Accounting Software Is a Tool - Not a Bookkeeper

As a small business owner, feeling overwhelmed by numbers, accounts, tax rates, AP/AR, income statements, cash flow... blah, blah, blah... is practically a rite of passage. Whether you're running a software development company, a consulting practice, a farm, or a house/pet sitting business, or you simply suffer from arithmophobia (an intense fear or anxiety surrounding numbers and math - which I truly believe some of my clients experience at times), trying to keep your business running while paying business expenses and personal bills can make anyone want to run away and hide.

We've all asked ourselves:

•       Can I really grow this company?

•       Can I afford to hire someone?

•       When will I finally have enough money to pay myself more?

•       Am I actually making money, or does it just feel like I'm constantly losing it?

For many business owners, the elephant in the room gets ignored until it starts taking up the whole room.  Then year-end arrives, Uncle Sam wants answers, and we're sitting with a cold beer surrounded by piles of receipts, bank statements, and a mountain of paperwork wondering how everything got so out of control.

Did I say “we?” I sure did.

I've been there. Feeling behind, inadequate, or convinced you're just not "good with numbers" can make you want to pry your own eye out with a spoon... but I don't recommend that approach.

Over the next several months, my blog series will explore the how and why of bookkeeping and why it matters to your business. We'll cover practical, real-world topics that business owners can understand and, more importantly, put to work - before you reach for and crack open that first beverage of doom.

I used to hate when people asked me, "Why?" Eventually, I realized how valuable that word, that question, those three little letters really are. Don't just tell me to do something because "that's how it's done." Tell me why. Once I understand the reason, I can build a process that's more accurate, efficient, and sustainable. Bookkeeping isn't any different

If the Software Isn’t My Problem, What Is?

One of the most common things I hear is: "My bookkeeping software just doesn't work."

Or, my personal favorite - as a Certified QuickBooks ProAdvisor: "QuickBooks Online never gives me the answers I need. I keep getting errors, and I'm about ready to throw it out and go back to pencil and paper."

To be fair, sometimes the software really does have an issue or glitch. I've certainly had to call for help more than once. But most of the time? Your software is doing exactly what it was designed to do.

The real problem is that no one showed you how to set it up correctly or build the processes around it. The software can only deliver good information when the people, process, and data behind it are working together.

Businesses spend hundreds, or even thousands, of dollars on accounting systems, payroll platforms, expense management software, reporting tools, and every shiny new piece of technology that's supposed to make life easier. The expectation is that everything will suddenly become organized and accurate.

Instead, many owners end up frustrated because:

·      No one helped set the software up correctly.

·      No one explained the workflow.

·      No one taught the fundamentals behind the reports.

Google and AI can answer almost anything, but if you don't understand the basics, it's hard to know what questions to ask, much less which answers to trust. Before long, you're three hours deep in internet rabbit holes and more confused than when you started.

Buying the Tool Isn't the Same as Building the Process

Growing up on a farm taught me that lesson early. You can own the best manure spreader money can buy, but if you don't have a system for getting the manure into the spreader and then out to the right field, you're still standing there with a pile of hot, steamy... well, manure. (Or something a little stronger if HR isn't reading.)

Accounting software works exactly the same way.

I've watched companies invest tens of thousands of dollars in technology while continuing to manage critical information with spreadsheets, email chains, sticky notes (I'm still guilty of those), and the memory of the one employee who's been there since day one.

The software isn't failing. The process is. Your shiny new technology didn't create the problem; it simply exposed the cracks that were already there.

The Bottom Line

Before you blame QuickBooks - or whatever accounting software you're using - take a step back and ask yourself a different question: Do I have a process that supports the software? 

Because software is only as good as the information and habits behind it.

In this series, we'll start building those habits together - one simple step at a time. My goal isn't to turn you into an accountant; it's to help you understand your numbers well enough to make better business decisions, run a healthier business, sleep a little easier, and maybe even stop dreading tax season.

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Author: Doris Salisbury