So you’re struggling with outdated enterprise resource planning (ERP) software? You’re not alone.

Lots of organizations are finding it difficult to avoid the ever-increasing overhead costs, limited functionality, lack of visibility, and other problems associated with on-site and hosted ERP software. That’s why so many organizations are turning to cloud ERP solutions.

When you make the move to the cloud, you can reduce costs, streamline operations, and easily integrate with and other applications. But first, you need to evaluate different cloud solutions and vendor options, as detailed in the 2018 Buyer’s Guide to Accounting and Financial Software, and avoid these five common mistakes of cloud ERP implementations.

Mistake #1: Being unclear about what you need

Which CRM systems do you need to integrate with? Do you need certain security requirements to be met? Talk to sales, accounts payable, and other departments, and create a list of both your requirements and your nice-to-haves.

Mistake #2: Failing to reach out

Not sure which cloud vendor to use? Be sure to go online and research different vendors—that’s always a smart thing to do. But don’t forget to ask your friends and connections too. Social networks like LinkedIn and Twitter can provide a shortcut to identifying vendors that have proven success with people and organizations you know and trust.

Mistake #3: Not knowing what’s under the hood

What are the security standards of the cloud vendors you’re considering? What’s their guaranteed uptime? What will they do if there’s a breach? Only by asking tough questions can you adequately evaluate the vendor’s network operations center and technology infrastructure.

Mistake #4: Exaggerating ROI

Cloud ERP solutions will typically be less expensive than on-premises solutions—but how much less expensive? You don’t want to overpromise, and you shouldn’t trust vendors that do either. Before you shift to the cloud, create thoughtful ROI scenarios and timelines to determine both the TCO and ROI.

Mistake #5: Accepting a so-so SLA

You need, and should get, a comprehensive service-level agreements (SLA) from your cloud vendor. Make sure expectations are clear and your organization is insulated from risk with an ironclad SLA.

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Michaud Accounting Solutions can also help you make the move to a cloud-based finance and accounting solution. We are CPA’s with over 60 years of experience who have the tools, expertise, and experience to manage your financial information using customized accounting solutions—including secure, cloud-based solutions from Sage Intacct.