When you’re deciding to outsource your accounting (which we love at Seller Accountant!), you want to choose a system you can “set and forget” – there’s no reason to switch systems every year. But if you find a firm you like, and they use a different system than your current accounting, is switching worth it?
Overall, it’s most important to be able to access your books and understand the basics of your system, whichever that may be. As a business owner, being completely hands-off of your accounting can be dangerous, so no matter which system you choose, you should at least understand the ins and outs of the dashboard and how to read your data.
Once you have a grasp on the basics, our suggestion is to choose a firm (or an accountant) and let them use the system they’re most comfortable with. You’ll run into fewer software issues and have more confidence in your accountant if they’re able to start work on your books right off the bat.
The exception to this would be if you’ve used a particular system for a long time and really love it. In that case, it’s likely that you’ll find a firm that specializes in your favorite system, like Seller Accountant does with Quickbooks Online.
To Switch or Not To Switch?
When deciding whether to stick with your current system or change for a particular firm’s preference, here are a few questions to ask yourself.
Is my current system obsolete?
Several systems that were heavy hitters in the past no longer hold up under the needs of today’s e-commerce sellers. If you use an older system, like Sage or Quickbooks Desktop, it’s likely that your system is no longer pulling the weight you need it to for your business, and it would be worth it to upgrade.
Does my software complete the accounting process?
Some accounting softwares function just as a dashboard or spreadsheet and don’t extrapolate the data in any meaningful way. As a business owner, you should be using a software that allows you to view a Balance Sheet and a Profit and Loss statement (P&L), since these allow you to fully reconcile your cashflow month over month.
How much do I care about my software?
Are you the kind of business owner who checks their own books every week – or even daily? If so, you should look for an accountant who already is familiar with your current system; no need to reinvent the wheel here.
If you are a fairly hands-off owner and prefer to check in with your books only quarterly – or sometimes even less than that – then choose a firm you enjoy working with and let them bring their preferred system with them.
The Most Common Accounting Systems
The two most common accounting software options for e-commerce sellers are Quickbooks Online and Xero. There are a few pricier options for large and complex sellers, but Xero and QBO are the two we see most often from our clients and prospective clients. Check out last week’s blog post on choosing which system is right for your e-commerce business.
If you’re interested in learning more about how Seller Accountant can take the stress away from your bookkeeping, book a free 15-minute discovery call today.