CPA_Practice_Advisor_July_2020 - 8

REVIEW: SMALL BUSINESS ACCOUNTING SYSTEMS

By Mary
Girsch-Bock

Mary Girsch-Bock is a freelance writer specializing in business
and technology issues and is the author of a book, several HR
-handbooks, training manuals, and other in-house publications.
She can be reached at mary.girschbock@cpapracticeadvisor.com

Primary Driver for the Economy
AS OF THE beginning of 2020, there were more than 30 million small businesses
operating in the U.S. While no one knows the full impact that COVID-19 will
have on small businesses in the long-term, the fact is that small businesses
are a primary driver for the economy and will continue to be one, even after
the crisis has passed.

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data inaccurately into a software application, but the
odds of that happening are much less than the odds of
transposing numbers in a spreadsheet, or adding the
numbers wrong from a ledger.
■■ Easier access to company finances for both of you.
Cloud accounting software is extremely easy to use and
even easier to access. Both you and your client can have
access to company data from anywhere, at any time.
You can't beat that.
■■ Flexibility. There are numerous add-on modules that
can be added to just about any accounting software
application. Need to manage business expenses? How
about inventory? There's an app for that.
The products reviewed in this issue are designed for
small businesses with between 1 and 100 employees.
They vary widely in features and functionality, but they
all offer a better option than manually tracking financial
transactions. We also looked at Sage Intacct, for larger
entities, and Invoiced, for automating payables.
In our reviews, we examined a variety of features in
each of these applications, including:
Core Accounting Features - This category is one
of the most important, with core accounting capability
including GL, AP, and AR functionality.
Relationship Management - If you need to track
customers, this is an important area for you.
Cloud Capabilities - Can you access the application
remotely? What about other cloud functions, like online
bill payment, mobile apps, and electronic banking?
Management Features - Important for growing busi-

GL, A

P, AR

Whether your small business client works solo,
freelances, or has serious growth plans, the one thing all
of these businesses need is accounting software. Nothing
like its predecessors, today's small business accounting
software is just as suitable for the one-person operation
as it is for the business with 25 employees and growing.
Designed to be user-friendly and cloud-accessible in
most cases, these applications no longer require expensive hardware and even non-accountants will find it easy
to enter financial transactions and run reports. Even
those requiring installation can usually be downloaded
from the vendor's website, eliminating installation from
a CD entirely. These reviews will be especially useful for
advising small businesses who have not used accounting
software previously or are considering switching from
one small business program to another.
Still not convinced? Here are a few other advantages
to having your small business clients use accounting
software:
■■ Reduced errors. This is a big one. If you're tired of trying
to decipher multiple ledger accounts and spreadsheet
transactions that don't make any sense, convince your
client to use accounting software. In most cases, they
will be able to share their data with you electronically,
or you can just sign into the application and access it
yourself. Either way, the workload and the number of
errors drop for both of you.
■■ Accurate reports. Using manual accounting systems,
reports are only as accurate as the numbers entered
into the ledger. However, even if the numbers are
entered right in the ledger, that's no
guarantee that the numbers will
be reflected properly in financial
statements. Yes, it's true that
your client can certainly enter

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JULY 2020 ■

www.CPAPracticeAdvisor.com

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nesses, we looked at features such as dashboards, business analytics, and management reporting availability.
Tech Issues - Integration with other applications
may be of importance to you and your client. Is the
product able to integrate with other applications? Can
you easily import or export data?
Help/Support - In this area we looked at the various
help and support options available in the application.
Are there wizards available? Can you get answers to
questions easily? Are the user manuals or other tools
readily available to help new users?
If you're not sure where to start, why not download
a few of the demos that many of the applications offer
and have your client try them out to see if they fit. So, no
more excuses. Get started today, and find an application
that will work for both you and your client. ■

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