Prefabricated Accounting or In-Depth Custom Setups

Can out-of-the-box products handle growing business accounting demands?

Anyone can set up a basic accounting system. Many software solutions come with templates and recommended setups to start off the beginning business owner.

But, how effective are the out-of-the-box templates when a business has grown over the years? Without constant attention, a business’s finances may accumulate weak points that leak profit. A professional setup can pinpoint exactly where profits are disappearing for a business owner and lower overall risk.

Here are six questions every business owner should ask when considering an accounting plan.

1. “How much time can I dedicate to reviewing my finances?”

Before any major business decision, a business owner should always look at the financial records to make sure the finances can support the new business development. With a do-it-yourself accounting setup, extra time may be required to sift through the information to collect the right data and support the decision. And even then, knowing what the ‘right’ data is can be a significant challenge.

When considering an accounting setup, always consider how much time will need to be spent researching business decisions.

2. “Am I comfortable connecting hard financial data to real-world decisions?”

Gathering financial data isn’t always the end of the job when trying to ascertain a business’ financial health. A business owner may have access to every instance of money going in and out, but unless those numbers can be put into context, they won’t carry any significance.

Having data is one thing. Interpreting data can be an entirely different matter. Make sure the right financial data is available and understandable when it comes time to make real life decisions.

3. “Can I do my own tech support?”

Computer technology is a great time-saver, as long as it’s working. And as long as it can be accessed. Since most modern accounting is done through computers, it’s doubly important to have a system in place to keep a business’ office running smoothly.

Having computer knowledge, or computer support staff available, can help streamline operations, thereby saving time and money.

4. “How fast will accounting software be understood?”

Having working accounting software is important, but knowing how to use it properly and efficiently makes a big difference. When buying a suite of software, or hiring someone to set it up for you, it’s always a good idea to take training and learning curves into account. If this step is missed, the ‘new software advantage’ is lost: that can mean long hours of overtime for the business owner, or for the bookkeeper.

5. “Are my companies integrated with my accounting setup?”

There is no right way to own a business. However, when it comes tax time, how the owners are involved, how the share structure is arranged, and how assets are owned will heavily influence the money a business owner pays to the government. Property tax planning can make a big difference.

If possible, try to have all business assets and liabilities accessible in one place. That way, information is available at-a-glance and the whole financial picture can be managed.

6. “How much time will new projects, or one-time reports, take to complete?”

Sometimes, a business owner may be confronted with financial questions that don’t occur every month.

For example, when introducing a new product or new service, a business owner may need to know how to best price the new product for a good return. Or, if business is picking up, a business owner may need to know how much money can be devoted to hiring part-time staff.

Good business decisions come from analyzing both accounting data and non-financial information. Make sure that your accounting plan is able to deliver all the information required.

Do-it-yourself Accounting vs Controllership Focus Online (CFO)

“How much time can I dedicate to reviewing my finances?”

Putting together reports and data must be set up manually with do-it-yourself accounting, which can take hours. With CFO, reports [link to “Reporting”] are delivered for review. Once you have the information on-hand, your personal Controller will discuss the results and any recommended actions to improve performance.

“Am I comfortable connecting hard financial data to real-world decisions?”

With do-it-yourself accounting, interpretation may be a challenge. CFO reports include key discussion points. Download a sample report here.

“Can I do my own tech support?”

Office problems either mean solving problems manually, or hiring a tech expert when setting up things manually. CFO provides dedicated technical setup and support through BPSi.

“How fast will accounting software be understood?”

Learning curves can always be a stumbling block when doing things yourself. When CFO sets up an accounting system, all involved parties are given enough training time to make sure they know how to do their job properly and effectively.

“Are my companies integrated with my accounting setup?”

Do-it-yourself accounting systems can usually only look at one company at a time. Through CFO, all important financial information is grouped together in a controllership report.

“How much time will new projects, or one-time reports, take to complete?”

With do-it-yourself accounting, special reports will be done on your bookkeeper’s time, or yours.

With CFO, your accounting setup [link to “Setting Up”] includes access to trained accounting professionals. Once a one-time reporting project has been client-approved, it’s done on our time. Clients only have to think about the end-result.

What’s the First Step with Controllership Focus Online?

Contact us by phone or email. Once we start talking with a business owner, we can recommend what a business really needs.

Contact Controllership Focus Online Now

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