Legacy systems, aka outdated technology still in use, cause many problems, including increased costs, security risks, and difficulty integrating with new applications. These problems can quickly become costly in a rapidly evolving marketplace like we see today.
You could miss out on key growth opportunities if your business still uses a legacy system. Here are six ways your legacy system costs you and what you can do about it.
High maintenance costs
Maintenance costs for a legacy system can be quite high, especially for on-premise systems. In addition to the costs of keeping the hardware and software up-to-date, support expenses associated with legacy systems can mount. These costs can include training new staff to use the old system and paying for ongoing technical support.
Sage Intacct for Reduced Maintenance: Intacct’s cloud-based accounting software helps businesses save time and money on accounting and financial management. With no hardware requirements, companies no longer worry about ongoing maintenance costs.
Efficiency is key to success in today’s fast-paced, ever-changing business world. A legacy system’s outdated nature can often lead to lost efficiency in everyday business processes.
Specifically, legacy systems create silos within your organization. This can lead to duplicated effort and wasted time as different departments try to work around the system’s limitations.
Legacy systems can reduce efficiency by slowing down processes and making it difficult to make changes within your system. Without the ability to quickly access the data you need can lead to frustration and lost productivity for your employees.
Sage Intacct for Increased Efficiency: Increased efficiency and sharper insight enable you to drive growth and improve productivity. Intacct’s cloud-based accounting software is explicitly designed to help growing businesses automate more processes with new features focused on simplification.
Confined by outdated tech
As your business grows, the burden on your legacy system increases. While your system may have served you well in the past, it may not be able to keep up with the needs of a growing business.
Using legacy systems makes scaling your business a nightmare. If you have goals of expanding, a modern solution demands your attention.
Sage Intacct helps Businesses Grow: Features like multi-entity and multi-location capabilities with automated intercompany transactions are the ideal solution for companies who grow beyond the limits of their small-business software.
Incompatible with new technologies
There can also be opportunity costs associated with legacy systems because older systems may not be able to take advantage of the newest technologies that could improve efficiency or reduce costs for the business. A company still using an outdated accounting system may miss out on opportunities to automate processes or take advantage of cloud-based storage solutions.
You’ll want to take advantage of new technologies as your business grows. Legacy systems hinder your ability to quickly integrate and adopt new tools, most likely resulting in missed opportunities.
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The best way to remain competitive in your specific market is by constantly adapting. The business world changes fast, and companies’ most significant concern is being left in the dust.
Sage Intacct for More Integrations: Operating from the cloud, Intacct can integrate new technologies. You can choose new applications based on functional fit, not integration concerns. By connecting with the systems you have in place today, you’re ready to integrate with any new software you add tomorrow.
Lack of support
In addition to the high costs of maintaining outdated hardware and software, you may also be losing out on potential revenue and efficiency gains. A lack of support from your vendor can leave you stranded when problems arise, forcing you to rely on costly in-house resources or third-party consultants.
To avoid pitfalls, it’s essential to consider other modern solutions. Choosing a provider that has a proven track record of supporting similar systems and who can offer a comprehensive support package will give you peace of mind knowing that help is always available when you need it.
Sage Intacct and e2b have you covered: Get quick answers related to product features and functions within the solution or knowledgebase. You can also engage in the active Intacct peer community. You won’t get stuck when we’re a click away.
Several security risks come with using an outdated legacy system. This is a significant risk not just because the security is obsolete but because the system itself is so ancient that it can’t reach the same level of protection as newer systems. This can leave your company vulnerable to attacks from hackers who may be able to exploit weaknesses in the system.
When you can update old systems, it can be challenging to patch, which means that any security vulnerabilities discovered may not be quickly fixed. This can leave your company at risk for more extended periods.
The software is designed to automate many manual tasks associated with traditional accounting, such as invoicing, bill payment, and financial reporting.
Sage Intacct for More Security: Intacct infrastructure runs out of world-class data centers, constantly monitored to provide full data recovery within 24 hours during a major disaster. With built-in security features, you can prevent outside attacks and ensure that the right people get access.
Sage Intacct fixes the ongoing problems you’re having from running your business on outdated legacy technology. By offering a number of features that help businesses save time and money, including automated invoicing, expense management, and real-time reporting, Intacct can help streamline processes and improve efficiency.
Dive Deeper: How much does it cost to implement Sage Intacct
Taking the time to implement a new system will pay off in the long run, while continuing to use an outdated legacy system will cost you time and money. Talk to one of our Sage Business Automation experts to learn more.
Grow by streamlining financial processes and increasing efficiency. Intacct is designed to scale as you grow making it an ideal solution for companies of all sizes.
How much do legacy systems cost businesses?
There is no one-size-fits-all answer to this question, as the cost of maintaining a legacy system depends on several factors, including the size and complexity of the system, the skills of the staff responsible for maintaining it, and the availability of support from the system’s vendor.
Why is it essential to replace legacy systems with new ERP systems?
The simple answer is that legacy systems can’t adapt to new business needs, especially for larger companies looking to expand.
What are some of the benefits of switching to a new ERP system?
Sage Intacct uses the cloud to store and transfer information between silos in your business. Companies can stay ahead of the curve by improving security, efficiency, and scalability. Researching to find the right software for your business needs is essential.