Considering a merger or acquiring another accounting firm? Don’t underestimate technology’s role, since it’s the backbone of the operation. Picture two firms, each married to their own software. Trying to blend these can be as awkward as a square peg in a round hole. So, ensuring these systems play nice together is crucial.
Knowing that in advance and getting your technology streamlined will not only empower your today, but make you ready for any merger or acquisition in your future.
Here’s some technology housekeeping items to consider when merging two companies.
Data Security
When you’re moving your data from one place to another, you must consider security first. It’s a big deal, especially with all the rules and regulations surrounding data protection and cybersecurity. You must make sure both sides are on their A-game with security. Has either org had a data breach before? Time to give that a serious lookover. Your clients are trusting you with their info, so you must safeguard their information.
Client Portals
Many firms have online portals where clients can securely access financial documents and message their accountants? If you’re merging two businesses that both have portals, it’s a big decision how to unify them. It’s not just about merging data; you need to consider keeping them easy to use and secure.
Technology Infrastructure
Of course, the IT infrastructure of both companies is essential. Consider the age and quality of every device, be it workstation, server, or other hardware. Do they seem more like museum pieces or cutting-edge tech?
Also, don’t forget your network health. A robust network is like a smooth highway – it keeps your data moving without a hitch. A poor one is the opposite, slowing down your data flow and feeling like the 405 during rush hour.
Balancing AI and Human Staff
In this world of robots and smart tech, it’s wild to see how accounting firms are using AI. From crunching numbers automatically to predicting financial trends, these tools are changing the game. But let’s not forget about your team. How comfortable are they with new tech? Learning new systems can be tough and might cost a bit in training, but it’s an investment that usually pays for itself in the long run.
Auditing Expenses
Speaking of costs, you’ve got to evaluate your tech spending. This includes everything from software licenses to fixing up hardware and getting IT help. These costs are an investment and will make your firm more productive. However, when two firms merge, you should be able to find ways to cut these costs by sharing resources.
Digital Presence
Your online image is more than just some tech stuff. It’s about your brand. Websites, social media, online reviews – they all shape how people see your firm. When you’re thinking about joining with another firm, take a good look at their digital image and reputation.
Vendor Relationships
Every firm has its go-to tech vendors. It may be software suppliers or IT support. You’ve got to understand these relationships, especially the fine print in contracts.
Business Continuity
Lastly, don’t forget to plan for the unexpected. What are the strategies for business continuity? What if there’s a natural disaster or some other surprise that stops your business in its tracks? Having a backup plan for your data can mean the difference between a little oops and a huge problem. Also remember, it’s not just about “backup.” You can secure your data, but if it takes you weeks to recover it, you are essentially out of business until then. Business Continuity looks at how to maintain functionality in the event of a crisis.
The Bottom Line
In essence, while the world of accounting revolves around numbers, the role of technology in shaping, securing, and streamlining those numbers is undeniable. Whether selling or acquiring, understanding this digital realm is vital to making informed decisions.
Having an IT Provider that is in your court can make this entire process streamlined. That’s where we come in. We make the technology aspect of acquisitions easy by assisting every step of the way!
Got questions? Ready to dive in? Get in touch.