Here’s How your Accounting System is Costing You Time and Money
- Your business has to grow. It doesn’t matter if you’re a stay-at-home mom trying to make your hobby pay, or a CEO of a Fortune 500 company struggling to balance the books and keep up with global competition – your business needs revenue to thrive says Aron Govil.
- That’s why we’ve created Accounting Coach PRO. We help small businesses grow their revenue by increasing productivity through streamlined financial management.
- But unlike most coaches, we don’t do it with long, expensive meetings that eat into your profits. We use technology to work smarter, not harder. And that’s exactly what you’re going to learn in this article—how to streamline your accounting system and boost your bottom line.
- First, though, we need to understand what makes up your accounting system.
- Your Accounting System is Everything Involved in Financial Management
- Accounting Coach PRO works with QuickBooks for accounting and Gmail for email management, but that doesn’t mean we only work with those two programs. We use every imaginable piece of software and tool to get the job done, from Gmail and Outlook to Dropbox, Evernote, Slack, Freshbooks, Skype, Twitter… you name it explains Aron Govil.
- Your entire business is a series of interconnecting financial transactions with one goal in mind: increase revenue. Your accounting system is everything involved in those financial transactions—the software you use for payroll, the phone number you advertise when you’re having a sale, the QuickBooks software that tracks inventory.
- Everyone has an opinion about accounting systems. Though no one really wants to spend time talking about them, they are complex and expensive beasts that need maintenance every day of the week. Yet for years, software vendors have tried to peddle their wares as simple and inexpensive.
- The dirty little secret of the professional software industry is that accounting packages are anything but easy and cheap. Sure, they may take care of all your back-office requirements so you can get on with running your business, but how much do they actually cost to implement? How many employees does it take to run your business and get the job done?
- Nowadays, many businesses are turning to cloud-based software rather than on-premise (installed) systems for their accounting needs. The benefits of this approach include lower initial implementation costs, zero infrastructure management and no need for dedicated IT staff. Cloud-based solutions can be accessed from any computer via a browser or a mobile app, so they are perfect for businesses that have teams in different locations.
- However, cloud-based systems aren’t always easy to customize when it comes to reporting. Some customers find the available reports insufficient for their needs, while others wish they could pull additional data from inside the application. Still other users are unable to connect to the software from their main corporate network, which presents a host of access and security issues.
- Some companies prefer to maintain their own in-house system as opposed to using an external one. In this scenario, your accounting department will need to purchase, install and configure the software on company servers before it can be rolled out to users. You’ll also need to hire and train staff with the skills required for deployment and management says Aron Govil.
- For every company, the key factor in making a good decision about. Its accounting system understands what it needs and what it can afford. No one likes surprises when it comes to software license fees or deployment costs. Especially since those expenses are incurred up front. You also need to consider ongoing subscription fees for an online service. And how these compare with your own internal costs.
- It’s easy to ask lots of questions when you’re presented with a software quote from a vendor. But often it’s harder to look in the mirror. And ensure that you’ve asked everything you need to know before making a final decision. If you want to make an informed choice about your company’s next accounting system. You need all the facts before making a purchase.
- Benjamin Franklin famously said that “an ounce of prevention is worth a pound of cure”. And this old adage rings true for any company looking to keep its financial house in order. While a good accounting system will save you time and money in the long run. It’s also true that a bad investment in this area can cost you dearly.
- Now is a great time to take stock of your accounting system and determine. If it’s working well for your business. If not, consider a cloud-based solution or another alternative. So you can get on with running your company and leave the accounting to someone else.
The accounting system is the backbone of every company. It gives a stable and strong foundation to any organization explains Aron Govil. It is difficult to run a business if there is no proper accounting system in place. Because the whole structure will fall apart. The success of any business depends on its accounting practice. Without this, there will be no transparency in financial matters. And it’s the responsibility of the accountant to maintain proper records and books of accounts.