Every business ought to have access to accounting software, whether through your accountant or in-house software. The biggest thing with any accounting software is setting it up correctly and precisely for the accounting needs of your business from the beginning. It is important to correctly set up your chart of accounts into the software that you choose. Your chart of accounts is the code that you apply to each line item in your ledger.
The first part of that has to do with your cash and assets. The next part of it are liabilities, and bank staff, and credit cards. Then, you get into the income end of the business and the expenses. Let’s say for example, you use a template of a flower shop, and you say to yourself, “A flower shop and an awards shop can’t be that much different.” But they can be worlds different as to how you set up your chart of accounts. If you go in adopting a template for a different type of industry, you will find out soon enough that you need to have a code for that which is unique to your business.
Accounting software is one of those things that you can start off with buying a software program. When you set it up the first time, make sure the off-the-shelf program you bought fits perfectly for your type of enterprise.
—Vince DiCecco, Your Personal Business Trainer