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What’s the Risk of Not Using the Best Accounting Software?

Author : Bill Gerber
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Companies who outsource accounting duties to third parties do so for a variety of reasons: to cut back on overhead, ensure accurate financial reporting, and gain an edge against their competition. But if a company goes about outsourcing their accounting duties in the wrong way, they can inadvertently undermine their own efforts. Especially when it comes to doing business with a third party firm that doesn’t make use of top accounting software for the storing and transmittal of financial information. But does incorporating top accounting software into the mix really make that big of a difference? The answer is an unequivocal “Yes!” Here’s how.

 

· Failing to use the best accounting software to transmit sensitive information when yououtsource accounting leaves you at risk of information theft by hackers who could take advantage of weaknesses in security or simplicity of design.

· In addition to the risk of information theft, there’s also the very real possibility that you could be hit with fines from the Internal Revenue Service if your financial statements are found to be inaccurate. Lost data can result from using unreliable or cheap accounting software.

· Using anything but the top accounting software can also hamper your efforts if that software isn’t conducive to company growth. Plenty of companies have started out using simplistic accounting software programs, only to find out a couple of years down the line that they’ve outgrown it and are then faced with having to implement a timely and costly conversion of systems.

 

For this reason, it’s important to ask questions about the kind of software that a third party firm requires you to use when you outsource accounting duties. The best possible scenario is to hire an outsourced accounting firm that’s flexible enough to work with a variety of top accounting software programs. To find out more about what to look for in a third party accounting firm, visit AccountingDepartment.com.

 
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