Will Accountants Push Back If I Use Non-Standard Bookkeeping Software?
I recently stumbled across a discussion about someone using Excel for Bookkeeping. The consensus was clear: avoid clients who don’t use mainstream software like QuickBooks due to the additional hassle involved. This got me thinking about my own situation.
In our business, we utilize an industry-specific point-of-sale (POS) software that includes a comprehensive general ledger. While few might have heard of it, this software is used by a few hundred companies in our niche sector. It streamlines our operations by automatically updating sales, cost of goods sold (COGS), and inventory accounts at the end of each day. It also features an integrated accounts receivable (AR) module that seamlessly works with the POS. When we receive new products, inventory and accounts payable (AP) journal entries are automatically recorded, and vendor invoices appear promptly in the AP system.
Although this POS software requires manual journal entries for payroll, it remains a highly integrated solution. Generating income statements and balance sheets is straightforward. The efficiency it offers by automating most data entries is invaluable compared to the time-consuming process of using standard software like QuickBooks for general Bookkeeping tasks.
Given these advantages, I’m concerned about whether accountants might resist working with us because we don’t use conventional bookkeeping software. The previous Excel discussion left me questioning if using our unique software could potentially make us unattractive clients to accountants. Will our choice of software lead to pushback or create unwelcome challenges for accountants?
One response
Deciding whether to use non-standard Bookkeeping software can indeed lead to pushback from accountants, but there are several factors that you can consider which might help mitigate potential concerns:
Benefits of Your Current System
Integration with POS: Your current software seems to be deeply integrated with your point of sale system, automatically updating sales, cost of goods sold, and inventory accounts. This level of integration can reduce manual entry errors and save a significant amount of time.
Automated Processes: The system updates accounts receivable (AR) and accounts payable (AP) automatically, which can streamline operations and ensure that the ledger is kept up-to-date without manual intervention.
Ease of Financial Reporting: Income statements and balance sheets are easily generated, which is a significant advantage for analyzing your financial health quickly and effortlessly.
Time Efficiency: By reducing data entry work, you save valuable time that could be spent on other business activities. This efficiency can be attractive to any business owner.
Potential Concerns from Accountants
Familiarity and Consistency: Accountants generally prefer using systems they are familiar with, like QuickBooks, because it is widely used, offers extensive documentation, and has a large support community. Switching to a less common system might require additional time for them to understand and operate it efficiently.
Data Importing and Compatibility: Most accountants use standardized software that can easily import and export data. Your specialized system might pose challenges in terms of compatibility, potentially leading to increased efforts when sharing data with accountants or auditors.
Lack of Payroll Support: Even though you can manually enter payroll journal entries, the lack of built-in support might be seen as a disadvantage, possibly leading to errors or inconsistencies that accountants need to rectify.
Security and Compliance: Well-known systems like QuickBooks or Xero are frequently updated to comply with the latest security standards and financial regulations. A lesser-known system may not adhere to these standards as rigorously, which could be a concern for accountants looking to ensure compliance.
Strategies to Mitigate Pushback
Provide Comprehensive Documentation: Offer your accountants detailed documentation and training on how your current system operates. An understanding of its processes might reduce their hesitation.
Demonstrate Efficiency and Benefits: Clearly present the time-saving aspects and automated processes of the system, emphasizing how it reduces manual errors and enhances operational efficiency.