Common Mistakes to Avoid When Using Sage for the First Time

Sage is a powerful form of accounting and ERP software that businesses use to streamline operations and boost efficiency. It provides robust functionality, including increasing automation and reducing manual labor. Customizable reports and dashboards provide real-time insight into critical operational and financial data.

Getting the most out of your Sage system requires properly configuring it to serve your needs as well as avoiding some common pitfalls that can occur with new or inexperienced users. We’ve compiled a guide of the more common challenges or mistakes users sometimes make in Sage and our advice for how to avoid them.

Top Ten Mistakes in Sage ERP

1. Skipping the Initial Setup – Users may be tempted to dive into Sage without properly configuring the software or testing its functionality. This is a mistake. ERPs cannot be used out of the box and must be customized to fit and improve a company’s existing workflows.

Companies typically work with a Sage implementation partner like CertiPro to customize and install your Sage application. A knowledgeable and skilled implementation partner will work with you to identify your existing and future needs and confiture a system that’s perfectly tailored for you, including training employees and making additional tweaks at needed.

Skipping the initial setup or neglecting to properly input your company details, tax settings, and financial periods can prevent companies from getting the full benefit from their new ERP system.  

2. Neglecting to Set User Permissions – User permissions are a set of rules and authorizations that dictate what specific resources, functions, and information users are able to access on a software network. Sage offers robust user permissions and roles as part of its data security features.

While it may be tempting for admins to simply give everyone the highest permission level instead of determining what every person needs, failing to set appropriate user permissions can pose security risks and lead to unauthorized database changes. It’s important to ensure that each user has the correct level of access based on their role.

3. Only Using Pre-Built Dashboard and Reports – Sage provides a wide variety of customizable reports and dashboards to make it easier for users to analyze and visualize data. The pre-built reports are excellent, and include payroll reports, income statements, balance sheets, customer aging balances, and more.  However, taking advantage of Sage’s full features and drill-down capabilities often requires setting up customized reports and dashboards.

4. Not Performing Regular Backups – Data loss can be catastrophic for any business. It is important to have an automated backup system in place that performs regular data backups to prevent the loss of critical financial and operational data.

It’s easy to create regular automated backups in Sage. Depending on the precise Sage system, these backups can be configured using the Windows Task Scheduler while some applications perform regular backups without the need for manual configuration or scheduling.

5. Not Reconciling Accounts Regularly – Reconciling accounts is an accounting process that involves comparing financial records like a company’s general ledger with external statements such as bank statements, invoices, and credit card bills. The goal is to ensure the accuracy of all transactions.

Sage includes built-in bank reconciliation automation features that streamline the accounts reconciliation process, including automatically importing bank transactions and using AI to automatically match bank transactions with general ledger records. Users can also set custom rules that will auto match recurring transactions. Even with all these automation reconciliation features, it’s important for users to check these reconciliations regularly to ensure the system is still working as it should and that all transactions are reconciled correctly.

6. Misclassifying Transactions – Classifying transactions in Sage involves assigning them to the appropriate account, category, or classification to ensure accurate financial reporting. Proper classification helps businesses correctly track income, expenses, assets, liabilities, and other financial activities.

Sage makes it easy to classify transactions and ensure financial accuracy. However, any system is only as good as the quality of its data. While ERPs like Sage reduce the likelihood of data entry errors, it’s important to verify that transactions are being classified correctly.

7. Underutilizing Automation Features – Sage provides a range of automation features, including automated bank reconciliation, auto-billing, automatic tax calculations, automated currency conversions, and more.

New users who are used to performing these tasks automatically may be slow to take advantage of Sage’s automation features, which save time and reduce errors.

8. Underutilizing Training or Support Options – Sage offers multiple training and support options, as do most Sage implementation partners. CertiPro offers extensive employee training and retraining courses as well as ongoing technical support. Taking advantage of these resources can help new users navigate their Sage system more efficiently.

9. Not Performing Regular Software Updates – Regular software updates are vital for system security and improve performance. Running outdated versions of Sage can leave companies open to security vulnerabilities while they also miss out on all the new features and updates released by Sage.

That’s why it’s important for companies or their Sage implementation partner to ensure that their system is receiving regular software updates. Companies running cloud versions of Sage products can rest easy knowing that their systems will update automatically, meaning that they can rest assured knowing they’re always running the latest version of Sage.

10. Not Working With Their Sage Consultant – A knowledgeable and engaged Sage implementation partner like CertiPro is one of the best resources available to companies using Sage products. An implementation partner should be intimately familiar both with Sage and with the company’s specific needs, meaning they can craft the best possible solution. They are often the first line of defense for support issues and customization.

At CertiPro, we take pride in the ongoing support and expertise we provide for our clients. We have an online ticketing system for support requests and also provide enhancements that extend the functionality of Sage, including our E-Link Sage eCommerce integration and automated cycle counting tool.

Effectively Using Sage ERP

Avoiding the issues identified in this guide will help companies get the most value out of their Sage system. With the right approach and by implementing best practices, Sage is a powerful tool for streamlining processes and improving both financial and operational efficiency.

What We Can Do For You

At CertiPro, we are experts in all things related to Sage, including Sage implementations, employee training, and Sage eCommerce integrations. We are with our clients every step of the way and provide the ongoing support they need to turn their new Sage application into a powerful tool to drive efficiency. Contact us today to see what we can do for your business.