Changing accounting systems is a big project, so before you commit, you need to make sure it’s a success by asking the right questions.
Changing accounting systems is a big project, so before you commit, you need to make sure it’s a success by asking the right questions.
Changing accounting systems is a big project, so before you commit, you need to make sure it’s a success by asking the right questions.
These 7 considerations are a great place to start…
Cost is a vital consideration when switching accounting software. You need to be sure that your new system will provide a good return on investment and that it will be better value for money than your current system.
The ideal accounting system is flexible enough to change with your needs and grow with your business.
It would be a great shame (and waste of effort) to select a solution that you then outgrow, only to find that your chosen system is limited in terms of capacity or that you have to migrate or upgrade to a higher/later version.
When thinking about the future, you need to consider new business opportunities, possible additional sites or locations as well as new reports and new integrations with other systems that you don’t currently use.
If you’re changing accounting systems, consider the scalability of your proposed new software first.
For your new accounting software to be a success, it has to meet the needs of your users. It’s important to review your own business processes so that you have a good understanding of your requirements.
Accounting software integration is increasingly important in today’s accounting systems. When your finance systems all work together, you can plug into any system and get things done more efficiently.
When changing accounting systems, choose your timing wisely to minimise disruption to your business. Here are some considerations:
Changing your accounting software mid-year can bring complications. The main issue being that you’ll be left with some months' information being logged into one software and the remaining months in another.
Whilst this can be challenging, it’s not impossible and shouldn’t stop you considering changing softwares halfway through the year. There will be the added responsibility of adding both of the accounting reports together at the end of the year as well as ensuring there’s no overlaps or inconsistencies in your data.
It’s also recommended to manually reproduce existing data into the new software, especially if you’re only a few months into the year. This means you’ll be able to keep all information securely in one accounting system.
Accounting systems need to be reliable and security is key. You need to be able to trust that your data is safe, and understand what would happen if the system went down.
It’s no good having a fantastic software if you’re not supported during your accounting system implementation and beyond. Therefore, during your selection process:
Like most significant financial decisions, changing your accounting system doesn’t always run smoothly. There are a few common issues that can arise during the implementation of a new software to be aware of.
All organisations require reliable records and data about their finances, so that they can manage them properly. Modern cloud-based digital financial management systems provide an efficient and effective way of carrying out these activities. Learn the key features of a financial management system.
A financial management system is used to record, track and manage an organisation’s financial data. This includes information on transactions, cash flow, tax, capital, income and expenses, as well as assets and liabilities.
Cloud-based financial management systems bring structure, automation and accuracy to finance operations—freeing up finance teams to focus on strategic work and giving business leaders the insights they need to make more informed decisions.
Every organisation that handles money - from SMEs and charities to large-scale corporates - needs a system to manage its financial operations. Without one, you risk inefficiencies, compliance issues and lack of visibility over performance.
Modern financial management systems do much more than basic bookkeeping. They pull in data from across the business to provide a clearer picture of performance, cash flow and risk. And with automation and real-time reporting built in, cloud-based systems have become essential for any business looking to scale with confidence.
An effective financial management system helps finance teams gain control over the numbers and reduce the risk of error. This is especially important for growing businesses dealing with higher volumes of transactions or more complex, multi-entity structures.
Key challenges financial management systems address include:
With the right solution in place, finance leaders can be confident they have a single source of truth for all financial data—helping them make better decisions, faster.
An effective financial management system supports both day-to-day accounting and long-term financial planning. Key features include:
Automation:
Cloud-based systems automatically collect, process and reconcile financial data from across the organisation, providing real-time access to accurate numbers.
Compliance:
Most leading systems include built-in compliance tools, such as tax and VAT rules, including support for Making Tax Digital (MTD) and IFRS reporting requirements.
Smart reporting:
Intelligent dashboards and analytics allow users to generate reports quickly and drill into performance trends. Customisable reporting gives finance leaders the insights they need to steer the business forward.
Integrated system:
The best platforms integrate with bank feeds and other core business tools such as payroll, expenses, CRM, and project management software. This ensures all your financial data is connected and accessible in one place.
