Running the business · 4 min read · Published
What we usually see when a $20M company outgrows its accounting system
By Chris Greco, Founder and President.
When a $20M company decides it has outgrown its accounting system, the system is rarely the problem. The chart of accounts is. It still describes the company from five years ago, and no software fixes that.
Revenue and cost are not captured at the level the company now manages, by job, location, truck or product. Month-end depends on one person and a stack of adjusting entries. A migration carries every one of those problems into the new system, at a higher price.
Redesign the chart of accounts around how the company is run. Fix the close calendar. Then decide whether the system needs to change. Often it does not.
Where this applies
Chris Greco
Founder and President, CFO Anywhere. CFO for owner-led companies since 2002. Executive MBA, Gies College of Business, University of Illinois.
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