| Are you self employed or are you considering | | | | Just think how much money I'll save you, and |
| it? Do you handle the bookkeeping by | | | | how easy I’ll make things.”Be |
| yourself? Are you seriously considering | | | | careful about falling for the |
| buying accounting software? Before you tackle | | | | “do-it-yourself” seduction. That |
| the challenges of bookkeeping, ask yourself | | | | well-known package doesn’t tell you |
| the following questions:"What type of | | | | several important things:1. Which version? |
| business do I have?" | | | | Software packages may list version |
| | | | differences on the back of the box, but you |
| "If somebody approached me with a similiar | | | | may not clearly understand what these |
| business as mine, would I be willing to do | | | | differences mean, or more importantly, their |
| their bookkeeping?" | | | | ramifications for your unique business.2. |
| | | | Getting it right? There no internally |
| If the answer is, "No, I'm not willing to do | | | | established system for double checking your |
| their bookkeeping," then ask | | | | entries, so you have no way to be certain you |
| | | | are doing them right. Even if you get the |
| "Why not?"Here's my first bet: you don't | | | | entries mostly right, ask yourself: is mostly |
| want to do bookkeeping for another company, | | | | right good enough for my business? Is mostly |
| even if it is the same type as your | | | | right the most profitable course of action? |
| own.Here's my second bet: the reason you | | | | Is mostly right an acceptable defense in an |
| don't want to do bookkeeping for another | | | | IRS audit?3. Substantial set-up. That box |
| business is because you know you are | | | | does not clearly state that there is |
| inadequately trained for the job. What if you | | | | potentially a substantial amount of |
| made mistakes? How does this sound: incorrect | | | | setting-up that remains after the initial |
| income taxes, incorrect sales taxes, and | | | | set-up "interview," and that this process |
| incorrect employment taxes? Don't forget the | | | | involves unfamiliar terminology that |
| potential for penalties and interest on those | | | | isn’t clearly explained. This is |
| incorrect taxes, and the time involved to | | | | especially true for product-based |
| file amended tax returns. And how about the | | | | companies.4. No tech-support. Most readily |
| pure embarrassment of going through all that? | | | | available packages are packed with terrific |
| You shudder at the thought of it.And yet this | | | | features at an incredible price, but |
| is exactly your position if you are not | | | | something important may be missing: technical |
| trained thoroughly in accounting principles, | | | | support. Be sure to factor this into your |
| yet do your own bookkeeping.Ask this | | | | decision before buying.5. Still need an |
| question: "If I don’t feel comfortable | | | | accountant. The software box does not tell |
| doing bookkeeping for someone else, why am I | | | | you that you still need an accountant. Far |
| doing my own?" How wise would you consider a | | | | too many people, to their business’s |
| business owner who found a plumber (or a | | | | detriment, make the assumption that having |
| lawyer, or a retailer, or whatever you are) | | | | accounting software eliminates or greatly |
| to take care of the books to save some money? | | | | reduces the need for an accountant.Ask |
| How well would that business do? How long | | | | yourself one final question: "Which does my |
| would it last?You've seen it, that popular | | | | business deserve: a plumber (or lawyer, or |
| accounting package in the membership | | | | retailer, or whatever you are) taking care |
| warehouse store. Can you hear it, sitting | | | | of the books, or a competent and caring |
| patiently on the shelf? It whispers, | | | | bookkeeper?" The health and future of your |
| “You need me. You don’t need to | | | | business may depend upon your answer. |
| know anything about accounting to use me. | | | | |