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The Cost of Upgrading vs. The Cost of Fixing Problems

Upgrading an accounting system can be a daunting task for some. I often here from clients that they feel as though they have just implemented a system and now there is a new version to upgrade to. Unfortunately, this is sometimes the case. Dynamics, for instance, now does 6 month cycle releases for their new versions. Meaning there will be a GP2015, GP2015 R2 and then GP2016. So what is the point in trying to keep up? Is there really that much value in upgrading?

Here’s the thing, upgrades are a necessary evil in having an ERP. Yes, if you are on QuickBooks you can probably go forever on the version you purchased in 2004 (although I wouldn’t recommend it), but an ERP is very different. This is the system that is running your business. You want it to be up to date and working as efficiently as possible. It’s an added cost, however the cost of fixing things that break because they are out of date is much greater.

I think its funny when you see people who always have to have the latest iPhone and version of iOS but when it comes to their business systems lag behind. Technology runs throughout all aspects of our lives so we need to stay current in all aspects. If you let one system get out of date it will affect others. For example, when employees need a new computer they will most likely get the new Windows 10 operating system. If you are running an accounting system from the 90s chances are it’s not going to be compatible.

I worked with a company who never wanted to upgrade their system, or pay their yearly enhancement to Microsoft. The annual enhancement is a fee you pay to Microsoft so that you continue to receive bug fixes, code updates, payroll updates, etc. Lapsing on this enhancement means that you will have to pay fees when you do decide to upgrade. So the choices were to upgrade, which would have cost around 13k, or to continue doing nothing and let the system break. Can you guess which one they chose? This client ended up having to pay around 17k to Microsoft just so they could upgrade and then over 20k to do some emergency fixes and get the upgrade completed in time so they could continue running their business. It sounds kind of silly, doesn’t it?
I’ve told that story many a time and still we have clients that choose to never upgrade and then panic when they know there system is going to break. A business can absolutely not afford to have their financial system break. The financial cost along with the threat of losing data is a huge risk and a total nightmare when it occurs. If you are working an old system I implore you to look into an upgrade. Yes, there is a cost to it. However, after you upgrade your system will be more secure, you will have new functionality and many other benefits.

MARY CHARUHAS | Junior Business Development/Internal Sales

Mary Charuhas has been with KTL since 2013, starting as a sales intern in the summer of 2013 and moving to Business Development and Internal Sales in the spring of 2014. She is currently pursuing her Associates Degree in Business Management from Frederick Community College and hopes to continue her education at the University of Maryland next spring. Mary also possesses several Microsoft Dynamics and Acumatica Cloud ERP Sales certifications. Mary assists the sales team in finding new and exciting opportunities. She also manages KTL’s existing customers through providing them with ongoing knowledge of the products, assisting them with upgrades and continuing projects, keeping them informed about updates/new releases, events, and training opportunities. Her charisma and passion for providing excellent customer service make her a valuable asset to KTL’s sales department.

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