Accounting software has helped businesses across the globe, and the power of automation in accounting has proven beneficial for accounting teams and businesses. However, as is with everything that gains credibility, some myths got associated with it.
In this article, let’s bust some such myths and misconceptions about accounting software.
#1 – Accounting software eliminates the need for a bookkeeper.
This is one of those myths that has been going on for as long as AI and automation have been here. The truth is that accounting software doesn’t intend to replace bookkeepers but to help them in their day-to-day operations.
Accounting software comes loaded with functions that simplify a bookkeeper’s work and allow them to focus on more strategic tasks. This software aims to give bookkeepers a platform to have all accounting details in place and properly arranged. Bookkeepers’ value to an organization cannot be taken away by using accounting software. However, their lives can be made simpler by allowing them to use accounting software to track and manage accounts.
#2 – Accounting software is costly, so the price is the most important criterion when selecting software.
The USP of accounting software is more on helping you save time. So, when you are looking for accounting software for your business, you should prioritize time-saving over cost-saving. Further, this myth is quite untrue because accounting software is not necessarily costly. The pricing depends on the modules you need for your business and is often dynamic.
At the end of the day, the price that you pay for your accounting software comes down to the features, tools, and modules that you require. This makes accounting software a truly scalable option for growing businesses.
#3 – Accounting software ensures that all business accounts and records are automatically sorted.
While this is not entirely false, it is not entirely true. The word ‘automatically’ tends to confuse people who are just getting to know about accounting software. The truth is that accounting software works on the data you feed it. So, if your data is correct and to the point, your records will be automatically managed. However, if you don’t feed data promptly or don’t organize your records properly on the software, the software alone won’t be able to do much.
Accounting software should not be used as an excuse for bad bookkeeping. You still need to properly manage and maintain all the receipts, invoices, and other financial documents and ensure that they’re uploaded to the software. Only after this data is with the software does it bring out its magic and helps with organizing and analysis of this data.
#4 – Modern accounting software won’t work well with traditional, legacy business systems.
Again, this myth is as far from the truth as possible. The fact is that all accounting software available today easily integrates with most of the legacy business tools. This includes CRM tools, HR tools, banking tools, and more. Accounting software integrates with all of these tools and helps you get all the information comprehensively in one place.
#5 – Accounting software stores data on the cloud, which is not safe
Physical data storage is vulnerable to thefts, damages, and disasters – which can result in data loss. On the other hand, Cloud-based solutions are way more protective and secure on this front. They work on measures designed by cybersecurity experts who understand the importance of financial data for businesses. Further, cloud data is regularly backed up, ensuring that you never lose your data. Even if your physical devices fail, you will have all your required data on the cloud.
In conclusion, these myths hold no ground compared with the real situation. The truth is that accounting software has proven to be the perfect companion for accounting teams and has helped them streamline most mundane operations. In doing so, accounting software has provided businesses and accounting teams with to focus on more strategic tasks. If you wish to achieve the same for your business, check out our accounting software online!