Outgrowing Your Accounting System? The Best Accounting Solutions for $2-20M Businesses

As your organization grows, so do your accounting needs. Upgrading your accounting system can enhance operational efficiency and financial management for small and medium-sized businesses (SMBs) with annual revenues between $2 million and $20 million. 

This guide provides an overview of the signs that you need a new accounting system, key features to look for, and tips to help you choose the right cloud accounting solution for your organization. 

Signs You’ve Outgrown Your Accounting System 

As your business expands, operations become more complex, and your current accounting system may struggle to keep up with your needs. This is particularly true if you are using desktop software. Modern accounting software is designed to automate the capture and coding of transactions while presenting the data quickly in an actionable way. It may be time to upgrade your accounting software if you’re dealing with:  

• Excessive manual data entry and account reconciliation - Manual processes are time-consuming, prone to errors, and can hinder productivity. If you or your team is spending significant time in the system entering data or putting it in the right category, you are wasting time. Modern cloud-based software can do this automatically and often uses Artificial Intelligence (AI) to speed the process and increase accuracy. 

• Inefficient workflows and slow processes - Inefficient workflows and slow processes can delay critical financial tasks, such as invoicing, expense reporting, and payroll. Management of cash is critical to any business. You want accounting software that can maximize the speed of cash in and intelligently manage the cash out.  

• Lack of timely financial insights - Delayed or inaccurate financial information can impede decision-making. Your accounting system contains a wealth of data about your business. You should be able to use this data anytime to make decisions. It is hard to be successful when your planning is based on an annual tax return or a financial statement that takes weeks or months to produce. 

• Difficulty scaling with business growth - Your current system struggles to handle increased complexity, such as multiple entities, currencies, or complex tax regulations. When you lose visibility of how the company is doing, problems start to amass quickly and dangerously. The last thing you want to do is make a significant investment that expands your business and not be able to track how it is doing. 

• Poor integration with other systems - A fragmented tech stack can cause data silos and inefficiencies. There is great technology available in the market today that hyper focuses on particularly business functions to help your business grow faster. However, manually moving and manipulating the data between these systems can add significant friction, increasing costs and decreasing time to benefit.  

Key Features to Look for in an Accounting Solution 

To address these challenges, your ideal cloud accounting solution should offer several key features:  

• Automation - Automated workflows, bank feeds, and expense tracking can save time and reduce errors. Cloud accounting software is heading in a direction where all accounting data can be gathered through integration, and AI assists in making sure everything is coded to the right place. 

• Scalability - The ability to handle increased complexity and growth as your business expands. Cloud accounting software can easily handle increased transaction volume, particularly because minimal human interaction cleansing of data is required.  More importantly, the software makes it very easy to track, organize, and present accounting information from within the system. It is no longer necessary to export the data to Excel and then spend time and energy manipulating it into information that can support decisions. 

• Integration - Integration with other business tools like CRM, HR, and payroll can streamline operations and improve data accuracy. Data can flow back and forth through these systems with minimal human interaction. 

• Robust reporting - Customizable reports and dashboards can provide valuable insights into your financial performance. The software is designed to be intuitive to use to create more actionable reports than just the typical P&L and Balance Sheet. 

• Mobile access - Access your finances on the go to stay informed and make decisions anywhere. You no longer need to be constrained to going into the office or using some clunky remote desktop solution. Cloud accounting software is purpose-built to allow you to operate your business from any device, including your phone. 

• Strong security - Robust security measures can protect your sensitive financial data, so system security is a very important part of any modern accounting system. There is an incorrect perception that data is more secure if it sits on a server in your office. Cloud accounting software companies spend millions of dollars making sure their solutions are secure and available. This includes maintaining large security teams and the latest security software to constantly monitor the system and react to security threats. These controls are significantly greater than what any single business can afford to maintain. 

Best Accounting Solutions for $2-20M Businesses 

Choosing the right accounting software can help improve operational efficiency, financial transparency, and overall growth as you face challenges such as managing complex financial transactions, maintaining regulatory compliance, and integrating various business processes.  

Below are some of the best accounting solutions tailored to meet the unique needs of small to mid-sized businesses: 

Xero 

Xero is a popular cloud-based accounting software that caters to the needs of small and mid-market businesses. Known for its user-friendly interface and robust feature set, Xero offers: 

• Price: One of the least expensive cloud accounting solutions on the market. 

• Invoicing and Payments: Create and send invoices, accept payments online, and automate payment reminders. 

• Bank Reconciliation: Connect to over 21,000 financial institutions for automatic bank feeds and reconciliation. 

• Project and Time Tracking: Track time and costs for projects and invoice accordingly, which is great for service-based businesses. 

• Integration: Strong integration capabilities with all the leading cloud-based accounting apps. Xero has an App store with a wide variety of 3rd party apps that are built to work with Xero natively.  

• Reporting: Advanced reporting that is intuitive and easy to use. 

• AI Features: Soon to be released Just Ask Xero (JAX) GenAI technology that will allow you to speak to your data, gaining real-time insights about your business from your phone 

• Other Key Features: Fixed asset tracking, inventory management, and multi-currency accounting built into the system 

QuickBooks Online 

QuickBooks Online is a well-established accounting software that offers a range of features to suit the needs of small and medium-sized businesses. Key features include: 

• Custom Invoicing: Create and send professional invoices, estimates, and quotes. 

• Bank Feeds: Connect to your bank for automatic transaction import and reconciliation. 

• Reporting and Insights: Access a variety of financial reports and cash flow forecasting. 

• Mobile App: Manage your business on the go with the QuickBooks mobile app. 

• Third-Party Integrations: Integrate with over 750 third-party apps. 

• Easy-to-use interface: Similar to the legacy QuickBooks Desktop version. 

