one size does not fit all
DON'T BE FOOLED, ONE SIZE FITS ONLY SOME
It's a fact that most accounting packages are unsuitable for a large number of businesses. They are not unsuitable because they lack certain features that accountants like to see (drill down, prepayments, payroll, depreciation) but because they all suffer from the same flaw. They are flawed at birth; this flaw is simple yet serious: none of them is designed for your business. They are designed for every business, any business, all businesses, but not yours specifically. Quickbooks, Simply Accounting, Peachtree, ACCPAC, etc… are one size fits all general purpose tools. As such, they should be used in general purpose businesses only. Nevertheless, I see these programs used in businesses like Travel Agencies, Contractors, Event Management, Freight Forwarders, Shipping/Transport, Engineering, Property Management, High Tech, job shops, and hundreds of others.
Just on the Sales/Purchase side, these applications can handle a very simplistic and limited sales/purchase model. If the model is outside the Quantity X Price formula (as most of them are) you have to do your calculations in a spreadsheet and input the results in your Quickbooks. Also, their security features are so basic that it's dumbfounding. Features such as prepayments, depreciation etc… won't fix that. These are not "must haves", they are "nice to haves". The "must haves" are a direct reflection of a company's business processes and no off the shelf software can give you that. It is the "must haves" that you don't have that's costing you time, money, and frustration. Having the "nice to haves" won't help much.
A COMMON MISCONCEPTION
The average business owner/manager has been conditioned to believe that accounting is and must be separate from the rest of the business. That's a costly misconception.
* The function of a business is to run business processes and activities to develop and serve a market and generate profits.
* The function of any accounting software is very specific and very limited: to translate the various past activities of a business into quantities and dollars, nothing else, nothing more.
The accounting process is just a chapter and must be an integral part of the book, your business. When you use an accounting software, you inevitably and instantly dissociate the second function from the firm's main function. To bridge the gap you have to run parallel systems; there is no other way. If on the other hand, you use an integrated system, there are no bridges to build because there are no gaps.
It's a fact that most accounting packages are unsuitable for a large number of businesses. They are not unsuitable because they lack certain features that accountants like to see (drill down, prepayments, payroll, depreciation) but because they all suffer from the same flaw. They are flawed at birth; this flaw is simple yet serious: none of them is designed for your business. They are designed for every business, any business, all businesses, but not yours specifically. Quickbooks, Simply Accounting, Peachtree, ACCPAC, etc… are one size fits all general purpose tools. As such, they should be used in general purpose businesses only. Nevertheless, I see these programs used in businesses like Travel Agencies, Contractors, Event Management, Freight Forwarders, Shipping/Transport, Engineering, Property Management, High Tech, job shops, and hundreds of others.
Just on the Sales/Purchase side, these applications can handle a very simplistic and limited sales/purchase model. If the model is outside the Quantity X Price formula (as most of them are) you have to do your calculations in a spreadsheet and input the results in your Quickbooks. Also, their security features are so basic that it's dumbfounding. Features such as prepayments, depreciation etc… won't fix that. These are not "must haves", they are "nice to haves". The "must haves" are a direct reflection of a company's business processes and no off the shelf software can give you that. It is the "must haves" that you don't have that's costing you time, money, and frustration. Having the "nice to haves" won't help much.
A COMMON MISCONCEPTION
The average business owner/manager has been conditioned to believe that accounting is and must be separate from the rest of the business. That's a costly misconception.
* The function of a business is to run business processes and activities to develop and serve a market and generate profits.
* The function of any accounting software is very specific and very limited: to translate the various past activities of a business into quantities and dollars, nothing else, nothing more.
The accounting process is just a chapter and must be an integral part of the book, your business. When you use an accounting software, you inevitably and instantly dissociate the second function from the firm's main function. To bridge the gap you have to run parallel systems; there is no other way. If on the other hand, you use an integrated system, there are no bridges to build because there are no gaps.
The only way a GPAS can be used in a variety of companies is to run parallel systems (multiple spreadsheets, databases) to make up for its shortcomings.
This tells me one sure thing: these packages really fit the company's needs… like your left shoe on your right foot.
This tells me one sure thing: these packages really fit the company's needs… like your left shoe on your right foot.
Accounting and System/Software For Small/Med Size Businesses