Wouldn't it be great if you could buy a $200-$300 piece of Accounting software and all you had to do was make entries and your Accounting would magically be correct?
Yeah, that would be great!
Unfortunately, the dirty little secret is that Accounting software in and of itself will not necessarily do the Accounting thinking for you. The reality is that Accounting software can
help you make more creative and more complicated mistakes more efficiently.
All Accounting software does is automate certain manual bookeeping processes. For example,
with QuickBooks, you can use items to make journal entries. However, you have to map the items to the correct GL Accounts, otherwise, you will have a first class mess on your hands.
As I mentioned in a earlier post, it is in your best interest to have a basic understanding of Accounting. The benefits of this knowledge are :
1. You can spot when your Financial Statements don't make sense.
2. You will have a much better understanding of how your business is doing.
3. You will have a much more productive relationship with your Accountant, because now you can focus on who are your best customers and what are your most profitable products and services.
Remember that no one is going to care about the success of your business more than you. The more you understand about Accounting and how it applies to your business, the greater your chances of financial success.
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