The Most Important Reasons to Change the ERP or Accounting system

More and more often entrepreneurs decide to change the company’s resource management or accounting system even though significant funds have already been invested in the existing one. This decision is significant for any entrepreneur because it involves a serious investment of money and reflection on business efficiency.

Business leaders have realised that in order to ensure the company’s future growth, it is necessary to invest in systems, the effective use of which will provide an opportunity to be one step ahead of competitors and will not slow down the company’s development.

Here I summarise the main reasons why managers have decided to change the system.

The system does not provide all the required functionality

It is necessary to think about the long-term needs of the company. For instance, if a system would only be needed for accounting, then it would not need to change, because the current system meets the basic needs, but it does not provide warehouse management, personnel management, or an e-commerce solution, which leads to the decision to introduce a new system with maximum functionality for the present and the future.

The system is difficult to maintain and slow to develop

Rapid system adaptation and modernisation are often a challenge for large corporations and corporate employees who are indispensable in maintaining a system. Because the system is sometimes uniquely programmed for a particular company, it becomes more and more challenging to maintain it day-to-day, and you may encounter situations when something is impossible to program, or it takes too long, which, of course, is not acceptable.

There is a problem with getting reports

It is often mentioned that the current system does not provide necessary reports, and it is not easy to analyse data on suppliers, customers, vendors, projects, and objects.

Company Growth as a Reason to Introduce a New System

Quite often, we hear that the company is growing, and business must be provided not only in Latvia, but also in Lithuania, Estonia, Norway, and other countries. It is not possible to ensure compliance with the legislation appropriate to each country with the Latvian accounting system; therefore a decision had to be made favouring the introduction of an international system.

There is no faith in the development of the system and little cooperation with its service provider

Unexpectedly, many entrepreneurs came up with such a statement. It was argued that the licensing policy of the existing system had changed and that a decision had to be taken in the very short term to maintain it, which would cost additional unplanned investment. Entrepreneurs did not accept such a rapid change in licensing policy, so the desire to work with the existing service provider disappeared. We have already helped several companies to get a new system and onboard a new service provider.

Many come with the desire to see all the necessary functionality in the future in one system, but this is not always possible. Sometimes you need to combine several solutions: Dynamics 365 Sales for sales, marketing and customer service; Dynamics 365 Business Central for accounting, warehousing, manufacturing, and personnel management; Microsoft 365 for data storage; and Power BI for data analysis.

When deciding to implement or change a system, always think in the long term so that the system will meet your company’s requirements for the future, that it will be internationally recognised, and that it can be maintained by more than one specialist or company in the country.

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