies.
However, a lack of recent updates may present an even more serious problem: insufficient cybersecurity protections. If hackers find a vulnerability in an older version, a new one is needed to protect you and your entire digital infrastructure.
Sign #5: You’re Struggling with Automation
Your accounting software should automate functions such as:
- Scheduling invoices
- Managing recurring invoices
- Filling in customer note fields on invoices
- The inclusion of statements outlining terms and conditions
- Generating accounting reports
If your solution doesn’t provide the automations you need, you should consider upgrading your accounting software.
Upgrade Your Accounting Software Today
An accounting software upgrade can help you manage more companies, generate reports, manage developer-specific needs, and take advantage of automation. Budgetrac may be your ideal solution. If one or more of the above signs applies to you, reach out to your accounting team to discuss this article.