The ability to track invoices and payables, handle cost accounting, prepare payroll and monitor

cash flow is absolutely crucial for day-to-day operations.

Reference: Accounting software pitfalls. (2011). Smart Business Orange County, 6(4), 26
If your accounting system is inadequate, or too slow and cumbersome, several steps should be
taken prior to purchasing a new system
Reference: Accounting software pitfalls. (2011). Smart Business Orange County, 6(4), 26
Generic accounting programs may be simple to set up, but can be too limiting; whereas advanced
accounting software and industry-specific software can be much more beneficial, but at the same
time more challenging to implement and use effectively.
Reference: Accounting software pitfalls. (2011). Smart Business Orange County, 6(4), 26
Financial transactions are the lifeblood of a business-they help you pay the people you owe and
get paid yourself.
Reference: Yakal, K. (2009). Do You Need Accounting Software? PC Magazine, 28(3),1
There are other reasons why most businesses need accounting software. Here are some:

Audit trail. If you have multiple employees working on a paper system, you may
have a hard time knowing who's done what to your records, and when. Most
accounting software offers an audit trail, a lengthy list chronicling any additions and
changes made to the system, and who made them. This is a critical security feature.
Multiuser access. Most accounting software can be set up on a network, which
means you don't have to constantly run back and forth to other offices to get the
information you should all have.

Roles and permissions. If you're on a network, you probably don't want everyone to
have access to everything. Accounting software lets you assign roles to users and
define exactly where they can go and what they can do on the system.

Online banking. Most accounting software gives you easy access to your bank
accounts online (if your financial institution allows it). This capability can save a lot
of time, provide real-time banking information, and eliminate some duplicate data
entry.

Dashboards. With so much going on in your financial system, how do you get a
handle on what needs to be done daily? Accounting software reminds you when, for
example, invoices are past due, payroll taxes are due, inventory is running low, and
more.

Accountant access. If you're working with an accountant who blesses your books
periodically, you can give him or her access to your system-and keep working ahead
while your past work is being checked.

Reference: Yakal, K. (2009). Do You Need Accounting Software? PC Magazine, 28(3),1

Financial statements are the primary mechanisms for communicating information on an
organization's financial performance.
Reference: Chapter 1: How Good It Your Accounting Information?. (2000). Cost Management
Toolbox (pp. 3-12). American Management Association International

Accounting software may be used as a tool for monitoring and controlling a business's
profitability or simply memorializing its past performance
Reference: Morris, D. & Chen, L. (2014, May 1). Implications of IRS Examination of
Accounting Software Data. The Tax Advisor.
Accounting software, such as Intuit's QuickBooks, is widely used by small businesses to
memorialize transactions for tax reporting purposes and to monitor and control profitability.
Reference: Morris, D. & Chen, L. (2014, May 1). Implications of IRS Examination of
Accounting Software Data. The Tax Advisor.

According to a survey released in late 2013 by CPA2Biz, the technology subsidiary of the
American Institute of CPAs, nearly half of survey takers were using cloud-enabled business
services to some degree in their firms, up from 44 percent a year ago.
The online survey of 312 CPAs from firms of all sizes revealed that the top five benefits of
cloud solutions are:
The ability of the firm to work virtually and expand its geographic reach (65 percent);
Not having to worry about software updates/maintenance (62 percent);
Business continuity and quicker disaster recovery (56 percent);
Productivity improvements (36 percent); and,
Better visibility into firm and client finances (26 percent).

"Firms are embracing the cloud because it gives them connectivity, mobility and overall
greater freedom. It unties accountants from a physical location and enables them to better
work and connect with clients. In addition, it allows for a reduction in physical office size,
number of servers, need for backup and disaster recovery, as well as the need for staff to
manage these systems," said David Bergstein, strategic accounts manager with Intuit's
Accountant and Advisor Group.
Reference: Alexander, A. (2014, May 1) The right cloud for you; Different types of
accounting firms need to find different approaches. Accounting Today 28(5), p 32

