# Is your accounting software holding you hostage?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-04
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Revolutionising Finance: The Role of Accounting Software in
Meta Description: Discover why legacy accounting systems could be holding your firm back and how cutting-edge technology can help drive your company forward.
URL: https://financedigest.com/is-your-accounting-software-holding-you-hostagehtml

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_By **Paul Sparkes,**_ _commercial director at_ [_iplicit_](https://iplicit.com/)

_Digital transformation is often at the heart of streamlining operations, saving time and money, boosting growth, and maximising resources – and technology investments have rocketed in recent years to help companies thrive and expand._

_In fact, recent reports have revealed that Britain’s investment in the FinTech industry reached new heights in 2021 – securing £17.7bn worth of deals in the first half of the year alone – and this is because demand is ever-growing for this type of technology._

_But what role does accounting software play in this puzzle, and could legacy systems be holding firms back from truly achieving their goals – adding to poor performance, a lack of productivity, and competitors stealing the edge? Paul Sparkes,_ _commercial director at_ [_iplicit_](https://iplicit.com/) _, shares his thoughts on the topic._

**Accounting [software to fuel business](https://www.financedigest.com/4-kinds-of-software-your-new-business-needs.html "4 Kinds of Software Your New Business Needs") expansion**

For organisational owners, the [world of technology](https://www.financedigest.com/is-wearable-technology-ushering-in-a-brave-new-healthy-world.html "Is wearable technology ushering in a brave new healthy world?") and digital transformation can be a hazy – and overly saturated – one. With so much information out there, it can easily feel quite overwhelming to know what and who to trust.

It’s a double-edged sword, which if handled incorrectly can send a company into a state of flux.

The truth is that investments are needed in order to grow, but [companies not only have to make sure that the commitment](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") is right, but that it’s applied to the areas of the business that really need attention.

For finance professionals, it’s not uncommon to be sold ‘the [next big](https://www.financedigest.com/finance-is-the-next-big-sector-to-be-ubered.html "Finance is the next big sector to be Uber’ed") thing’ to transform their legacy accounting software, but many find that while they’ve been promised the dream, what they’ve purchased is in fact the stuff of nightmares.

Clunky, ageing – and often not even cloud-based – technology that hampers, instead of facilitates, progress. And as a result, this can really hold organisations hostage from moving forwards on their corporate trajectory. Just because it backs up to the cloud, [doesn’t mean](https://www.financedigest.com/making-sure-that-finservs-digital-transformation-doesnt-mean-digital-exclusion.html "Making sure that FinServ’s digital transformation doesn’t mean digital exclusion") that it’s cloud-native; leaving many accounting and finance professionals with a costly and time-consuming process to rectify.

**Flexible [accounting technology to suit ever-changing needs](https://www.financedigest.com/5-countries-you-need-to-have-an-offshore-account-in.html "5 Countries You Need To Have An Offshore Account In")**

If firms implement a ‘mis-sold solution’ – or ‘fake cloud’ as it’s known within the industry – they quickly find that they’re being made to adapt their business and IT to the capabilities of the software, instead of the other [way around](https://www.financedigest.com/5-time-efficient-ways-to-travel-around-the-philippines.html "5 Time-Efficient Ways to Travel Around the Philippines").

In addition, [customers are often locked into a lengthy contract and are unable to adapt their agreement to suit their developing needs](https://www.financedigest.com/why-empathy-needs-to-sit-at-the-heart-of-bbls-and-cbils-customer-service.html "Why empathy needs to sit at the heart of BBLS and CBILS customer service") – which makes it more difficult for them to leave when they realise the software is unable to flex and meet the evolving demands of the enterprise.

This inflexibility is not only frustrating for staff, but it can have damaging results on [revenue growth](https://www.financedigest.com/revenue-growth-of-the-exterior-car-accessories-market-to-be-influenced-by-growing-end-use-adoption.html "Revenue Growth of the Exterior Car Accessories Market to be Influenced by Growing End-use Adoption") and customer retention, too.

In fact, it can often feel like stepping [back in time](https://www.financedigest.com/its-time-for-a-branding-re-set-getting-back-to-basics.html "It’s Time for a Branding re-set – Getting Back to Basics") when working with an ageing, on-premise solution, which doesn’t really make sense in today’s modern world. Technology decision-makers use cloud-native applications, on a daily basis, in their personal lives – from smartphones to tablets to cars – and their understanding of cloud-native [benefits is increasingly](https://www.financedigest.com/benefits-of-increasing-blog-traffic-with-guest-blogging-and-posting-service.html "Benefits of Increasing Blog Traffic With Guest Blogging and Posting Service") intuitive and savvy. It makes life easier and is reliable, and FDs of mid-sized organisations are becoming increasingly aware that this should be mirrored by the [accounting and finance software](https://www.financedigest.com/new-global-relationship-between-reckon-software-and-myfirmsapp-delivers-closer-interaction-between-accountants-and-their-clients.html "NEW GLOBAL RELATIONSHIP BETWEEN RECKON SOFTWARE AND MYFIRMSAPP DELIVERS CLOSER INTERACTION BETWEEN ACCOUNTANTS AND THEIR CLIENTS") that’s in use in their professional environment.

