Navigating Accounting with Non-Standard Software: Will Accountants Push Back?
In the world of Bookkeeping, choosing the right software can be crucial not only for efficient management but also for maintaining a good relationship with your accountant. A recent discussion around the use of Excel for Bookkeeping highlighted some strong opinions, many suggesting that accountants prefer taking on clients who use established software like QuickBooks, due to its widespread acceptance and ease of use for Accounting professionals.
Despite this, many small businesses, especially those in niche industries, often find themselves relying on specialized tools. In my case, our industry-specific point of sale (POS) system doubles up as a comprehensive Bookkeeping solution, offering a built-in general ledger. This system may not be widely recognized, with only a few hundred users, but it efficiently handles daily sales, cost of goods sold (COGS), and inventory updates. It also features an integrated accounts receivable (AR) module, simplifying our operations further by automatically posting journal entries for new product receipts and logging vendor invoices into the accounts payable (AP) system.
The main drawback is the lack of integrated payroll features, requiring manual journal entries. However, beyond that, this system provides robust financial reporting with ease, generating income statements and balance sheets quickly. One significant advantage is the reduction in manual data entry effort, as most transactions are automatically recorded in the ledger. Transitioning to a more standard system like QuickBooks would likely result in increased bookkeeping time due to its different processes.
The question remains: will accountants resist collaboration because I’m not using a standard bookkeeping software? The fear is becoming a client accountants might steer clear of, similar to those using Excel-based systems. While there is a possibility of some resistance, the key is communication. Clearly explaining the capabilities of your current system and its efficiency can help bridge the understanding gap. More personalized software solutions, especially if they enhance productivity and offer reliable reporting, can often win over accountants once they see the benefits and reliability of your current setup.
One response
When using non-standard Bookkeeping software, it’s understandable to be concerned about potential pushback from accountants, especially if their previous experiences with non-standard systems have been challenging. However, there are several ways you can alleviate this concern and make the process smoother for your accountant, while still leveraging your industry-specific software. Here are some considerations and practical advice:
Understand the Accountant’s Perspective: Accountants typically prefer using widely-adopted software like QuickBooks because these platforms are familiar, standardized, and provide robust features that meet the needs of most businesses. They often have built-in functionalities for financial statements, tax reporting, and integration with other financial services which facilitate their workflow.
Clear Communication: When introducing your current system to your accountant, emphasize the integration and automation benefits it provides, especially the automatic posting of transactions to the general ledger and the generation of financial statements. Clear communication about how your software streamlines processes can help your accountant see its value.
Documentation and Reporting Compatibility: Ensure your software is capable of exporting data in industry-standard formats (such as CSV, PDF, or Excel). This ability to provide well-documented financial reports and data exports will significantly reduce the workload on your accountant, allowing them to use their own tools for further analysis or tax preparation.
Demonstrate Your System’s Capabilities: Offer your accountant a demonstration of how your Point of Sale (POS) system works. Showing them how intuitive and efficient it is, particularly how it automatically updates essential financial components like sales, inventory, Accounts Receivable (AR), and Accounts Payable (AP), may help alleviate their concerns.
Highlight Efficiency and Accuracy: Emphasize the time you save with data entry and the reduction in human error due to automation. Highlighting these benefits can reposition their view of your system as an asset rather than a hindrance.
Address Shortcomings Proactively: While your system lacks built-in payroll, explain how you compensate for this limitation with manual journal entries, and ensure this process is well-documented and consistent. Consider using a supplementary software for payroll that can integrate with your POS system or provide easy import capabilities.
Offer Collaboration and Support: Be open to collaborating with your accountant to address any specific needs they might have while using your system. Offer to provide additional support or documentation to facilitate their understanding and use of your system.
Consider Hiring a Consultant: If possible, engage