“It’s very important to track all the income and expenses flowing through a business,” says Yaritza Delorenzo, owner and operator of SuperBusyVA, a Florida-based virtual assistant entity.  Bookkeeping is one of the many services Delorenzo has been offering her customers since she and her sister opened shop in 2005. 

Maintaining a formal accounting system “gives structure and organization” to the financial aspects of a business, she says. 

Michael Cole, a CPA and Audit Principal with Holthouse, Carlin & Van Trigt, LLP, in Long Beach, California, agrees. “Ultimately, a computer system (for tracking company financials) can save time,” he says. According to Cole, QuickBooks is a useful and simple program for business owners wishing to track their company’s finances themselves. 

Knowing when to upgrade systems
While he’s an advocate of QuickBooks for business owners just starting out, Cole is quick to point out its limitations. If, for example, a QuickBooks user finds they also need to run Excel to accomplish their financial reporting, that’s a sign it’s time to upgrade the accounting system.

QuickBooks also lacks advanced security controls, which are imperative, says Cole. “You may not want the same person to write checks and make journal entries,” he says.

Another sign it’s time to upgrade your accounting system is if it’s “taking too long to track the accountings of the business,” says Delorenzo. A wide variety of accounting systems are on the market, so, she says, “there is no excuse” not to use one. 

Another indicator it’s time for a change? “When you find yourself tracking information in different places, it’s time to find a better solution,” she says. 

What to look for in an upgraded accounting system
Both experts agree there are several factors to consider when selecting a new accounting program. They include:

• The level of security it offers
• Whether your PC, iPad or laptop are capable of running the software
• If storing data in the clouds is right for you and your business. 

While storing data on the clouds is a relatively new phenomenon, it can reduce costs of data storage while keeping data secure and readily available from any location, remote or otherwise.

It’s also imperative to select an accounting system whose “functionality meets the needs of your industry,” says Cole. In other words, if your business is in manufacturing, your accounting system should be capable of tracking your company’s inventory. “In a best case scenario, the accounting and inventory systems are integrated to communicate with each other,” he says.

While maintaining a well-integrated accounting system may not be the sexiest part of the business day, it is, as Delorenzo says, “a necessary evil.”

---

Tami Kamin Meyer is an Ohio attorney and writer who may be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or @girlwithapen.