Accounting Software: Do You Have a System Problem or a People Problem?

A key part of an organization’s financial improvement is regularly assessing whether your accounting software is still meeting your needs. Of course, one way to improve is to upgrade your old system to a newer version or migrate to a new software provider.

An accountant frustrated over accounting software.

However, moving to a new accounting system is not going to be the right solution for every business. If you are experiencing problems or limitations with your existing system, the software may not be to blame. Instead, you may have a people problem.

​Do You Need Better Features or More Skilled Management?
Whether you are currently trying to decide whether you need to upgrade your accounting system or you have already migrated and are now assessing whether your new system is meeting your needs, it is important to determine whether the improvements that you are seeking are related to the software itself or the people using it. We hear time and time again from companies that their accounting system is not the right fit for their needs. However, if you change systems and are still noticing issues, you likely have a people problem, not a system problem.
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You may think you need to upgrade your accounting software to get access to better functionality or migrate to a new platform with different features but if the problem you are experiencing is related to personnel not the software, changing software is not going to help. As our team explains when discussing moving to a simpler accounting system,

“Keep in mind that the problem isn’t always the software itself! Sometimes user error or lack of user training is to blame for the frustration your business is experiencing. Being open to that as a possibility is critical in determining whether you truly need to switch accounting software, or whether you can improve your use of your existing solution.”

Obviously, it is preferable to discover this fact before going through the significant cost and hassle of migrating to a new platform, but regardless of where you are in the process, it will behoove you to take the time to figure out what the root cause is so you can fix your accounting issues more effectively.

Identifying the Root Cause
Work with the people closest to the problem to identify the root cause. Start a conversation around the specific pain points that your team is experiencing. Make sure to loop in anyone who interacts with your accounting software to get a breadth of opinions across different use cases. Ask for possible solutions and be open to the idea of continuing to work with your existing software instead of replacing it.

If you discover that the types of issues that you are having are around functional needs like integrating payroll, expanding reporting capabilities, offering more robust quoting/invoicing features, adding users, or utilizing industry-specific functionality, then you likely will need to upgrade or replace your accounting software. However, if what you discover is a lack of knowledge, training, or experience with the existing software or the business’s current needs, there are plenty of solutions available that do not include changing your accounting software entirely.

Finding a Solution
Sometimes business owners become singularly focused on the idea of replacing their software and fail to recognize that they have other options that allow them to work with what they already have to achieve better outcomes. Common solutions include:
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• Outsourcing your accounting to a provider that knows the system better than your existing personnel. In many cases, business outsourcing can not only reduce costs but also improve outcomes because you can find more experienced personnel to do your day-to-day accounting work without the constraints of needing to look locally and going through the arduous steps of searching for the right candidate.
  
  
• Using an accountant consultant to train your accountants on how to better utilize the software to meet business needs. Consulting accountants can also use their depth of knowledge to help troubleshoot accounting issues and their impartiality identify errors that may be compromising the accuracy of your financial data.
  
  
• Hiring an accounting professional that has relevant industry and/or software experience to bring additional expertise to the role and offer sound financial input.

Contact us for help determining whether you have a people problem or a process problem. We will help you identify the root cause of your accounting issues and work together to find a solution! Whether you need outsourced accounting services or accounting recruiting, we have the accounting specialists to help your company. Our team of fractional accountants can provide as much or as little help as you need, everything from ongoing part-time work to one-time advisory services, while our team of accounting recruiters can help you hire the right personnel for your organization. Find out more today!