As your business becomes more complex, so does the requirements of your accounting solution. Standalone accounting software is extremely good at what it is designed to do, however, as a business grows and requires additional functionality, standalone accounting software often becomes a hurdle to your growth. Commonly, businesses will look at add-ons to overcome these hurdles, however additional add-ons often create disparate systems which can generate further problems.
Here are 5 impacts of disparate systems and how a single business management solution can help.
1. Time wasted from multiple data entry
When information is stored in multiple databases it can be difficult to obtain information that is accurate and up to date. A single integrated ERP solution stores all your information on one database which means information can be found easily and reports can be generated faster. Data becomes accurate across your organisation and employees have access to real-time data so there’s no time-consuming double checking, consolidation or comparing of data required.
Another downside of having multiple systems is that IT management becomes a nightmare. Customizing these systems, integrating them and maintaining them with patches and upgrades can be complex costly and deplete critical time. With a single system, the time you save can be spent concentrating on core business activities and improving your business without drowning in paperwork and finding or consolidating relevant data.
2. No single source of customer information
Having customer information stored across different systems makes it nearly impossible to gain a complete and accurate picture of your business. With a clear understanding of your customers and their behaviour, your ability to service that customer, target them for additional sales opportunities and decision making is drastically diminished.
For example, if a salesperson has no insight into customer financial records, they might spend time on a sale only to have it cancelled because they never knew that the customer hasn’t paid their last four invoices and finance are no longer extending their credit. By having customer information stored in one place enables every employees to access the information, and also act upon it quickly.
3. Difficult running reports
Quality reporting is a challenge when you’re pulling data from multiple systems and trying to combine them into something that makes sense. Quite often, by the time you have the report in hand, the information is already stale and decisions are made based on old data. Pulling reports from multiple systems to collate them into one report is also a time-consuming process which invites the possibility of errors.
Accurate, fast and reliable data exchange between departments is required to ensure optimised operation and performance. With a single source of information containing accurate, real-time data, a business management solution breaks up bottle necks, helps staff make better decisions more quickly and means having access to the latest information.
4. Data entry errors
Entering data across multiple systems can often lead to inaccuracies that can cause major issues for your business. It is ideal to prevent data inaccuracy with proper processes, systems and training, but tis is very difficult to achieve when you’re running disparate systems. There are simply too many data entry points and opportunities for human error.
Many businesses using disparate system often do not trust their data which ultimately limits your ability to make timely, informed decisions. By having one integrated business management system means you only entry data once, reducing associated errors. Any way you look at it, running disparate systems will always put you at a disadvantage when it comes to getting true visibility into your business.
5. Unnecessary added costs maintaining multiple systems
Maintaining multiple systems often also involves additional challenges and costs. Disparate systems mean that you’re spending exorbitant amounts of money on various software licences, infrastructure and customised development – not only to meet your specific needs but also to integrate your various systems.
The cost and hassle of maintaining support agreements with various providers can also lead them to play the ‘blame game’. One company passes the blame onto another and so on, leaving you as a client (the meat in the sandwich) with the support you need.
Overall, disparate systems often contain overlapping databases, which mean it’s hard to get an accurate, integrated view of business performance and operating. It’s crucial to be able to quickly generate reports across all departments, from finance to fulfilment.
A business benefits from a well-designed, integrated business management solution. You’ll be able to make more informed decisions, access detailed information faster, prepare key reports automatically and track transactions as they occur. This means you can spend more time looking after your business instead of looking for information.