In short, unagile, poor-performing and ageing accounting technology – with an unsustainable volume of manual workflow intervention, a lack of real-time reporting, and [security and speed complexities when accessing remotely](https://www.financedigest.com/combating-the-security-risk-of-remote-working.html "Combating the security risk of remote working ") – quickly leads to an organisation outgrowing the system, which effectively puts a blockade in the way of them advancing forwards. It’s also very costly and time-consuming to upgrade versions and complex to manage.

**The [benefits of cloud](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?") native accounting software**

Effective cloud-based [accounting and finance](https://www.financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gap.html "Utilising digital tools to close the finance and accounting skills gap") systems should offer ‘one version of the truth’. With one centralised place to control budgets, apportion resources, carry out [advanced reporting](https://www.financedigest.com/advanced-real-time-reporting-separates-the-serious-players-from-the-casual-dabblers.html "Advanced real-time reporting separates the serious players from the casual dabblers"), spot trends and more, this not only allows for effortless adaptability to new markets, approaches, and ideas, but it also provides a gateway for scalability.

Cloud native accounting technology not only [supports the geographical flexibility of authorised users being able to access](https://www.financedigest.com/supporting-a-fair-and-resilient-society-by-protecting-access-to-cash.html "Supporting a fair and resilient society by protecting access to cash ") intuitive and accessible dashboards, reports with real-time data, and documents from any location, but it offers seamless integration too.

While many older solutions limit the extent to which a company can enhance and streamline its processes, their modern counterparts act as an ‘enabler’ – [automating mundane administrative processes and freeing up headspace for staff to spend on the strategic side of finance](https://www.financedigest.com/enterprise-automation-is-the-future-of-finance.html "Enterprise automation is the future of finance") management. The result isn’t only savvier and more [efficient processes but increased](https://www.financedigest.com/increase-your-business-efficiency-with-integrated-labels.html "Increase your Business’ Efficiency with Integrated Labels") staff productivity and elimination of overwhelming workloads.

It’s important to note the difference between ‘true’ and ‘fake’ cloud here though, as the latter may often come disguised as the former – and it should be [avoided at all costs](https://www.financedigest.com/half-of-firms-avoid-investing-in-tech-because-of-cost.html "Half of firms avoid investing in tech because of cost").

Sometimes referred to as SoSaaS – ‘Same-old-Software-as-a-Service’ – this sees technology providers take an adapted on-premise [version of the system](https://www.financedigest.com/version-control-systems-market-gain-impetus-due-to-the-growing-demand-over-2017-2026.html "Version Control Systems Market Gain Impetus due to the Growing Demand over 2017 – 2026") and host it on hardware in an off-site location. Essentially, this is a glorified version of the software the business previously had, which doesn’t have access to global updates or digital-first capabilities – making it unsuitable for today’s fast-paced, hybrid working [practices and modern-day accounting](https://www.financedigest.com/5-simple-ways-to-prevent-a-data-breach-from-putting-your-accountancy-practice-out-of-business.html "5 Simple ways to prevent a data breach from putting your accountancy practice out of business") and finance professionals.

![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/319-1736836509357-compressed.jpg)

Ultimately, agile accounting tools are not only more cost-effective for organisations looking to get results, but they can help to garner [improved outcomes and save](https://www.financedigest.com/improve-your-business-while-saving-the-planet-and-your-back-with-easycat.html "Improve your business while saving the planet and your back with EasyCat") a lot of time, money, and resource both now and in the future too.

**Sources:**

[https://www.theguardian.com/business/2021/aug/10/uk-fintech-investment-hits-new-record-after-18bn-buying-spree](https://www.theguardian.com/business/2021/aug/10/uk-fintech-investment-hits-new-record-after-18bn-buying-spree)

**_Author Bio_** **_:_**

_Commercial director for true cloud accounting software business iplicit, Paul has nearly 30 [years of experience](https://www.financedigest.com/2021-the-year-of-buyer-experience.html "2021: The year of buyer experience") in accounting and business software, helping thousands of organisations through specialist, tech-based consultancy._


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