Navigating the Accounting World with Non-Standard Bookkeeping Software
In today’s complex financial landscape, many small businesses face the dilemma of choosing the right Accounting Software. A common concern is whether using non-standard Bookkeeping software might lead to resistance from accountants. Here’s a deeper look into this topic and some insights on managing this potential challenge.
The Unique Case of Industry-Specific Software
Recently, I stumbled upon a discussion about the use of Excel for Bookkeeping, where many advised against taking on such clients due to the added complexity when not using systems like QuickBooks. It made me reflect on our own situation, as we rely on a tailored point-of-sale software. This unique software, designed for our niche industry, might be unknown to many, boasting only a few hundred users. Despite its obscurity, it offers robust Accounting features, including a full general ledger.
The software efficiently updates sales, cost of goods sold, and inventory accounts during daily cash-outs. It also includes an Accounts Receivable (AR) module seamlessly integrated with the POS system. When we receive new inventory, the software automatically makes journal entries for inventory and Accounts Payable (AP), and vendor invoices appear promptly in the AP.
The Missing Piece: Payroll Support
While the system is quite comprehensive, it lacks built-in payroll functionality, necessitating manual journal entries. Still, generating income statements and balance sheets is straightforward. The real advantage lies in its automation, significantly reducing data entry time compared to standard solutions like QuickBooks.
Will Accountants Object?
The critical question remains: Will accountants push back against our use of non-standard bookkeeping software? The discomfort surrounding the use of Excel by the person in the forum makes me wonder if I might be seen as an undesirable client as well.
Accountants typically prefer familiar systems due to ease of use, streamlined reporting, and standardization across clients. However, a well-documented and efficient system, even if non-standard, can still gain their approval. The key lies in transparency and ensuring the system’s output aligns with accounting standards.
Conclusion
Ultimately, while using non-traditional software might initially raise some eyebrows, it isn’t a deal-breaker. Clearly communicating its capabilities and the advantages it offers can go a long way in gaining accountants’ trust. By highlighting its effectiveness in automating data entry and generating essential financial reports, you can demonstrate its value. After all, the goal is accuracy and efficiency, whatever path you choose to achieve it.
One response
Using non-standard Bookkeeping software can indeed raise concerns among accountants, primarily due to issues surrounding data accuracy, compatibility, standardization, and efficiency. However, whether or not you will experience pushback depends on several factors, including the extent to which your POS software can streamline Accounting activities and how well it aligns with professional Accounting standards.
Communication and Collaboration
The first step in addressing potential pushback is open communication. When considering bringing an accountant on board, proactively discuss your current Bookkeeping setup. Clearly explain the functionalities of your specialized software, noting how it ensures accuracy and completeness in tracking financial activities. Engage with prospective accountants by offering them a demo of your software, highlighting its automated features that reduce manual data entry errors and enhance efficiency. This proactive approach shows transparency and your commitment to maintaining your financial records effectively.
Standardization and Compatibility
Accountants often prefer standard software like QuickBooks because its widespread use ensures that data and reporting align with generally accepted Accounting practices (GAAP). Consider evaluating your software against these standards. If your software adheres to GAAP and other compliance requirements, make sure this is demonstrated convincingly. Additionally, the ability to export data into formats that integrate with other accounting systems is crucial. Check if your POS system can export data to widely-used formats like CSV or Excel that can be synced easily with a standard software if needed. This flexibility might ease accountants’ concerns about standardization.
Efficiency and Accuracy Benefits
Share specific examples of how your current system enhances efficiency and accuracy compared to a manual or semi-automated process with standard software. Illustrate scenarios where the point of sale (POS) system captures real-time data for sales, inventory, and accounts payable, reducing the margin for human error and providing immediate financial insights. Highlighting the automatic journal entries and integrated accounts receivable (AR) module can be compelling evidence of the system’s efficacy.
Bridge the Payroll Gap
Addressing the lack of built-in payroll support could be essential to minimize pushback. You might consider using third-party payroll services that can be integrated with your POS system or exploring payroll software solutions that ensure seamless data transfer into your accounting system. Demonstrating that simple and effective solutions are in place for payroll can alleviate potential concerns.
Create a Contingency Plan
Finally, establish a contingency plan for transitioning to a standard software system should the need ever arise. This might involve keeping an up-to-date backup of all financial data in compatible formats. Such a plan demonstrates readiness to adapt if business needs or