How Do you Choose A Finance System for your Business?
Updated: Dec 7, 2020
Sometimes the best answer is NOT from your Accountant.
When I conduct a Financial Health Check with businesses, I often hear that the reason they have chosen a Finance System is because “that’s the one my Accountant recommended”. Sounds logical right? After all, they are meant to be the experts in this area.
But when I delve a bit deeper into the business, it’s processes and goals, I often find they are on the wrong product.
This is because there is certain elements and financial data that is important to capture to ensure the business is ran optimally and gives management the information they need to make important decisions that can ultimately affect the profitability.
For example, I often hear clients say their Accountant recommended Xero when ultimately it is a very simplistic system that is often not suitable for managing inventory, different customer levels/demographics, assembly or products, importing or projects. Sure, you can buy a separate application or add-on for these things, but what if there is already another finance system that does this as well and you only have to run ONE system?
What I have found is that the Accountant “likes” a particular product because it is easier for THEM to use. They also may be a Platinum Partner or something similar where they receive a kickback or commission from the Company when their clients sign on or use the system.
I won’t go into the ethics of these “recommendations”, but essentially you should be using a finance system that suits YOUR business, not your Accountants.
So what should you do to select an appropriate finance system for your business?
Don’t just select the cheapest option
If you don’t have access to the right information to make good business decisions it could end up costing you a lot more money. Besides, you may realise you need to pay for an extra system or application to get the processes and information right for your business.
Work out what you need from it
It is really important that you assess the abilities of a finance system with the information needs and processes required of your business.
Do you need to track profitability for each project or a job?
Do you need to monitor inventory levels for ordering as you are an importer?
Do you have different pricing structures for different customer groups?
These things need to be considered when selecting a product that gives you the ability to track, use and report on this information.
Take advantage of the free trial
Many finance systems offer a 30 day trial for you test the product against your needs, take advantage of this before you commit.
Need more help in choosing the best finance system for your business? Contact us for a 30 minute free consultation.