Is it time for a change? Upgrading an accounting system in the Philippines is often considered to be a watershed moment in any organization’s history. When a business finally transitions to a new accounting or enterprise resource planning system, it’s usually a marker of some serious thrust to scale up and expand the business or bring it closer to contemporary industry standards.
It can also be a very stressful time for everyone involved in the transition. Employee turnover can increase during these periods simply due to the stress and scale of the change. Productivity and morale can sometimes dip as well if the transition isn’t handled well.
Here are a few tips that will make your transition to a new system much smoother:
1.) Try before you buy
Unfortunately, it’s common practice in the Philippines to invest in the first accounting or ERP system offered. Even if the software was developed by a big name, it’s no guarantee that the system will be a good fit or offer good utilization. By the time the organization signs a contract, it might be too late and they could find themselves locked into an unsuitable system.
When you are offered accounting software, ask the software sales rep if there is a trial version of the system that you could use. You can also check free versions of different accounting software suites online to see firsthand if they are a good fit. This will save a lot of problems down the road and ensure an easier transition.
2.) Invest in user training
To paraphrase a familiar saying, what matters more is the workman, not the tools. It’s crucial to ensure that all potential users of the system have sufficient training and familiarization and ask your vendor to provide extended support when possible.
These days, all accounting software options offer broadly similar features and functionality. For accounting-specific tasks, the choice of software will not matter as much as the ability of your employees to use it to its full potential.
Many organizations in the Philippines often fail to seriously consider systems familiarization and training in their upgrades, relying on a handful of point persons in the company to learn and teach the system. This invariably leads to inefficient utilization of the system and makes ruins the whole point of the upgrade.
3.) Avoid unnecessary customization
In the Philippine business setting, it’s unfortunate that system customization is sometimes driven by office politics and personal biases. It’s not uncommon for department heads to request customization simply to signal their involvement in the accounting software transition and acquisition process. This can often lead to unnecessary delays and cost overruns and increase the chances of software bugs showing up in the delivered product.
These days, very little customization in accounting systems is usually necessary for most businesses. Most customization requests can indeed be avoided if more effort in familiarization and a “try before you buy” approach were to be taken.
4.) Consider choosing a modular accounting system
Traditional all-or-nothing systems tend to offer plenty of functionality. But this will often come at the expense of the user experience. The organization may also need to pay for various features it may never use. If you are locked into a contract to use such a system, this can lead your business to waste money for years.
Fortunately, they are not your only option. Modular systems, such as SAP Business One, allow an organization to choose only the features and functionality they need — usually at a reduced price. This allows users better utilization of their software while still affording them the option to add more features if the business’s needs expand.
Upgrading accounting systems in the Philippine business context can often be frustrating. However, when undertaken with a clear idea of what to expect, a system upgrade isn’t just worthwhile, it can signal a new beginning and more positive outcomes for any organization.
