Getting Away from ‘Shoebox Accounting’ (Reasons to Computerize)
In the business world, time means money. Accounting systems, or lack there of, can be extremely costly especially for businesses that use ‘shoebox accounting’. The colloquial term refers to the practice or habit of keeping pertinent accounting and business documents in a pile or in a box throughout the year. This is extremely detrimental to the reliability of financial information. The importance of a business that finds itself in this situation, to move towards computerized record keeping cannot be stressed enough.
Consequences of This Outdated Practice
First, there can be excessive costs associated with the professional services a business might need. Searching for documents or important pieces of information is time-intensive and wastes money. Second, by keeping documents in a pile somewhere, obviously, drastically increases the chance of misplacing or losing an important piece of information.
Reasons to Computerize
There are many reasons why a business should have a computerized accounting system instead of ‘shoebox accounting’. Using accounting software will keep your information organized and improve your financial reporting. Accounting software is a better method of record keeping since it is in real time, and sometimes can be customized to the business needs. There is also the added benefit of ease in sharing financial information with your accountant, creditors, etc. Lastly, a good accounting system collects and organizes info and then allows you to analyze the financial data.
New Year – Say No to ‘Shoebox Accounting’
Start today, and say ‘NO’ to the bad habit and start the New Year with the right accounting software for your business’ needs. Take the time to invest in a better method and cease the headache that is ‘shoebox accounting’. Reach out and contact your accountant to further discuss accounting software and how it can benefit your business.
Contributed by Maryney Ramirez