Top 6 Common Mistakes Companies Make When Upgrading Their Accounting Software

HOST: Welcome to Digital Journeys, the podcast from Cherry Bekaert that explores how technology is transforming business optimization. Each episode we unpack the latest trends, strategies, and innovations that are driving efficiency and growth in today's fast-paced digital landscape.

HOST: Join us as we navigate the path to smarter, more agile business practices.

TERRY HERDEN: Hello, everyone. My name is Terry Herden, and I'm the Product Marketing Manager at Cherry Bekaert. Today I am joined by Nathan Currie and John Bartz, who are going to talk about the six common mistakes made when upgrading to a new accounting software.

TERRY HERDEN: Upgrading your accounting software is a big step toward efficiency, accuracy, and better financial management. But if you're not careful, what should be a smooth transition can quickly become a costly headache.

TERRY HERDEN: Nathan, would you mind introducing yourself?

NATHAN CURRIE: Hi, everyone. Nathan Currie here. I'm a Sales and Marketing Director for the Sage ERP practice at Cherry Bekaert and happy to be here. I've been in technology for more than 30 years and selling ERP systems for the last eight. John?

JOHN BARTZ: Hello, everyone. I am the Sage Intacct Growth Leader at Cherry Bekaert. I've been here three and a half years and have a long history of implementation on both sides, as a practitioner and as a consultant. I'm looking forward to the conversation today.

TERRY HERDEN: I'm excited to have both of you here. You’ve seen the mistakes and how to fix them. Let's start with the first common mistake: not defining clear goals. What do you mean by that?

NATHAN CURRIE: It's easy for folks to get swept up. No one wakes up planning to buy ERP software; typically issues build up over time until things become cumbersome. The common tack is to start looking at features and what's latest and greatest.

NATHAN CURRIE: Instead, focus internally and clearly define where you have issues, what's costing the most time, and which processes in the software are costing you money. Evaluate where you really are before chasing features. John?

JOHN BARTZ: To further that, ensure the ERP solution supports your business goals. Understand your objectives so the project isn't rudderless. Determine how you will measure success, what your KPIs will be, and whether you met the financial and business goals you set out to achieve.

TERRY HERDEN: A company may have a clear business plan, but some people get overwhelmed by features when choosing software. Nathan, how would you help them choose the right software?

NATHAN CURRIE: First and foremost, seek out a professional. Companies often think their setup and processes are unique, but they're frequently similar to others. A consultant who has done this work can help determine the right path.

NATHAN CURRIE: There are many software types and approaches. You might choose a best-of-breed approach with core financials at the center plus third-party add-ons, or a solution that tries to be all things for an industry. A professional can help navigate those options.

TERRY HERDEN: John, anything to add?

JOHN BARTZ: I agree with Nathan. Avoid excessive customization where value diminishes. If you don't seek a professional, you may miss best practices and end up modifying the software into a more expensive, less valuable solution.

NATHAN CURRIE: I've seen companies try to build their own solution, hiring developers to fill gaps. In most cases someone has already solved the problem. It's usually cheaper to buy than to build, especially for ERP.

TERRY HERDEN: The second common mistake is skipping user input. Talk about that, Nathan.

NATHAN CURRIE: User buy-in is critical. If you lack it, goals will be misaligned and users will have negative feelings about the project. You must capture the nuances of each process and consider each person's role and workflow—AP, AR, purchasing, inventory management, sales, marketing. These users ultimately use the system and should have input in the selection process.

JOHN BARTZ: Consider project complexity and scope. A three-person accounting department has different needs than a large implementation spanning divisions and stakeholders. Get everyone's opinion, but leadership must define business direction. Users should not set strategy; they should inform how the ERP supports that strategy to obtain acceptance.

JOHN BARTZ: Acceptance is the biggest issue. Training is not the same as change management. You must plan for both.

TERRY HERDEN: The third common mistake is ignoring data migration challenges.