• AI Features: Intuit Assist, a new generative AI (GenAI)-powered assistant, has been launched. It will provide personalized, intelligent recommendations to help small business customers. 

• Core Accounting Features: Inventory management and multi-currency support.

Sage Intacct

Sage Intacct is a comprehensive accounting solution for mid-market businesses with complex financial needs. It offers: 

• AI-Powered General Ledger: Automate accounting processes and detect anomalies with AI. 

• Multi-Entity Consolidation: Best-in-class multi-entity capabilities, including cross-entity accounting automation and consolidated financials. 

• Advanced Reporting: Generate real-time, multi-dimensional financial reports. 

• Project Accounting: Manage project costs, billing, and time tracking. 

• Revenue Recognition: Comply with revenue recognition standards and automate processes. 

• Core Accounting Features: Fixed asset management, inventory management, multi-currency support. 

NetSuite 

NetSuite is a robust accounting and ERP solution with many features and capabilities that are suited for more mature and complex businesses. It offers: 

• Real-Time Financial Visibility: Access up-to-date financial data and insights with real-time dashboards and reporting. 

• Automated Accounting Processes: The platform has capabilities that can streamline tasks such as invoicing, payments, and account reconciliation. 

• Multi-Currency and Multi-Entity Support: Manage financials across multiple currencies and entities. 

• Integrated Business Management: Seamlessly integrate with other business functions like CRM, inventory, and e-commerce. 

• Advanced Reporting and Analytics: Generate detailed financial reports and leverage analytics for better decision-making. 

• Customizable Modules: Tailor the software to fit your specific business processes and needs. 

Choosing the Right Accounting Solution

Selecting the appropriate accounting solution requires a comprehensive evaluation of your business needs, future growth potential, and detailed cost analysis.  

Start by identifying your business's specific accounting requirements, considering factors such as the volume of transactions, the complexity of financial processes, and any industry-specific needs. This will help narrow the options to those that best align with your operational demands.  

Consider the Cost  

For the most part, cloud accounting solutions are much less expensive than high-end accounting solutions such as SAP or Oracle. However, the costs are not trivial, and a cost analysis should be performed analyzing the total cost of ownership, including subscription fees, implementation costs, and any additional charges for features or upgrades. Be mindful of hidden fees that could impact your budget. Comparing pricing plans across different solutions will help you find the most cost-effective option. 

Evaluate Ease of Use 

The main goal of cloud accounting software is to allow you to spend less time capturing transactional data and provide faster access to actionable insights about your business. To accomplish this, it must be easy for you and your team to understand and operate. One way this is accomplished is by having a very clean, intuitive user interface.  

Assess Customer Support and Training Resources  

Reliable customer support is important for resolving issues quickly and minimizing downtime. Look for providers that offer comprehensive support options, including phone, email, and live chat. Additionally, robust training resources, such as tutorials, webinars, and documentation, can help your team get up to speed with the software.  

Plan for Integration  

Make sure the accounting solution seamlessly integrates with other tools and systems you use, such as CRM, ERP, and payroll software. Integration capabilities can streamline workflows and reduce the need for manual data entry.  

By carefully considering these factors, you can select an accounting solution that meets your current needs and supports your business’s growth and success in the long term. 

Five Steps to Implement a New Accounting System 

Implementing a new accounting system can be a significant undertaking, but it is not as daunting as you may think. Gone are the days when large external consulting teams and developers are needed to configure the software and train employees. Rather, the intuitive nature of cloud accounting software means not a lot of external help is needed. A small team of experienced accountants and technologists can implement the solutions in 1 to 2 months. Also gone are the days of operating in “parallel,” whereby the old and the new systems are used for a couple of months to make sure everything is working correctly.  Cloud accounting software is easily configured so that settings can be adjusted at any time without the need for massive testing efforts.  

While how to implement the various systems discussed above is not the primary topic of this article, there are five key steps to keep in mind for a smooth transition: 

1. GL Configuration - One of the biggest reasons for implementing a new system is to capture accounting data to gain actionable insights. This requires a well-thought-out chart of accounts that works with the software's features and functionality. It is strongly recommended that a knowledgeable accountant assist in this process. 
2. Data migration - Accurately transfer your financial data from your old system to the new one. This is an important step that, if done properly, will set you up for success in the new system. Many software vendors will often offer this service at no charge. However, make sure you enlist the help of a knowledgeable accountant while undertaking it. How the data is brought over and coded can make a big difference on go-live day. 
3. User training - As mentioned previously, cloud accounting software is designed to be intuitive and easy to use, and often, the vendors provide video training as part of the licensing fee. However, this does not mean that your team won’t benefit greatly from some specific training designed for your specific environment. Again, an experienced accountant can help train your team on the new software to maximize adoption and efficiency.
4. Testing and validation - Thoroughly test the system to identify and resolve any issues quickly. As mentioned previously, operating in parallel to test the system's operation is not required. However, this does not mean there might not be problems. Because the system is live, any problems that arise need to be identified and resolved quickly. A thoughtful testing regiment or script will help spot problems quickly.
5. Go-live and post-implementation support - This is crucial for addressing any issues that may arise after the new system is launched. No matter how much training one does, questions always come up after the system is live. Having a knowledgeable accountant to help can greatly reduce the stress on you and your team. 

Ready to Change Your Accounting System?  

Selecting and upgrading your accounting system is a strategic move that can help streamline your financial management and support your organization’s growth. While the latest Cloud accounting software has made this much easier, the process is still not trivial. Having the right support can make a big difference in the success of your project. 

EisnerAmper can help you navigate this process and find the best solution for your needs. Our team is certified in the latest technology and has years of experience using the software to help our clients' businesses succeed. 

Contact us today to schedule a consultation.