As you read this situation, try to be open-minded to see if some or all of the information applies to your company.
Company Y installs QuickBooks accounting software for their small business with the best of hope. Their decision was made based on a friend’s recommendation, a person with no knowledge of accounting software, but uses QuickBooks himself. You follow this expert recommendation, go online, and look for the cheapest version of the software to save money. On a Saturday night, you install the software, follow all the system defaults, and then you’re ready to go. You ask your accountant for some help, your spouse kicks in some time, and then it’s time to actually get information out of the software. You run reports and they look like they need some special forensics to find out what your checking account balance is, or how much money you’re making.
You spend hours, days, weeks, months trying to fix it yourself, but to no avail. Your company’s fiscal year ends and you give your accountant your QuickBooks data file and they have a horrified look on their face and ask you the million-dollar question: “Can you send us all your bank statements, checks, deposits, and bank statements and we will recreate your information?” Of course, they won’t say it this way, but rather use code words like “we’ll need to dig into this a bit more.” All of this takes time, and of course, money. Now what seemed to be good intentions has turned into a never-ending project that will cost you thousands of dollars for information that is absolutely useless, not to mention outdated. You finally get your tax return filed, get penalized for not making sufficient estimated payments, and opportunities for planning are lost. In late March or April, you’re back to the beginning with the following statement “I’m really going to get my books in order this year…seriously.” And the following December… well, I think we know how this plays out.
Take advantage of the information you have and make sound business decisions. Planning is key! For more information or to find out how Moker CPA can help you, please visit www.mokercpa.com