Setting up a double-entry bookkeeping system - AccPac Simply Accounting for Macintosh software program - Hassle-Free Bookkeeping - buyers guide - Tutorial

Home Office Computing,  April, 1992  by Stephen L. Nelson

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POINTING OUT THE PITFALLS

By carefully following the preceding step-by-step guide, you should have minimal problems setting up your own bookkeeping system. However, there are two common pitfalls to be aware of. The first one is choosing a system that does more than you want it to do. If there's one curious characteristic of accounting packages, it is that you can acquire a tremendous amount of horsepower for very few dollars. For example, you can buy software for only $50 that's perfectly adequate to run a $10 million business. Unfortunately, the end result of this bargain pricing is that many people purchase much more accounting power than they even need.

A second problem relates to the fact that for full-featured, double-entry bookkeeping systems, you really do need to know double-entry bookkeeping. For example, you need to know what a debit is. You need to know what a credit is. And you need to know what journal entires, trial balances, and general and subsidiary ledgers are. I'm not saying that you must become a nuclear physicist. But either you need to be an accountant or hire someone who is. If you want to become your own accountant but don't currently possess the skills, simply take an introductory course in accounting. In addition, some packages include tutorials for budding bookkeepers.

Whichever way you go, running a bookkeeping system that's set up correctly can make the difference between a business that thrives and one that barely survives.

COPYRIGHT 1992 Freedom Technology Media Group
COPYRIGHT 2004 Gale Group