JOHN BARTZ: Garbage in, garbage out. Migration requires translating or converting data into the new system. You may restructure the chart of accounts and need to translate architectures. Use the migration to cleanse your data—there is no better time.

JOHN BARTZ: If you're integrating multiple ERP systems into one due to acquisitions or multiple business units, don't underestimate the effort required to clean up that data.

NATHAN CURRIE: John nailed it. These projects are a great time to analyze data and processes. Data migration can be expensive or reasonable, depending on how much data you bring in.

NATHAN CURRIE: We typically recommend bringing in no more than the past year of transactional data to true everything up. Some bring their whole history; it depends on access to the old system and archival needs. Understand migration costs, ensure data is clean, and analyze the chart of accounts structure.

TERRY HERDEN: Number four is underestimating training needs. John, talk about training.

JOHN BARTZ: Training and change management are distinct. Change management is how well the organization adapts to the new software. Transitioning to new software should improve automation and business processes, but user acceptance depends on training and explaining why changes are happening.

JOHN BARTZ: If a user currently performs ten steps and you automate that down to four, you must explain why and how it impacts them. Otherwise they may think the system doesn't work. Address concerns like job security and explain what's in it for them.

TERRY HERDEN: Nathan, anything to add?

NATHAN CURRIE: The "why" is crucial. Changing someone's day-to-day process is significant. Also understand what training options your reseller or partner offers. Is it virtual or on-premise? Is virtual training video-based or classroom-style? How long do users have access to training?

NATHAN CURRIE: During evaluation, get a flavor of the training format. Request samples and go through parts of the training to understand how it will work for your organization.

JOHN BARTZ: Training is not one and done. Plan for onboarding new employees and turnover. Many processes use a train-the-trainer model, where providers train specific people to be subject matter experts who then train others.

JOHN BARTZ: Newer systems often include built-in training programs, either video or well-written documentation. Encourage users to learn how to use these systems to answer their own questions; self-sufficiency leads to better adoption.

NATHAN CURRIE: One tip is to document each step users take during training and create a user guide or "user bible." If you have unique business processes, add organizational notes to the training provided by the reseller or publisher.

TERRY HERDEN: The fifth mistake is overlooking integration with other systems. Nathan, what do you mean by that?

NATHAN CURRIE: Legacy ERP systems were often installed on a server with separate add-on software for operations or CRM. Users would switch between accounting software and other systems.

NATHAN CURRIE: Modern true SaaS solutions are browser-based, and integrations look different. Evaluate whether a solution is true SaaS or a client-server model that requires hosted installations and separate software. That determines the third-party tools you might need.

NATHAN CURRIE: Don't assume you must continue using Excel or manual ETL processes. Modern platforms are designed to work together. Keep your eyes open to third-party solutions that integrate.

JOHN BARTZ: Automation is key. Providers have built solutions to replace manual activities, but not all systems talk to each other. True SaaS solutions with open APIs and prebuilt connectors provide workflow and automation between systems, dramatically increasing productivity.

JOHN BARTZ: Look for true SaaS, open APIs, and prebuilt connectors to gain efficiency through automation and connectivity.

TERRY HERDEN: Number six, choosing price over functionality is a big mistake. Nathan, talk about that.

NATHAN CURRIE: It's natural to seek the best deal, but choosing the least expensive software can cost more long term through lost time and manual processes. You can quantify how long tasks take in an old system versus a new system.

NATHAN CURRIE: Buying software that isn't auditable or designed to scale can be dangerous. Plan for growth and don't shop on price alone. ERP is not a commodity; it's an investment in your infrastructure.

TERRY HERDEN: Sometimes it may be a bargain, but if it's too good to be true, it often is.

TERRY HERDEN: Thank you, Nathan and John. I appreciate your time today.

NATHAN CURRIE: I certainly did. I look forward to doing another podcast with you. Thanks a bunch, Terry. Thanks, everyone.