Could Your Software Pay Its Own Way?
By Lee Rychel
Every month we get a number of phone calls from clients addressing accounting challenges, typically originating from running two book-keeping systems. You probably know that your PROFITsystems software includes a fully-integrated accounting system. All transactions entered into your software automatically create G/L distributions defined by your system defaults. Whether you use it or not, your accounting is being done behind the scenes every time you buy or sell anything in the software.
When I traveled to clients who were getting set up on the PROFITsystems software, I would always encourage clients to consider using the accounting tools nested inside this robust software package. As a retailer using the software for many, many years – I insisted on the store using these built in accounting tools. Why? Because it eliminated paying someone to do what was already being done for us. In my store, even a receipt for pizza for the sales staff on a busy Saturday was immediately recorded in the Cash Paid Out feature in Enter Cash. Distribution to the proper G/L account was done at that time. In other words, nothing happened in the store that we did not record straight to the G/L.
So what’s the hold up? Why wouldn’t a retailer want to save money? If I have the information at my fingertips, why would I pay someone else to give me exactly the same result? It’s like driving around in a lease vehicle while a perfectly good automobile sits in the garage. An automobile you are making payments on, insuring and maintaining. Does that make sense? In running a retail business my goal was twofold – make sure we were growing the business profitably and control costs at every turn.
And the reason retailers don’t use the built in accounting? You already know the answer. The reasons range from any number of topics including:
- Don’t understand how it works (there is help everywhere you turn here at PROFITsystems)
- Don’t have CPA’s working in the store (not at all necessary)
- Accountant won’t ‘allow it’ – don’t get me going on this one
- Account numbers don’t make sense – (there’s good logic behind them, just ask me and we’ll explain)
- My sister does the books – ok, this one I can’t win
- We love XYZ accounting system and would never change that! A change that can save you real money? Let’s chat about that.
Each store has their own reasons that make crystal clear sense to them. Many see accounting as the boogey man behind the business and only certain special people can keep him at bay. Or is it? In my stores, we never had a CPA on staff. Didn’t need one. Remember what I said about the G/L getting all those numbers automatically? Well, it does. Properly setup, the daily record of accounting activity takes place right inside the software.
But what if I never used it before? Won’t those numbers be a mess if we didn’t set it up right? Indeed. And with a couple of keystrokes we can empty that G/L of all that old info. Once the accounts are setup right (most retailers use our defaults) then it’s an easy process to get it loaded up again with good info.
I’ll close with this tale of accounting wars I fought at one retail organization I managed. We had three stores, two of them on one fiscal year, the third was on a different fiscal year. One store carried a lot of very large receivables as it was a commercial interiors business. After our first year of running the PROFITsystems software, we brought our Big 8 accounting firm in and explained we no longer were going to provide them with monthly data for them to key into their system. We would print our own financials and they would sign them. Which, after careful study and proving the reconciliations were indeed accurate, they agreed to do.
In the end we cut nearly $20,000 dollars out of our annual accounting budget. Yes, the comma is in the right place. This firm was certainly instrumental to us – no retailer should work without sound financial advice. But their mission became helping us to manage assets and calculating depreciations for our office to enter into the software and preparing our taxes. The busy work was already done.
If you are ready to take a look at what you can save in accounting costs, please call us and we’ll talk about making your life easier. You too can immediately begin reaping the benefit of financials on demand (no waiting) and reports your bank and vendors will trust and accept – all for a lot less cost to you and your business.