There usually isn't one dramatic moment when a business realises it has outgrown its accounting software. It's more likely to be a collection of little frustrations that gradually become normal. Reports take longer to produce. More information lives in Excel. People have to ask finance for figures because they can't access them themselves. Month end involves rather more copying, exporting and checking than anyone would ideally like.
At that point, businesses often start looking at what else is available, and one of the first questions is whether to stick with more traditional accounting software or move to a cloud based finance system.
So, what's actually different?
With traditional accounting software, the software and its data will generally be hosted on infrastructure managed for your business, whether that's on premises or through a hosted environment.
A true cloud system is different. The application is delivered online by the software provider, so there isn't a traditional Sage server sitting somewhere that your business needs to maintain.
That can make accessing the system from different locations much easier, but accessibility isn't the only reason businesses consider cloud accounting.
Anyone who has managed business software for a while will know that upgrades need planning. Depending on the system, there may be server requirements, compatibility checks and downtime to consider.
With cloud software, updates are managed centrally by the provider. New functionality and security improvements can therefore be delivered without your business carrying out a traditional software upgrade each time.
That doesn't mean cloud software requires no management at all. You still need to think about users, permissions, integrations, security and how the system is configured. It simply changes which bits you're responsible for.
This is probably more important than whether something has “cloud” written on the box.
Your finance system needs to cope with the business you're becoming, not simply the business you are today.
Perhaps you're adding another company. Maybe reporting is becoming more complicated, transaction volumes are increasing or managers want much better access to financial information.
If you're currently using Sage 50, that might mean moving to Sage 200. For another business, Sage Intacct may be more appropriate.
The important question isn't really “cloud or traditional?”. It's “what are we trying to improve?”
This is where it gets interesting because there isn't one obvious answer.
Sage 200 remains a very good option for businesses that need strong financial and commercial functionality, particularly where stock, purchasing and sales order processing play an important part in day to day operations.
Sage Intacct is cloud native and particularly strong where businesses want more sophisticated financial management, automation, multi entity accounting and reporting across different departments, locations or other dimensions.
Neither is automatically better. They solve different problems.
We've covered some of the things to consider in our Sage 200 vs Sage Intacct blog, but this is exactly why we'd rather understand your processes before recommending either.
When you're looking at new finance software, it's very easy to concentrate on demonstrations of clever dashboards and new features.
We'd also ask some slightly less exciting questions.
👉 How will your existing data be migrated?
👉 What happens to your historical information?
👉 Which other systems need to integrate with it?
👉 Who needs access and what should they be able to see?
👉 How will your team be trained?
👉 What happens when somebody needs support after you've gone live?
Those things may not make for the most exciting software demonstration, but they'll have a considerable impact on whether your new system actually makes life easier.
If you're thinking about changing accounting software, write down the things that currently annoy you.
Perhaps month end takes too long. Maybe you're maintaining several spreadsheets alongside your accounts. Reporting is difficult, stock information isn't giving you what you need or you're struggling to see what's happening across several companies.
Those problems are much more useful than starting with a list of software features.
If you're wondering whether you've outgrown Sage 50, whether Sage 200 is still right for you or whether moving to a cloud system such as Sage Intacct makes sense, talk to us. Tell us what's working, what's not and what you'd like to make easier.
You don't need to decide which software you want before speaking to us. That's rather the point 😊
📧 support@espi.net
📞 01954 213999
