When you use your accounting system to analyze your business, do you trust the numbers? Do you believe the financial statements, the inventory valuation, the receivables aging? If you don’t, why are you even bothering with the whole thing anyway? Whether your accounting system is easy to maintain, or takes a bit of effort; what’s the point if you don’t trust the results?
An accounting system is a tool to help you manage your business. One of the main benefits of a good accounting system is that the information collected and stored helps you manage your business for greater success. You have to be able to rely on it.
These are some of the requirements for a good accounting system:
- It works. It is not prone to errors and malfunction. Errors take time and money to resolve, and yield erroneous results.
- It is integrated so you are not entering the same information two or more times, and are not spending a bunch of time every month reconciling.
- The functionality fits your business. You can run almost your entire business on the system, without incorporating a shadow Excel system to fill the gaps.
- It’s easy to use, so your employees can get their work done efficiently and effectively
- Your employees like it, so they will become more productive and actually use it.
- The system basically presents one version of the truth, so different people in your organization aren’t looking at different numbers, and getting varying results.
I have a lawn mower. I don’t really care if I have one or not. I’m not proud of it, and hide it away in a dark shed when it’s not in use. But what I really like about it, is that it cuts the grass. If it didn’t cut the grass, I’d replace it.
An accounting system is a tool. It has little intrinsic value. If yours is not helping you succeed, get a new one. If you’re looking for a good one, check out the hosted ERP system at myGPcloud.