A modern financial management system can transform how finance teams operate. Benefits include:
Better decision making:
With access to accurate, real-time data and custom reporting, leadership teams can make more informed, strategic decisions.
A single consolidated system:
Instead of managing multiple disconnected spreadsheets or software tools, finance teams can consolidate everything into one reliable platform.
Time-saving and efficiency:
Automation reduces manual tasks, speeds up reconciliation and month-end close, and improves productivity across the finance function.
Legal compliance:
Built-in compliance tools help ensure reporting is accurate and aligned with tax laws and financial regulations, reducing audit risk.
Detailed insights and analysis:
From cash flow to forecasting, modern cloud-based systems deliver deeper financial analysis, supporting better planning and scenario modelling.
Customisation:
Flexible systems can be tailored to suit specific business needs—whether that’s through custom dashboards, integration with other tools, or role-based access for different users.
As technology continues to evolve, financial management systems are becoming smarter, faster and more predictive.
Artificial intelligence (AI) and machine learning are already being used to improve forecasting, detect anomalies, and automate routine tasks. These tools will play an increasingly important role in financial decision-making.
We’re also likely to see greater integration with blockchain and digital currencies, as well as enhanced tools for managing international banking, regulatory compliance, and cross-border transactions.
The future of financial management is about more than just keeping records—it’s about delivering real-time insights that help finance teams shape strategy, manage risk and drive growth.
A good system should handle core accounting functions—like invoicing, reconciliations and reporting—with ease. But the best solutions go further: they integrate with your wider tech stack, support multi-entity operations, and offer intelligent automation and forecasting capabilities.
Cloud-based systems offer greater flexibility, with secure access from any device and easy integration with other business apps. Look for solutions that can scale with your business and be tailored to your sector’s specific needs.
Financial management systems are designed to:
Cloud systems are more flexible, secure and scalable than desktop software. They allow users to log in from anywhere, on any device, making remote work and real-time collaboration much easier.
With built-in automation and integration, cloud-based systems reduce manual work and offer greater accuracy. And because data is stored securely in the cloud, there's less risk of data loss or downtime compared to local desktop-based systems.
When a company trades in goods or services overseas, or makes international inter-company transactions, it needs to minimise or mitigate the associated financial exchange risks.
When a company trades in goods or services overseas, or makes international inter-company transactions, it needs to minimise or mitigate the associated foreign exchange risks. It used to be the domain of large multinationals, but the increasingly global nature of business means FX exposure is now a daily concern for many mid-market companies.
In this blog we outline:
Companies incur foreign exchange risk when they conduct financial transactions in a currency other than their base currency. The risk lies in the fact that exchange rates can move between the time a transaction is agreed and when it’s settled—potentially reducing profitability. This is also referred to as FX risk, exchange rate risk, or currency risk, and the value exposed to this risk is called your FX exposure.
There are broadly three types of FX risk exposure:
In the complex world of international trade, FX exposure is shaped by a mix of internal and external factors:
Internal risk factors
External risk factors
Lack of financial visibility, particularly cashflow and liquidity
Currency market volatility
Inaccurate or siloed forecasting
Fluctuating interest rates
Fragmented or manual data processes (e.g. Excel)
Supply chain disruptions, global instability
Many of these external factors—such as global conflict or economic policy shifts—are hard to predict and control. Yet, finance teams that achieve visibility over their cashflows and exposures are better positioned to create robust FX risk policies. Many also choose to work with an FX provider to reduce risk, streamline admin and access better rates.
Foreign Exchange
The spot rate is the live exchange rate at which one currency is traded for another. It reflects the current market price and is typically what’s recorded in your P&L.
When businesses transact in foreign currencies—say, receiving USD into a EUR account—banks often apply the default spot rate, which is rarely favourable. To avoid this, most companies take a more strategic approach known as ‘self-hedging’. This might mean:
Businesses are typically exposed to FX risk when they:
In the first two scenarios, you’re paying at the current spot rate. The third scenario—transferring profits or repaying loans between group entities—is more complex and often where working with an FX provider becomes essential. It can help you lock in better rates and reduce volatility exposure.
