Introduction
Is using accounting software like coding? At first, absolutely. You’re trying to figure out how to build your chart of accounts, if you can connect your bank feed, how to filter reports, etc. Accounting softwares were built to keep track of your transaction history. However, the software doesn’t do all of the accounting for you, and the price of each plan within an accounting software differs due to the features they offer. Therefore, you should work with a bookkeeper who is certified in the accounting software they use. Let’s get into more detail about this, shall we?
NO, THE SOFTWARE DOESN’T DO IT ALL
Accounting software provides a built in chart of accounts, app integrations, invoicing capabilities, ways to import your transactions, and so much more. However, it doesn’t do it all for you. Yes, you still need someone who has accounting knowledge to do your books. If you understand what is happening behind-the-scenes of each transaction activity within the software, then you can identify any issues that come up. Some common issues I’ve run into with new clients that handled their own books using an accounting software are (1) the reconciliations are unbalanced and (2) they categorize their personal expenses under an Expense account rather than an Equity account. These are perfect examples of how the accounting software does not do all of the accounting for you, and why you should hire a bookkeeper!
KEY FEATURES TO LOOK FOR WHEN USING THE SOFTWARE
The cost of each accounting software is different because they don’t all have the same features. So, how are you supposed to know which software is best for you? My advice is to make a list of tasks that are taking up a great amount of your time as a business owner. Is it creating your own invoices from scratch? Is it using a spreadsheet to keep track of your transactions and reconciliations? These are excellent places to start when choosing an accounting software for your business. But wait. There are about 20+ accounting softwares out there. How can anyone possibly choose the right software for their business?! Continue to the next section for the answer…
USE A BOOKKEEPER WHO IS CERTIFIED IN THE SOFTWARE
“Okay, Kayla. I’ve made the list of tasks that are consuming my time. I’ve looked into some accounting softwares but there are just too many to choose from. Can you help me?” YES! Most bookkeepers, like myself, have looked into those 20+ accounting softwares, made a pros and cons list, and have gotten certified in the one they think is best for their clientele. Working with a bookkeeper that has gotten certified in the accounting software they use can help ease your worries about whether or not you’re using the right software for your business. The bookkeeper should be knowledgeable about all of the plans within that software and decide which one fits your business needs the best. That said, there are good and bad professionals in every line of work. I highly recommend doing your own research about the plans so you’re getting the most bang for your buck or you’re not paying for features you won’t use. Every penny counts in a business owner’s world!
Conclusion
An accounting software does a great job at keeping track of transactions and providing features that make a small business owner’s life easier, but it does not do all of the accounting for you. You still need to have accounting knowledge. A bookkeeper can help with the accounting part of the software and narrow down which software would be the best fit for your company’s needs. Working with a bookkeeper who is certified in an accounting software is a plus, but be sure to educate yourself on the plans that accounting software offers so you’re paying for features you will use instead of ones you won’t.
Thank you for tuning in, and be sure to check out next month’s topic: MBS Yearly Review (An Anniversary Celebration!)
Sincerely,
Kayla Maldonado