Streamlining the journey to accounting automation

For businesses reaching a pivotal point in their growth, the automation of accounting and finance systems offers substantial benefits. They can devote far more time to expansion, innovation and revenue-generation, and spend less hours on the manual operations of financial management. With a more automated, smarter system a business can shave weeks off the month-end close process while enjoying much higher levels of accuracy in reporting. Possessing all the detail they need at their fingertips, key people can make better decisions – and at greater speed than was possible before. Yet implementing a new system is a big move. There is an understandable fear of disruption to essential financial processes if implementation drags on or slips off the rails. Most of us have either experienced this firsthand, or heard stories from colleagues, where new systems end up proving over-complex, unwieldy and employee-unfriendly. Avoiding the pitfalls with new finance systems Throughout this transformative process it is vital to be aware of these all-too-common pitfalls. A lack of clear objectives, insufficient authority at the helm, scope-creep, and distractions from core business activities can all derail the project. A business must also allocate sufficient time not only for the implementation itself, but also for the essential training that will enable staff to fully utilise the new system's capabilities. Avoiding these hazards is possible. With a strategic approach, thorough preparation and collaborative working with a technology supplier that puts an emphasis on customer success, a smooth transition is possible, quickly delivering results. Effective implementation It starts with planning. A finance system project typically involves successive design, build and go-live phases, followed by continued guidance and completion. With proper planning, core financials can be up-and-running in under a month. Initial meetings should involve all the main stakeholders and expectations should be managed. It is important to establish that the business must focus first on what is critical to avoid being overwhelmed. Scope-creep can turn a six-week project into a six-month-long implementation, costing four times more than it should. A strong lead with attention to detail Central to an effective strategy is the identification of a strong project lead. This individual should have an intimate understanding of the company's inner workings and possess the authority necessary to guide the team through the change. This leadership is crucial, as it ensures that the technical requirements are not just understood but also met by the new system. However, to fully prepare for the switch, comprehensive documentation and due diligence must be undertaken. This preparation phase is where the intricate detail – such as the chart of accounts, subsidiary structures, tax and regulatory requirements – are ironed out, along with data migration. It's a stage that calls for meticulous attention to detail, ensuring that when the new system goes live, it does so with precision. Internal stakeholder engagement and external collaboration Another critical step in this journey is stakeholder engagement. It's not just the finance team that needs to be on board – it's also those in purchasing, sales, and other departments whose processes will be affected by the new system. Their early involvement is a cornerstone of a well-rounded implementation plan. Communication plays a pivotal role in this process. It is through clear and consistent communication that the vision of a seamless transition begins to take shape. The collaboration with consultants or implementation partners must be characterised by clarity, ensuring the new system's framework – its accounts, user roles, and reporting requirements – is understood and agreed upon. Reporting structures and BI The real test, however, comes when it's time to put plans into action. Starting with the reporting requirements offers a unique opportunity to reassess and realign the financial reporting framework with the business's strategic objectives. It's a chance to ensure that the data not only represents the business accurately but also serves its reporting needs. Following this advice will also avoid the delays associated with business intelligence (BI) structures. It is not necessary to use every BI dimension at the outset. Starting with two or three dimensions, such as departmental or location structure, and seeing how the new system runs them is a better option. Timing, as they say, is everything. And this is particularly true when transitioning to a new accounting system. It's essential to choose a moment that aligns with the business's rhythm, avoiding busy periods to ensure that the necessary resources are fully available. How much data should I bring across? Once the new system is in place, it is important only to import the necessary data. The goal is to foster an environment of comparative BI reporting without the baggage of outdated or irrelevant information. This streamlined approach enables businesses to enjoy the benefits of their new system without being encumbered by legacy difficulties. There is little value, for example, in bringing across past transactional data. It is generally preferable to start with an opening trial balance and bring in monthly reports for reporting purposes. Doing it this way makes it possible to achieve comparative business intelligence reporting without the need to run parallel systems. A provider that supplies upload templates will make this straightforward. Post-implementation optimisation and expansion The journey doesn't end with system go-live. A successful implementation is an ongoing process, marked by phased introductions of system capabilities and new modules, constant evaluation, and celebrations of each milestone achieved. This approach not only facilitates a smoother transition but also fosters a deep understanding of the new system, paving the way for future enhancements that are informed by real business benefits. While every organisation is unique, awareness of potential pitfalls and adherence to strategic guidelines can significantly reduce implementation time and complexity. A properly implemented financial management system is indispensable for the success of a growing business.