One of the greatest challenges of any finance system upgrade is the temptation to over-customise. Historically, many organisations have opted for systems tailored to a specific vision, packed to the brim with idiosyncrasies that only make sense in their very particular environment, and often defined by an individual or a small group. While these bespoke solutions seemed appealing at first, they introduced complexities that affected maintainability, training, and legislative adaptability.
Smart organisations recognise the pitfalls of such an approach, and instead emphasise the importance of standardisation. Such a philosophy doesn’t disregard customisation but rather advocates for a foundation based on standard processes. From there, additional functionality can be introduced via the vast App community.
The bedrock of any reliable and lasting system is its foundation. A standardised system provides exactly that. The specific benefits include:
#1 Scalability
With growth comes challenges and opportunities. As your organisation branches out into new avenues, introduces new products or services, or enters new markets, your system needs to keep pace. By having a standardised system, you can ensure that as you grow, your system evolves without sacrificing efficiency. It eliminates the need to reinvent the wheel every time there’s an evolution or expansion, instead offering a consistent framework that can accommodate and adapt to change. The strength of a standardised process is that while it allows for expansion, it ensures that the system’s inherent efficiency isn’t compromised. This translates to smoother transitions, reduced training times for new personnel, and sustained operational excellence.
#2 Ease of Integration
Today’s organisations aren’t just working with one or two software solutions. From CRM tools to data analytics platforms, the modern business tech stack is multifaceted. Navigating this intricate web can be almost impossible if your system is overly customised.
Additions or upgrades to the system should integrate effortlessly. Standardised systems, built on universally accepted principles, are like puzzle pieces ready to fit into the bigger picture. Conversely, systems that have been heavily customised create enormous volumes of work. Every hour spent trying to force compatibility or troubleshoot integration issues is an hour of lost productivity. By having a system that’s geared towards easy integration, you protect the financial and human resources that can be better used elsewhere.
#3 Compliance
Rules and regulations aren’t static, least of all in finance. Regulatory bodies continually revise policies to ensure market fairness, consumer protection, and economic stability. In this dynamic landscape, rigid systems are a liability. Every time a new regulation rolls out, finance departments with heavily customised systems find themselves scrambling to adjust. Modifying these bespoke models can be both expensive and disruptive.
Standardised systems, on the other hand – given their structured yet flexible nature – allow for much quicker and smarter adjustments. They provide a malleable framework that accommodates new requirements without major upheavals, ensuring that the organisation remains compliant without unnecessary expenditure or operational headaches.
By championing standardisation, organisations not only set themselves up for operational efficiencies but also for long-term adaptability and resilience. The world of finance is dynamic, and having a system that can pivot and adapt while maintaining its core strengths is vital for sustained success.
