Top Tips for Upgrading Your Accounting and Reporting Systems

When your small business grows, there will be a point in time that warrants an upgrade of the company’s accounting and reporting system. Improving the accounting and reporting system helps businesses to better their reporting process and provide them with insights to make smarter business decisions. The thought of changing the accounting systems can scare most business owners or directors.

However, you can seek advice from accounting firms in Dubai for a smooth transition. Moreover, the change can be made seamless by following certain tried and tested steps. Here are some useful tips you can consider before upgrading your accounting and reporting systems:

Agree on the New System Change

The directors of a company often feel their business has outgrown the existing accounting system or they may start experiencing the limitations of their system as the business grows. All the departments in the organisation are likely to feel the impact of a system upgrade. This means you need to consider the opinions of all the teams. It will make the transition trouble-free if you all agree as a team on the current limitations and the potential impact all the departments are bound to experience.

Make a Detailed Specification

You must write a detailed dossier once you decide that a system upgrade is required. Accounting companies in Dubai advise directors or business owners to consult with everyone on the team to make the dossier more effective. It will help you write a better plan if you pool ideas from across the organisation, even from a micro level. The specification should contain the ‘must-haves from all the departments including finance, procurement, warehousing, sales and marketing.

Futureproof Your Plan

Analyse where your business stands right now and consider what the lifespan of a new system might be. If your ‘must haves’ may change soon, you need to invest in a higher-quality upgrade. Since this affects the cost of the system, it is advisable to consider the opinion of the best accounting & bookkeeping firms in Dubai.

Analyse What You Need in a New Solution

The directors must have a clear understanding of the level of integration they require in a new accounting solution. Failing to do this will make your organisation suffer from poorly integrated business processes and limited visibility into the workflow. It will also affect your organizational agility and competitiveness.

Set a Realistic Budget

You need to allocate a sufficient amount in your annual budget for a new accounting package. Your new accounting solution should cover software and implementation, including customization and training. Mainly allocate funds to four categories such as new software, new hardware, implementation and training, and ongoing support and product upgrades.

Format and Map Your Current Data

Not every accounting system is the same when it comes to recording information. Different systems support different data formats and it is important for you to ensure the data is error-free and saved in a recommended format before making the transition. You can create a data map so that you can see how your information will appear in the new format.

Train Your Users

Allocate sufficient time to train and test your users before completely moving to the new accounting system. Provide your users with standard system procedures so that you can ensure they understand the new system and comply with it. Allowing training and testing time will save you from glitches caused by small issues like inaccurate data entry.

Finalize a Cut-off Date

You need to decide on a cut-off date, which is the date on which you may start using the new system and stop using the current one. You are free to choose any date but it is a good practice to reconcile your bank accounts for the end of one month and proceed with a new system on the first day of the next month.

Inform Your Accountant

You need to always keep your accountant in the loop while making any decision regarding a system upgrade. Your accountant’s expertise in the field will help you execute a smooth transition. Moreover, your accountant will be the one most impacted by the system upgrade.

Consult with the Best Accounting Firms in Dubai, UAE

Moving to a new accounting system is challenging for any director or business owner. However, the process can be made hassle-free by consulting with the best accounting firms in Dubai such as Jitendra Chartered Accountants (JCA). We are a full-service Audit & Accounting company in Dubai with over 21 years of experience.

Irrespective of what type of business industry you are in, we can prepare your financial statement accordingly and maintain your books of accounts as per international standards. Apart from offering accounting services in Dubai and across the UAE, we provide other services such as VAT, AML-CFT compliance, Corporate Tax, Economic Substance Regulations (ESR) filing Ultimate Beneficial Ownership (UBO) filing etc. Contact us today for robust accounting solutions.