Accounting Software same as the 1960's?

Did you know that some accounting software and ERP solutions have been around since the 1960’s and 1970’s when the first computerised accounting systems were developed! makes you feel old doesn't it.

The History

In the 1980’s along came along the creation of the personal computers and therefore accounting software became more accessible to smaller business, which saw the likes of Peachtree (now Sage 50 North America) released in 1981 and QuickBooks in 1983 which were primarily designed to simply financial tracking and reporting.

ERP systems pretty much had the same journey, created primarily for large manufacturing companies, focussing on materials management and inventory control which of course then expanded to encompass other business functions.

Fast forward to the 1990’s and ERP systems grew to integrate more processes like finance, human resources and supply chain management by the likes of SAP , 甲骨文 and Peoplesoft who became the global prominent players during that period.

The 2000's then arrived, which saw a rapid uptake in accounting software due to the advent of of cloud computing, giving users more flexibility and scale and it is hard to think about companies operating without tools like these at that time. In the early 2000's we all witnessed strong names names like Sage , Pegasus Software , OneAdvanced and Microsoft Dynamics GP take a good strong hold on the market and helping millions of business to function.

Finally, as I reminisce slightly looking in the rear view mirror, Saas arrived with true cloud native solutions, helping some of the smallest to some of the largest companies digitise. Again Sage arrived with their acquisition of Sage Intacct, Inc. , Xero dominated in APAC with their accountant focussed SMB tool and so did Intuit QuickBooks in North America followed shortly by the UK with their sole trader and small business online product. NetSuite , Microsoft Dynamics 365 and AccountsIQ followed suite shortly hitting the UK markets.

All of these solutions are critical to business success and all play a part in ensuring that business are aided in their continued development.

So what is the common denominator across the whole of these platforms?

Majority, if not all, still have similar gaps in their solution offerings that existed throughout that entire period.

• SMB’s are still disconnected from the buying process
• Controls and automation for purchasing and finance are still limited
• Spend management is deemed only a need for direct costs
• Purchasing processes are required only for big business (oddly)
• Accounts Payable centres around digitising an invoice
• Some see their applications are solely for the Finance department

Sourcing, Sustainability, T&E and dare I say it AI, well, if you need any of these, go and find multiple other solutions to bolt on!

Given the level of investment in the fintech area over the years, it is surprising how limited some of these accounting and ERP applications have actually evolved.

Now there is a very valid reason for some. If a solution provider is doing great business without any of these additional features or modules, then why change, “If it isn’t broken, then don’t fix it” as my dad would always say.

Changing audience for Accounting Software authors

What was once a purchasing decision for the Finance Director or CFO when selecting an accounting solution, is becoming more a wider business consideration based on the needs and impact of their day to day roles. Finance teams have always been the gate keeper of information, key data to make informed business decisions, this is rapidly changing with a different outlook being adopted by different generation users.

If I cannot automate that task, then it's not right!

If I cannot access that data now and from any device including mobile, then it isn't for me!

If finance teams are using slow, out of data processes or technology, then it is holding businesses back!

So what is the conclusion of this article?

Add-on solutions are needed to plug the gaps in accounting and ERP solutions. They exist to ensure that the needs of your users are fulfilled, if that be in Finance or any other area of the business. The investment in innovative tools and ground breaking technologies like AI are supercharging businesses of all sizes to achieve what they never could ever dream of, enabling them to achieve the extraordinary!

If your a business user searching for your next accounting solution, see further information here

If your a business user wishing to add functionality to your existing accounting solution, check out more information here

If you just want to know more or get some general information about the evolving technologies for business, then feel free to drop us a line here and one of the team Compleat Software would be happy to help!