QuickBooks is Not an Accountant

Accounting is one of those areas often viewed as a “back of the house” function. Many see is as a necessary evil and just another cost. In an attempt to reduce this cost, many companies think all they have to do is use QuickBooks. Think again! Quite simply, QuickBooks is not an accountant.

Motivation

There are two prime motivators for companies to try to get by just by installing QuickBooks. One, as hinted above, they believe they can reduce costs. Another is that they can reduce their dependency on others to provide information needed to manage a business. As part of this, it also means that is one less relationship that has to be nurtured. But, let’s see what the reality is.

Mistakes

In my blog posting 5 Reasons to Get Help With QuickBooks I went into some detail on why you need help installing and using QuickBooks. One of the prime reasons was mistakes. These occur during the design of how you will utilize QuickBooks, during the set-up and installation process, and during on-going usage. Mistakes in any of these stages can mean incorrect information or inadequate information. It pays to have a QuickBooks ProAdvisor or at least someone with extensive knowledge of QuickBooks involved. At the time I am writing this I am a certified QuickBooks ProAdvisor for multiple years, and I can tell you that each situation is different. Even an advisor has to take steps to make sure they consider the correct things, depending on the company and the needs. But, at least advisors know the areas they need to look at to make sure things happen correctly.

Analysis

Someone with both a strong accounting background and QuickBooks knowledge will understand what the numbers in a financial report represent. They know where they come from and the flow of financial information. They also understand the inter-relationship of the various financial reports, can explain what the numbers are telling you, and can make recommendation for improvement.

Skills

The skills and knowledge to plan, implement, and use QuickBooks properly is essential if you are going to get the most out of this software. As you saw under the analysis section, that means much more than just being able to enter some data and print a few reports. I can buy a book written in Greek but I can’t read it. If you are not a financial person, do yourself a favor and get the help you need.

Remember, QuickBooks is not an accountant.

What about you? Are you preparing to use QuickBooks and know you really should get help? Are you already using it and not sure of the information you are getting?

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

Share

Leave a Reply

Enter your email address:

Delivered by FeedBurner