For those businesses without an in-house CFO, or who merely need periodic assistance with
accounting-related issues, a quality CPA firm can also help with what we call accounting
support services. These services can return value to your business worth many more times than
the cost.
Reference: Hyde, G. (2014). Accountants Corner: Make your CPA a trusted member of the
Team. Enterprise/Salt lake City, 44(12), 11
Training and advising new employees who are performing day-to-day bookkeeping tasks.
Periodically reviewing inhouse financials to ensure the assets, liabilities, income and expenses of
the business are being recorded properly for financial statement and tax return preparation and
planning purposes.
Reference: Hyde, G. (2014). Accountants Corner: Make your CPA a trusted member of the
Team. Enterprise/Salt lake City, 44(12), 11
Successful businesses realize the importance of accurate and timely accounting and financial
data. This information can be critical in making day-to-day decisions, ranging from funding the
weekly payroll to planning for capital expenditures. A key challenge in obtaining this
information is an accounting department that can effectively handle these tasks. Many small to
mid-size businesses have found that it is more efficient and cost effective to outsource their
accounting and bookkeeping functions.
Reference: Levinstein, S. (2014). Outsourcing & Bookkeeping. Orange County Business Journal
37(48), B-54
Tax return preparation - Periodic and annual tax return filings, as well as payroll and sales tax
returns, are technical and detailed tasks. It is a tremendous asset to have these done by personnel
who perform these functions on a regular basis and are specifically trained and kept up-to-date
on changes in tax law.
Cash management - Have you ever wondered how your company can be profitable, yet still not
have enough cash to pay the bills? An accounting professional can help optimize your cash flow
and advise you of the best methods for your particular situation.

Monthly financial statements and general ledger - This is a popular task to outsource because
business owners often become tired of internal errors. Competent professionals can provide
timely, accurate information for management decision-making.
Reference: Levinstein, S. (2014). Outsourcing & Bookkeeping. Orange County Business Journal
37(48), B-54
Advantages of Hiring an Accounting firm
Most accounting firms offer accounting and bookkeeping services, management consulting,
assurance services or tax management
Modern advancements in technology have made it possible for businesses to manage most of
their financial areas themselves. Its an all-around tool which can maximize your business
performance. On the other hand, accountants provide more value by offering financial advice
when making key business decisions.
Professional accountants can understand your financial situation and goals. Their advice can help
reduce tax on capital gains or prepare for your future. A software program cannot anticipate these
things.
Cost is the number one reason people turn to accounting software for help
CPAs are required to meet some of the highest standards of any profession
They undergo a rigorous course of study during college and then must successfully pass the
Uniform CPA Exam, a highly demanding standardized exam of business, auditing and general
accounting skills. In addition to the demanding licensing procedure, CPAs are required to
maintain ongoing continuing education in order to stay abreast of changing laws and
regulations.
The fact that they are licensed experts in their field ensures that you will get consistent, reliable
and ethical accounting services.
A distinct advantage of hiring your own experienced accountants is the continued business and
financial advice
Most CPA firms are started and managed by accountants who gain years of experience working
in corporations, small businesses, nonprofit organizations and government settings.
Disadvantages of hiring an accounting firm
The disadvantage to this strategy, however, comes in the form of a lack of control over
accounting processes.

Advantages of Accounting Software

The advent of accounting software has made it easier for entrepreneurs to manage and track their
finances. Its a cost-effective way of running a business. However, it also has its advantages and
disadvantages.
Software removes all the time-consuming manual processes and streamlines everything. Aside
from automated calculations and formulas, it can generate reports with a click of a mouse.
Accounting software can also share information to other users through email or other electronic
means. It makes everything seamless and organized.
Using accounting software makes it easier for businesses to share and integrate information.
Disadvantages of Accounting Software
Training
Prone to fraud
An accountant brings significant experience and expertise to the corporate table,
allowing you to benefit from his or her years of conducting similar work for other
businesses. While accounting software has become increasingly sophisticated, it
can't answer every question you might face. - See more at: http://accountingsoftware-review.toptenreviews.com/accountant-vssoftware.html#sthash.x6LBFkHo.dpuf
Increasing Company Efficiency Web-based accounting software allows you to whip
through accounting duties without any outside intervention. Whether you're
invoicing clients, preparing your corporate taxes or reviewing the Q4 budget, you
can minimize the time it takes. If you know you need something completed in an
hour, you don't have to wait for someone else to respond to your request. - See
more at: http://accounting-software-review.toptenreviews.com/accountant-vssoftware.html#sthash.x6LBFkHo.dpuf
Business owners know that internal audits protect their firms from fraud, mistakes
and other hazards. A professional, certified accountant can perform audits with
more precision and depth than a computer program - See more at:
http://accounting-software-review.toptenreviews.com/accountant-vssoftware.html#sthash.x6LBFkHo.dpuf
Keep in mind, though, that modern accounting software introduces numerous
safeguards against errors and omissions. - See more at: http://accounting-softwarereview.toptenreviews.com/accountant-vs-software.html#sthash.x6LBFkHo.dpuf