There is a popular saying that change is the only permanent thing in life. And in the life cycle of business software like an enterprise resource planning (ERP) app, that adage certainly applies. Outdated ERPs are often bad for business — because of their usage limitations, their tendency to be difficult to use daily, and their absence of assurance that they will remain secure in digital-driven business landscape.
Older software typically can’t keep up with dynamic business developments. As they age, they become more of a strain for users, and because most of them were built ages ago, they hit a development ceiling, where the software producer can no longer issue working updates.
Has your business outgrown your ERP? Read on to find out.
You’re spending more time doing manual inputs
Automation is a necessary productivity driver nowadays, as repetitive manual entries tend to slow down staff. Curbing repetitive tasks is more crucial than ever because companies of all sizes are working smarter and dealing with more data for strategic direction than before. If your ERP isn’t automation-ready, it’s probably already eating up valuable time.
With modern ERP solutions, tasks can be automated and reports can be generated with a touch of a button. This leaves your staff with more time to assist clients and get more work done.
Real-time reporting simply isn’t possible
Real-time data is critical to business success because most enterprises — even small- to medium-sized businesses (SMBs) — use real-time data to make smarter decisions in their operations. In today's business environment, data obtained five minutes ago may already be obsolete. With so many evolving factors to consider such as stock prices and foreign exchange rates, only real-time data is of any use.
In fact, without real-time data, making precise and informative decisions becomes more difficult. Not to mention staying ahead of your competition. Having live data is immensely valuable because it allows you to track and note any changes involving your budgets, expenses, customers, your suppliers, and everything in between at all times.
Controls and procedures are lacking
Older ERPs are, in fact, designed for simpler times. Many of these applications can’t even account for derivatives and other complex financial instruments, and they tend to be closed-loop systems that need constant manual input. And because they have a basic design, they lack the functionality to setup workflows to help you streamline and automate processes and internal controls.
Another common gripe about outdated ERPs is that they are rather difficult to use. And if employees find them difficult to use, they may spend an inordinate amount of time figuring out how to use them. That can spell trouble for your business data.
You use multiple data sources for accounting and finance
Connecting multiple data sources isn’t such a foreign concept for large businesses, but many SMBs will find this task too cumbersome and an inefficient way to use their limited time. Having an outdated ERP system which does not allow to integrate with external sources is detrimental to productivity and accuracy – leaving you with a blind spot on your business’s true state.
ERPs are a significant financial investment for SMBs. Upgrading to a new ERP — like Business Central, one of the best cloud solutions in the market today, will easily and effectively import transactions, eliminating data silos.
You have difficulty simplifying financial statements
Many older ERPs aren’t designed for anything other than recording transactions and not much else. For instance, line limitations in some older ERPs allow users to allot as little as 20 account entries per financial statement type. These systems also lack of the functionality of standardizing your charts of accounts.
Using out-of-date software to do your electronic financial reports may prevent you from complying with financial regulations in most states. Furthermore, it’ll prevent you from easily seeing the components of each entry type. With a modern ERP, you’ll be able to break down in real time the components of, say, your PPE, as well as their corresponding current values.
We are no stranger to business growth — which is why Miami businesses choose WhiteOwl for their ERP integration, deployment, and support needs. Why work with anything but the best? Choose WhiteOwl for yours. Call us today for a FREE assessment.