New Software Will Not Fix Accounting Issues

New Accounting Software will NOT FIX Your Accounting Issues.

The time does come when an organization needs to invest in a new accounting software, or even better, an ERP (Enterprise Resource Planning ) system.

However, if you make a decision to invest in a new “super-duper” accounting software as a solution to FIX ACCOUNTING ISSUES, this is not a good decision.

COMPUTERS ARE DUMB: Computers are dumb pieces of hardware. And the accounting software, apps, or programs installed in the computer are never fully-utilized if the human entering data doesn’t know how to use either the computer or the sotware.

TRAIN STAFF on (a) accounting and bookkeeping, (b) written accounting procedures, and (c) the software used to perform accounting procedures. Too many people confuse the issues they’re having with their accounting reports, not realizing that those accounting issues are easily solved by simply training their staff.

NO NEED for HIGH-LEVEL ACCOUNTANTS. Also, you don’t need high-level Accountants in your organization. As I’ve said before, 90% of the transactions posted to your General Ledger are performed through simple “data entry” by virtue of the work Accounting Clerks in Payroll, Accounts Payable, Accounts Receivable, etc. perform through these modules that “feed into” the General Ledger.

ACCOUNTING SOPs: Standard Operating Procedures are most important as these are written procedures that can be prepared with “print screens” so that even a Secretary or Clerical employee can perform accounting procedures that currently performed by your Senior Accountant.

MANUAL ACCOUNTING: Back in the day, we performed accounting work with paper and pencil. I used accounting journals with 6 or more columns, to account for cash, revenues, expenditures, etc. Before the advent of computers, I used a manual “pegboard” accounting system, which required that I “really” know accounting or bookkeeping.

Do you think I could make excuses for why my books didn’t balance under the old manual accounting systems? Nope.

Today I hear too many people say, “I need a faster computer”, or “we need new accounting software”, or some other excuse, when the real problem is that the Accountant DOES NOT KNOW HOW…it’s just that they have not been trained on accounting, procedures, or in how to use the existing accounting software.

In summary, USE EXISTING ACCOUNTING SOFTWARE. Any accounting software will work!

Well, maybe if you want to use DacEasy, Peachtree, or even ForFUND by Mirasoft, you can complain a little, but not really, because any of these “antiquated” accounting software would have provided an excellent set of financial statements, even for government, to receive a “clean” Unmodified audit opinion letter.

Please leave your comments below. I love to hear what you think.

All for now,

John Herrera, CPA
MuniTemps / CitySpeak Blog & Podcast

Click here to watch video on this blog post.

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