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