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As a small business, should I outsource accounting or use a software?
If you recommend using software, which one?
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7 Answers
How small is small? What do you want the accounting system to do? Quickbooks, Peachtree etc. are good to a point, but you can't do a lot of detail analysis and you are limited in how you can roll up data. Do you need to tie your accouting system into your CRM, payroll, website or other systems. Micosoft makes a lot of good software pcakages that integrate with their CRM products,etc. You may also want to look at a SaaS (Software as a Service) accouting platform. All of these items effect what type of a system you want.
Getting an in house software is much more cost effective. Ive heard of small companies spending 40-50,000 dollars a year on an accountant. There is Quickbooks, but also look at Peachtree, and a solution called MYOB (manage your own business.)
I would just keep it in-house and use Quickbooks. It's pretty easy and cheap to use, and you can keep an eye on your own money.
Depends what you mean by outsource. You don't necessarily need a full time employee to keep your books. Most small companies you a program like Quickbooks and bring in a contractor 1-2 days a week to update the books.
HI,
I recommend to hire and professional accountant , basically and accounting outsourcing firm, BB whitehouse accountant.....very professional and qualified accountant.
Ben,
There are a number of different ways of looking at this. Assuming your business would not support a f/t accountant, I would suggest a modified approach. I agree with some of the others that a simple off the shelf program, similar to Peachtree would be appropriate, and simple to use. But you may want to consider bringing in a consultant to set things up. For example, designing a well thought out COA (chart of accounts) that enhances your business is not for beginners. Typically, such an individual would have to gain an understanding of your operation before designing a COA. It should be concise, organized, and well thought out. Additionally, it should be framed in such a way so as to allow growth of your business, yet maintain it's organizational structure at the same time. One of the main objectives of accounting, as opposed to bookeeping, is to provide meaningful information and decision support. "Off the shelf" pre-set COA's typically do not do this very well.
Additionally, I'm assuming there will be transactions that will not be properly captured through the A/P and A/R subsidiary ledgers. In this case, these transactions would be recorded (or allocated) through your General Ledger. You can struggle on your own, and if not recorded properly, can have serious consequences, including with the IRS. If you go the initial consultant route, you can request this individual setting up standardized templates for your Journal Entries. For example, the payment of property taxes should be amortized over a 12 month period. You can have your consultant show you how to set up 12 recurring journal entries that will automate this process for you.
But ultimately, once you get your Accounting Software/System set up, as a small business owner, it may be best to handle yourself.
Email me if you have any questions.
Robert
All great information but if your sales are in excess of 1M you should have the service in house. We are a MIcrosoft Reseller and have clients utilizing one of several products ranging in price from 2600 to 4K let me know if you need some help. We also offer SAAS. 203-232-5986
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