Choosing to implement new technology for your accounting needs is a big step toward improving your business. Accounting technology helps streamline the accounting system, thereby offering various benefits. However, poor implementation can impact your business negatively. To make your implementation a success, there are several mistakes that you must avoid.
Importance of New Accounting Technology
Before looking at the potential mistakes, it is important to understand why businesses implement new technologies. Technology advancement has played a great role in various life and business aspects. In businesses accounting, technology such as computerized systems help easily track and record financial transactions.
Various types of technologies have impacted business accounting, such as cloud-based systems, mobile accounting, big data, artificial intelligence, data analytics, robotic process automation, etc.
Businesses that have successfully implemented some of these technologies have witnessed improved accuracy, faster processing, forecasting, analytics and better external reporting, among other benefits.
As a result, more business owners wish to enjoy the same benefits as their counterparts. Unfortunately, rushing to implement a system will end up causing more harm to your business than what you are trying to change. Therefore, being prepared before the implementation will save you a lot of trouble.
In a continuously changing technology landscape, businesses want to remain competitive and do not have much choice but to keep up with technology trends.
Mistakes that Result in Poor Accounting Technology Implementation
- Failure to define your business’ specific requirements
Rushing to implement a technology solution because a counterpart is benefiting from it is a bad idea. Remember each business is unique and, before implementing a new technology, you should first consider your kind of business. Identify functions to automate and research suitable systems that fit your needs. Failing to do this means you could end up settling for a generic solution that will not properly address your business needs. - Failing to plan the implementation process
Implementing new technology involves more than installations, configurations, setting up necessary devices and adding users to the new system. It requires – among other things – focus, resources, accountability and follow-up for its success. - Failure to include users in the implementation process
Users can determine how successful a new system will be. Involving users will help get the business process workflow right, and also plays a part in avoiding resistance to the new solution. If employees are opposed to the implementation, it will fail. - Assuming it is a one-time cost
Failing to anticipate post-implementation costs may result in abandoning the new systems you implemented. Any new technology always comes with other hidden costs, such as maintenance fees, subscription fees, training, etc. Find out the involved costs to help you budget properly. - Failure to properly train users
Many times, user training is overlooked to cut costs or with an assumption that they will learn on the go. Having the users properly trained will ensure only minimum support is necessary. All users should be well trained before the vendor or consultants finish with the implementation. Continuous training should be carried out to ensure that users leverage advanced features of a system that will help them be more productive. - Failure to consult
Once you decide to implement new technology, most likely other businesses have done it, too. By consulting with other businesses, you will learn what has worked or not. You also may want to check vendor reviews, which can be readily found online. As more businesses choose to outsource accounting, it is best to consult on technologies to use for integration issues. This will help avoid the need to implement different solutions. - Failure to consider security issues
In accounting, security is vital as you are dealing with personal and financial data. A data breach can result in financial loss or reputation damage. Consider your internal security, train your employees on security, and implement a security policy. Ensure that the vendors you choose to partner with prioritize security.
Take Away
One vital point to remember when you want to implement an accounting technology is not to rush to keep up with trends without proper planning. A good implementation strategy will help you avoid the above-mentioned mistakes, ensuring your business enjoys productivity and workflow improvement.
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