As I’ve noted before, it’s common for CFOs of companies that are transitioning from being a small to a midsize business (that is, when they grow past about 100 employees) to find that the entry-level accounting package that they have been using no longer fits their needs. This software may be inexpensive to purchase and easy to use but it lacks many of the customization and business process management capabilities that become increasingly important as organizations grow. The transition from such an application is especially difficult when it involves an on-premises system, because the up-front and ongoing costs of implementing and using these can be daunting. Usually, the shortcomings start off as minor annoyances for companies that have between 100 and 500 employees and grow over time, and usually the pain increases with the number of employees and the volume and complexity of the underlying business. Yet because of the cost, finance executives usually don’t want to migrate to a new system until their old software threatens the orderly management of the business or becomes an overwhelming burden on finance operations. For that reason, increasingly we are finding companies choosing to migrate to a cloud-based ERP system sooner in their evolution because it is usually a more affordable and easier transition than using on-premises software.
Topics: Business Performance Management (BPM), close, closing, Cloud Computing, ERP, Financial Performance Management, Financial Performance Management (FPM), FinancialForce.com, Operational Performance Management (OPM), Planning, Reporting, Salesforce.com, Workforce Performance Management (WPM), Office of Finance, Human Capital Management