The following are six limitations of using traditional accounting software:
- Your data is not current, and neither is your software
If you are always using old data, or worse can’t access your data on a timely basis, how can you be expected to make your business decisions? - Accounting software is limited to the computers it is installed on
There are a couple of issues with this. You can only access your information from select computers. When the computers are not on the same server, data often flows back and forth through backup files and/or USBs. This increases the risk that data is not reliable. We have heard more than once from a client who continued working on an outdated backup file. Additionally, when the file is being passed back and forth there is an increased risk that the data is not secure. Passwords may not be set on the files, or the backup may end up in the wrong individual's hands. You are on the road all the time, shouldn’t your data be just as flexible? - Limitations to how many individuals can access the data
While there are systems that allow for multi-user access, you are locked out of updating certain modules while another individual is in the file. If you have ever tried to update your sales module while another user is in the file, you have likely run into this issue. When these situations occur, key users cannot access the financial and customer details while the other user is updating. - The process of maintaining backups is often overlooked and completed incorrectly
Backups! Enough said. Backups are an area that can be complicated. Many clients forget to take regular backups at all. This is a huge risk. If there is a computer glitch, or your computer stops working and you have not taken a recent backup, everything is gone! Wouldn’t you rather be making the next house sale, than reentering your bookkeeping? - Upgrading software is expensive and time consuming
New versions of software are released a few times a year. These updates require time for the installation of the new version. Depending on the accounting software in place this can also become expensive. Software is not automatically upgraded each time a new version is released. Many clients choose not to upgrade their accounting systems at all. This leads to its own set of issues, such as when payroll tables become outdated or are no longer supported by the version of accounting software being used. - Customer support
The complications that are derived from the above issues result in customer support calls and down-time of your system. Customer support can be slow to resolve your issues, taking additional time way from your business. If your accounting system is down during this time, your only option is to continue in a manual form. This isn't the best use of your time.
These are common pain points our real estate clients have come to us with. They have discussed the feeling of burnout and that they just don’t know what to do next. Many have been cautioned away from cloud accounting by previous bookkeepers and accountants. We agree that these programs weren't the best solution when they were new, but that is not the case today.
Discussing the options available to you when you switch to a fully-integrated accounting system is worth your time.