Change in Accounting Systems

One of my favorite books “Construction Contractor’s Survival Guide” mentions a change in accounting systems as one of the 10 reasons contractors fail.

Many times I’ve seen a company move from one accounting system to another and lose control of the very information they intended to control better through the change. Needless to say, this is a frightening possibility and points up the necessity for good planning combined with measured expectations set against an agreed upon timeline.

The Wall Street Journal mentions this in an article on Levi Strauss in the Media & Marketing section of the July 18th edition. “Net sales … fell 8% in the second quarter of this year amid problems related to implementing a new software system designed to boost efficiency.”

If it can happen to Levi Strauss, it can happen anywhere. The point is to be sure you know what you’re trying to accomplish and plan for a reduction in profits during the 8 to 18 months that such a transition can require.


0 Responses to “Change in Accounting Systems”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: