Have you seen the commercial on television that goes like this – “if you can write a check, you can use QuickBooks?” Well, it’s true, but there’s more you need to know.
There is absolutely no question – QuickBooks is a tremendously popular (and very functional) piece of accounting software. So popular, in fact, there are currently over 3 million QuickBooks users.
However, within this large user community, there are some common myths about QuickBooks that need some review and clarification:
MYTH #1 – “QuickBooks is so easy, I can set it up myself”
REALITY – It’s true that QuickBooks is very user-friendly, but keep in mind that it can only be as good as the data that is put into it. The process of accurately creating a company file and entering the initial setup data is a critical step that often does not get the attention it really deserves. It is common to see a number of mistakes made during the initial set up phase that cause recurring problems for the business.
For example, when creating the chart of accounts, new accounts will be set up as the wrong type of account. If that happens, business results may not be reported correctly in the QuickBooks financial statements. Or, when items are created that will be sold, the wrong accounts are used here as well, potentially causing inaccurate financial results.
Even worse, all of these errors and problems have an even greater cost. At least once a year, the businesses’ accountant has to take time (in many cases, a lot of time) to clarify and fix the problems. As you know with your accountant, time is money, and that can add up to a hefty invoice from them. Finding a knowledgeable QuickBooks advisor to assist in your setup will return dividends time and again to your business. It’s really true – you can “pay now or really pay later”.
MYTH #2 – “My accountant can help me learn QuickBooks”
REALITY – While some accountants do have a good understanding of how QuickBooks works, an even larger number don’t.
In many small businesses, the accountant is the person the business turns to for tax preparation and tax advice. These same accountants are knee-deep in the tax code, trying to keep up with all the changes that come out of Washington each year. They simply don’t have the time (or in many cases the desire) to keep up with the QuickBooks needs of their clients.
It’s often been said that many accountants dislike QuickBooks. In some cases, this is because they don’t know how QuickBooks works, and may not want to share that with their clients. In other cases, some accountants believe that it is too easy to make changes to the facts and figures that have been recorded in QuickBooks. There are several tools within the newer versions of QuickBooks to help make this a non-issue for your business.
If you feel that QuickBooks is a good fit for your business, but your accountant says otherwise, don’t take their answer at face value. Ask them why they hold that opinion. In some cases, QuickBooks may very well not be the ideal solution for the business. However, in other cases, QuickBooks is a very good fit – it’s the accountant that may not be.
MYTH #3 – “I have to upgrade my QuickBooks every year”
REALITY – It is true that QuickBooks releases a new version of their software every year. Naturally, they’d like for you to be impressed enough with the new features and functionality they add to the new version so you’ll go out and purchase it.
However, an upgrade is not required with each release of QuickBooks. Currently, QuickBooks provides technical support (on a per call or annual support contract basis) for the latest three versions of their software. Like many other software manufacturers, QuickBooks retires or “sunsets” their technical support for versions that are older than 3 years.
Realistically, we advise our clients to plan on a QuickBooks upgrade every other year, unless there are some compelling features and benefits to do so sooner. Accounting software is being called upon to do so much more than the debits and credits of yesterday. Because of that, it’s important for your business to keep pace with the demands of your owners, customers and vendors by budgeting for software upgrades on a regular cycle.
Remember, just because QuickBooks is a modestly priced accounting package doesn’t mean it shouldn’t get the proper care and feeding it deserves as an integral part of your business technology.
Scott Gregory, CPA, QuickBooks ProAdvisor, Microsoft Certified Professional is the president of Bond Technology. Bond Tech provides a full suite of QuickBooks and technology consulting services to small businesses. Services range from helping clients save money on their initial or upgrade purchases of QuickBooks to installation and training, as well as computer installation and networking. Contact Scott at SGregory@BondTechLtd.com, or by visiting their web site at http://www.bondtechltd.com/.
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