If you were operating a business in the '90s this scenario is probably familiar: You purchase a desktop accounting software with some basic transactional tools. Then you spend dozens of hours issuing checks, recording invoices, and other basic obligations. Everything else, especially financial and compliance accounting, is sent off to your professional accountants.
This was the dominant mode of accounting pre-internet, and it didn't meet anyone's needs especially well. Business owners poured tons of time into accounting, but due to their lack of professional expertise the books were often incorrect and disorganized.
Because of the technical limitations of the 1990s, small and growing businesses had to contend with deeply disruptive issues like:
- Inefficiency – Simply meeting basic accounting obligations took a huge investment of institutional resources.
- Expense – The cost of accounting could exceed the value it delivered.
- Inaccuracy – Financial information was unreliable and delivered little in terms of strategic insights.
- Relevance – Financial information was outdated, causing decision making to be slow and uncertain.
With the rise of the internet and later the cloud, an innovative form of accounting evolved. Stakeholders inside and outside a business can now collaborate on a shared platform. Information can flow seamlessly between departments and out to accounting firms or managed services providers. Most importantly, the challenges of accounting are replaced by opportunities.
The question is, why do so many businesses continue to rely on outdated accounting software that was underwhelming even 20 years ago? The issues that were endemic in the '90s have not been resolved. They have actually gotten worse as accounting footprints have grown.
There is no case for continuing to use the strategies and software of the distant past. And there is just as little argument for avoiding the benefits of the cloud and the advantages of Managed Accounting Services. Business-as-usual is a significant liability and a totally unnecessary burden.
Implementing cloud accounting tools is a minor process but a major upgrade. Once they are in place it's easy to send more accounting workloads off-site and bring more accounting expertise on-board. The result is that accounting improves and requires less input at the same time.
Cloud and outsourced accounting are now more than a decade old, which means they've reached maturity and identified best practices. Replacing something familiar with something new doesn't have to be uncertain since these accounting approaches are tested and proven. When you're ready to leap into the present, contact AcctTwo.