FX fees are a significant area for potential savings. Banks typically charge between 2–5% (200–500 basis points) per transaction. However, by using an FX provider—either directly or integrated into your finance system—you can often reduce this to around 0.5% (50 basis points), leading to considerable cost efficiencies at scale.
Hedging is a common way to reduce exposure to FX risk. It functions much like insurance—providing cost certainty by locking in a future exchange rate.
Let’s say a foreign subsidiary expects to earn $1 million in profit, and the group’s reporting currency is GBP. If that profit is going to be repatriated, it may make sense to hedge the exposure. You could, for example, use a forward contract or an FX option to lock in an exchange rate that protects the business against a drop in USD value. The same logic applies to intercompany loans or investments—hedging helps you manage future FX movements.
Having access to accurate, real-time data is fundamental. It enables you to identify and measure FX exposures and make informed decisions around spot transactions, forward contracts and hedging strategies. Even relatively modest FX volumes—say, £500,000 annually—can carry an unhedged cost of £15,000 or more.
FX options are derivative instruments that give the holder the right, but not the obligation, to exchange one currency for another at a pre-agreed rate on a future date. They’re a flexible tool for hedging, and come in two main types:
Mid-market finance team
Finance teams operating in a multi-currency environment typically fall into one of two categories:
In either case, they face a host of day-to-day accounting challenges, including:
Budgeting
You need a reliable and up-to-date table of exchange rates to:
Automatic data capture and reporting
It’s essential to capture revenue and expenditure at the correct rate, and have the ability to report in both local subsidiary currencies and the group’s base currency—often using a pre-determined average rate.
Month-end revaluations
You must be able to revalue all FX-related balance sheet items using an accurate month-end exchange rate.
In an environment shaped by persistently high interest rates, inflationary pressures and global uncertainty, one thing remains constant: CFOs must actively manage FX risk and understand how it affects the balance sheet.
Yet surprisingly, many mid-sized businesses still lag behind. In fact, as far back as 2019, a survey by American Express and YouGov found that 43% of UK SMEs weren’t managing their FX risk at all. While awareness has grown in recent years, it remains an area of vulnerability for many finance teams.
Here are three key ways to strengthen your FX risk management strategy:
If you’re trading in multiple currencies, you need a Financial Management System that includes built-in treasury management functionality. Trying to manage multi-currency processes in spreadsheets is not only time-consuming—it’s also highly prone to error. You risk poor visibility, inaccurate reporting and missed opportunities to hedge effectively.
Clear and real-time data is the foundation of any effective FX strategy. You’ll need access to consolidated and up-to-date exchange rate data, particularly if you’re using financial instruments like hedging contracts. It’s vital to integrate data across all your core finance and operational systems so that exposures can be identified early and addressed appropriately.
Partnering with a dedicated FX provider can help streamline international payments and reduce costs. For example, AccountsIQ integrates directly with TransferMate, enabling businesses to access competitive FX rates and process cross-border payments seamlessly from within the platform. This reduces manual handling, improves speed of settlement and lowers transaction fees.
Managing FX risk effectively is critical for businesses with international operations. As AccountsIQ’s CEO, Darren Cran, puts it:
“We’re living in what’s often referred to as VUCA* times. Multiple disruptive events are happening simultaneously—whether geopolitical conflict, economic shifts or global supply chain disruptions. That inevitably brings greater currency volatility.
It’s not just major currencies under pressure—secondary currencies can be even more unpredictable. In this environment, having a solid treasury management strategy is essential. That means getting the best spot rates and ensuring you’ve got a clear hedging plan in place.”
*Volatility, Uncertainty, Complexity and Ambiguity
While we don’t offer advice on specific hedging strategies, our FX functionality is built to help finance teams reduce risk and improve visibility.
Many of our multi-entity, international customers—such as Integra Technical Services—use AccountsIQ to manage complex intercompany and FX accounting processes with ease.
“It’s easy to map through and check you’re using the right FX,”
says Sue Evans, Financial Controller at Integra Technical Services.
“Previously, it was complicated, and we spent a lot of time working out variances. With AccountsIQ, you just know it aligns. In fact, we only need to do our FX updates monthly rather than daily. It’s so much better.”
