5 Negatives of Old-Fashioned Accounting

By Big Red Cloud Team - 7th Jan 2019

Find under: Big Red Cloud Team Advice

Things have changed a lot in finance departments since Monty Python’s accountant wanted to become a lion-tamer. Sure, it’s not the most exciting job in the world but it is fast-paced. Keeping up with changes in software, laws, rules and regulations is hard work and vital for any successful business.

Accounts Departments don’t get the glory, but what if your accounts department hasn’t been on top of their game? What if the finance systems are 20th century living in a 21st century world? What are the negatives of that situation and other aspects of old-fashioned accounting?

 

1. It’s Expensive

The long and short of it is that if you’re hosting your accounting software on your own server, it’s costing you money. You’re paying separate maintenance contracts for your servers and software. There’s a double whammy in the profit & loss: both these assets get depreciated every month.

Instead, your rivals are saving money by using the cloud for their accounting software. Here at Big Red Book, we offer the latest version of our software at a lower monthly cost than you are charging to your bottom line.

In short, by failing to invest in your accounting department, you are costing your business money.

 

2. It’s Inefficient

Using dated methodologies are inefficient. We’re not talking cutting edge technology here; this is software which helps your business run efficiently. The older the software, the more labour intensive it is.

What makes cloud technology so appealing is its ease of use and that it is designed to make your business processes less time-consuming. The less intervention you need to make in a process, the less chance there is of a mistake. To err is human, after all.

 

3. Can You Trust the Information You Are Given?

The older your software, the more likely it is that an accountant takes the information and manipulates it in spreadsheet software. If that’s the case, can you be sure there hasn’t been an error in the extraction and subsequent manipulation of the data?

By contrast, cloud technology allows authors to host the latest version of their technology. Our software provides a reporting interface which contains a suite of reports that eradicates the need for data extraction into third-party software.

 

4. Your Data Is Vulnerable

Hackers are everywhere, and information is the most valuable commodity known to man. It’s not the setting for a dystopian future in a science fiction novel but the reality we face now. Your data is vulnerable because your firewall and anti-virus software isn’t as good as the cloud companies use; your data is their lifeblood, so protection defines their reputation. Only the best will do.

 

5. Staff Morale

Old-fashioned accounting is labour intensive. The old cartoon about chimpanzees sat in rows of desks carrying out monotonous tasks must have been set in an out-dated accounts department.

Investing in software makes jobs more efficient. People feel a sense of pride and worth because they appreciate their role. Not just a cog in a dull grey machine but one which is bright white and modern. Well-motivated staff are any company’s best asset; investing in your accounting software may be the best move you make.

After all, you don’t want all your staff turning up at the job centre wanting to be lion tamers, do you?