Halloween is a time for spooky tales and scary stories. But what about accounting systems gone wrong?
Don’t let a disastrous accounting system ruin your Halloween. Here are eight terrifying tales associated with faulty finance systems, and how to avoid them in your business.
1. The Tale of the Doomed Customer
A business implements a new accounting system but doesn’t properly train its employees on how to use it. As a result, customers are continually overcharged and invoiced for the wrong items. The business is forced to issue refunds and apologies, but the damage is done – customers are leaving in droves.
Don’t let this be you! Make sure you and your employees are properly trained on any new accounting system before using it with customers, suppliers, and other stakeholders
2. The Tale of the Vanishing Inventory
An organisation switched to a new inventory management system but soon realised that inventory was mysteriously disappearing. After an investigation, it was discovered that employees were manually overriding the system and taking inventory for themselves.
Don’t let this be you! Make sure your accounting system is properly locked down and only accessible by authorised personnel.
3. The Tale of the Misclassified Employees
A business implements a new payroll system, but employees are soon being paid the wrong amount – or not at all. The problem is traced back to incorrect employee classification in the system. As a result, the business faces lawsuits and hefty fines.
Don’t let this be you! Make sure your employees are correctly classified in your accounting system, and that they are being paid the right amount.
4. The Tale of the Wasted Money
A company buys a new accounting system, but employees don’t use all the features and still rely heavily on excel, because they feel it’s too complicated and time-consuming to learn. As a result, the company wastes thousands on a system that sits gathering dust.
Don’t let this be you! Make sure you thoroughly research any new accounting system before buying it, and that you have the time and resources to learn how to use it properly.
5. The Tale of the Inaccessible Data
A business’ old accounting system is no longer supported by the software company, so the business is forced to upgrade. However, the new system is not compatible with the business’s existing systems and data.
Don’t let this be you! Make sure your system doesn’t get outdated and keep up to speed with the latest updates and patches to ensure you’re not left unprotected.
6. The Tale of the False Reports
A business implements a new accounting system but quickly realises that the financial reports it generates are inaccurate. The problem is traced back to incorrect data entry and human error. As a result, the business faces serious legal and financial consequences.
Don’t let this be you! Make sure your accounting system is designed to prevent mistakes and omissions, and that the reporting process is automated to reduce human error.
7. The Tale of the Poorly Integrated Systems
A company tries to save money by using multiple, disparate accounting systems instead of one integrated system. However, this quickly leads to problems with data inconsistency and errors. As a result, the company faces significant losses in time and money.
Don’t let this be you! Make sure any accounting system you use is properly integrated with your other business systems, to avoid data inconsistency and errors.
8. The Tale of Hostile Supplier Relationship
A business’ new accounting system is so complicated and time-consuming to use that it quickly falls behind on invoicing suppliers. As a result, the company’s relationships with its suppliers suffer, and it faces late payment fees and other penalties.
Don’t let this be you! Make sure your accounting system is easy to use, so you can avoid falling behind on invoicing and payment.
Conclusion
Don’t let a bad accounting system ruin your Halloween – or your business.
Implementing a trusted accounting system such as SunSystems is the best way to avoid the eight terrifying tales of disastrous accounting systems.
So, this Halloween, make sure your accounting system is up to scratch – or you may end up being the star of your own scary story.
