There are some things that we keep putting off because we think they might be too costly and painful. Choosing a new accounting solution falls into that category for many organizations, but have you calculated the cost of not making the change?
We have all heard stories about (or lived through) system changes that didn’t go to plan, but that doesn’t mean we should continue putting off a much-needed change. Like the dentist, if we go on a regular basis, the cost of preventing that root canal is usually less expensive than having a more invasive procedure done.
Rethink the cost of doing business
When it comes to deciding to buy a new finance system, we need to re-think the cost of doing business. We look at the bottom line and what our expenses are upfront or monthly, and then we put any longer-term changes to our obligations on the backburner. What we don’t do often enough is calculate the cost of NOT switching systems. It is a harder calculation, but one that is equally important.
We quickly forget that our time is valuable. We typically ignore the fact that there should be a cost associated to a manual task that could be automated with a new system. For example, think about all the finance reports that you pull, merge, and send to different members of your team.
Even though it might only take 15 minutes every week, let's do a quick costing of this simple task:
• Time it takes to perform the task: 15 mins x 52 weeks = 780 minutes
• Time to train someone else when you are on vacation: 30 mins x 4 weeks = 120 minutes
• Annual time to pull one report: 15 hours (900 minutes)
• Your cost (at $50/hour): $750 per year
This is just a simple task, so when you think about more complex reports, consolidations, exchange rate calculations, and vendor/customer reconciliations, the cost quickly adds up. If you listed every ‘quick’ 15-minute task performed across your organization, how much could it really be costing your business? If every person in a 20-employee firm has just one of these tasks (and the reality would most likely be more), we are talking $15,000 a year!
In addition to cost savings, automating manual tasks also helps free up your team to work on more added-value tasks, keeping them more interested and engaged with your organization.
We challenge you to start the calculation and build that list of 15-minute tasks. That list is important. It doesn’t mean they will all disappear immediately after you set up your new system, but at least you will know what it is costing you so you can prioritize the features or reports that your organization needs.
MICROSOFT DYNAMICS 365 BUSINESS CENTRAL
Microsoft Dynamics 365 Business Central (BC) is Microsoft’s accounting system for small businesses. It’s part of the Dynamics family of products and integrates with all your existing Microsoft applications. It’s a perfect solution for small businesses looking to move to new finance system that will grow with their business. Its integration with Microsoft Power Platform means the potential for automating manual tasks is extensive.
As Business Central experts with 100s of implementations under our belts, we recommend that BC is first setup with just the basics and then clients expand the functionality as business grows, meaning it should be the last accounting system you’ll ever need.
Launchpad for Business Central is a rolling monthly subscription, which has a step-by-step setup backed by an extensive knowledge base that enables users to get up and running with BC at their own pace. We developed Launchpad to open up BC to small businesses who struggle to afford the initial upfront fees that come with traditional BC implementations.
Launchpad is for small businesses looking for a finance system that can grow with them. There are different subscription levels depending on the type and size of your business and how many system users you’ll need. We recommend you start by taking our quiz to find out which level is right for you.
If you'd like to learn more or chat through how Business Central can speed up your processes and automate repetitive tasks, CONTACT THE LAUNCHPAD TEAMGet in touch
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