Organizations both large and small can get frustrated with the timeliness and quality of the information they receive from financial systems. Often, snap decisions are made to purchase a new system to solve the problem. Many times old processes are transferred into the new system. The new system then doesn’t work the way it was envisioned, costing the organization time and money. All of this could have been avoided with proper planning.
As a Financial Strategist, I am often brought into organizations to review their systems and conduct due diligence for the purchase of a new one. In many instances, my evaluation has resulted in recommendations for improvements and enhancements for the existing system. By addressing process improvements, I have helped organizations avoid a new system purchase and provided immediate relief to pain points of information accessibility.
A bad process forced into a new system can result in potential disasters, such as delayed reporting and non-compliance. For example, I assisted an organization that was being fined for noncompliance in sales tax reporting. This company had recently implemented a new system, but the financial staff could not obtain accurate information for reporting because of incorrect data entry. Meanwhile, the fines and penalties for not reporting were adding up as the staff attempted to create the required information in an Excel spreadsheet.
Had this company conducted a thorough review of their current system and processes, even engaging the software vendor to learn if there was more they could be doing with their system, some of the delays and fines could have been avoided.
Mindy’s Tip: Review your current process or have a professional do it and make sure you actually need a new system before you make the decision to purchase. If you decide to purchase a new system, make sure you roll out the improved version with a strategic plan, so you do not interrupt the flow of your business.
Mindy Barker, Founder & CPA
(904) 394-2913 or (904) 728-2920