Common Mistakes to Avoid When Buying Accounting Software

It is not anymore uncommon for business owners to adopt the use of accounting software to make the business’s transactions easier, more free-flowing, and hassle-free. Its benefits are insurmountable. However, they are also being warned to not commit common accounting software mistakes.

Of the many accounting mistakes that owners commit, there is one that stands out among others. According to the Executive Vice-President of K2e.com, Randolph Johnston, this mistake is the decision of business owners to skip training their staff fully on the use of the software for accounting.


"This is an item that should be budgeted and not cut. Even though technology vendors will portray software as being easy to use, set up and integrate - it rarely is," said Mr. Johnston.

And so here is a rundown of these mistakes and the things that can be done to avoid them.

1. Many business owners immediately jump into researching for the best accounting software small business they can find without actually trying to assess if the company ever needs one. As a result, the needs of the business are not being delivered. So, it is best that business must first try to understand if there is ever a need for such software.

2. Business owners get to excited to get software for accounting on line in order to get rid of headaches and much paperwork. In the end, they are not able to get the software that is scalable. Scalable means that the software can cope to the changes and demands of the business’s accounting even if it triples or doubles its size. So before, getting that software, make sure this feature is present.

3. Business owners also neglect the fact that they need software that can be integrated with other software applications. This is necessary especially when there are applications which are necessary for the operations of the business.

These mistakes have to be taken into consideration so as not to commit them. Accounting is a very crucial aspect of a business to keep itself afloat in these times’ tough and fierce competition.

Mobile Cloud Computing Market to Grow by 2016

Cloud computing is off on a good start and it does not end there. And in the coming years, it will increase and get larger even more as it penetrates the mobile world.

Mobile cloud computing, still an accounting software, is expected to generate an income of $45 billion by 2016. This is according to the prediction of Visiongain, an independent information provider. This will be made possible with the enormous popularity of smartphones.

A “rapid growth stage” is being predicted for mobile cloud computing as invoicing software.

The development of cloud-based mobile applications will be encouraged by BONDI, OneAPI, and HTML5, which are all technology enhancements. This is seen to happen in 2014.

Many companies and small businesses are seen to join in the trend of adopting this software for accounting despite issues of feasibility, security, privacy, and accessibility.

In five years’ time, cloud computing is expected to be valued at $240 billion. This is a great rise from its current value of only $77 billion. And of course, it is the mobile market that will drive this much income.

With all cloud computing can do, it will surely change the way a desktop looks forever. This is according to Dr. Mick Grierson who is a computer lecturer at Goldsmiths, University of London.

Accounting Software Inflates Profits and Close Loopholes

Now, more than ever, there is a need to adopt accounting software by every business. This is after reports revealed that banks are actually making use of loopholes in accounting regulations to their advantage where they could alter results like profit levels and staff bonuses.

The Adam Smith Institute says banks utilize complex financial products that may conclude a profit value that is different from the actual one.

The blame can be put on the International Financial Reporting Standards (IFRS) according to Gordon Kerr, a former banker who authored the report. The IFRS allows banks to include in their current profits certain expected future income.


"The accounting regulation system needs radical reform so that banks are not encouraged to invest in risky assets to make themselves seem more profitable than they really are. Honest balance sheets are the cornerstone of a healthy financial system – right now, we don't have the transparency we desperately need to avoid a repeat of 2008," he said.

An example of this action is when banks buy CDS or Credit Default Swap. The CDS allows the banks to declare cash flow certainty despite the possibly of uncertainty.

"Accurate accounting is at the root of the legal and scrutiny framework; without accurate accounts basic laws are incapable of enforcement. As this report shows, banks have been using loopholes in these rules to inflate their accounts and create false profits to pay for bonuses and short-term gains for their shareholders," said Kerr.

So in order to get accurate and fair results, businesses must use software for bookkeeping or online accounting software. Accounting software business will definitely help avoid what had recently happened to Macomb County. It incurred a financial error that resulted to a $1.7 million hole to its budget. From that experience, there is truly a need for accounting software.

Australian Stocks Hits two-week Low over Europe Recession Fears

Attention customers of Australia accounting software and accounting software providers alike!

As poor data out of Asia and the bad news of the growing outlook of a recession in Europe are sending investors running for cover, the Australian stocks dropped to a two-week low.

Stocks have been closing lower for the fifth day out of six after more dismal news comes from Europe overnight which saw an increase of Italian bond to a euro-era record, which then has triggered a sharp selloff in commodities as investors were rushing to the perceived safe haven of the dollar.


Data revealed that China's manufacturing sector has continued to contract in December as exports slowed compounded fears that the euro zone debt crisis is already slowing growth in Asia.

According to CMC Markets sales trader Ben Taylor, a feeling of nowhere to hide at the moment is rampant among investors. And the once promised safety of gold has been hijacked in US dollar strength. US bonds in return give you little to no real return and equity markets are quickly losing their appeal.

At the close today, the benchmark S&P/ASX200 index has dropped by 50.7 points, or 1.2 per cent, at 4,139.8, while the broader All Ordinaries index lost 52 points, also 1.2 per cent, to 4,197.8.

On the ASX (Australian Securities Exchange) 24, the March 2012 share price index futures contract cut down 48 points or 1.2 per cent to 4,116, with 37,911 contracts traded while the December share price index futures contract, which expired at midday, dropped 26 points to 4,153.

Leading the market lower are the miners and energy stocks as the resource-heavy ASX became the worst performing index in the region.

The worst performers were the gold miners, shedding 3.8 per cent.

A 2.9 per cent to $30.88 loss was attributed to Newcrest Mining while BHP Billiton has showed a drop of 64 cents, or 1.8 per cent, at $35.06. The Rio Tinto shed $1.76 to hit $61.40.

According to IG Market's market analyst Stan Shamu, the huge drop in gold over the past few days has broken several support levels on the way down and if there is a break lower, there could be assumption that the gold super-cycle is over.

In Sydney, the price of gold was at $US1,567 by 1651 AEDT; down $US72.83 from Wednesday's local close of $US72.83.

Furthermore, banks have suffered a hit as ratings agency, Fitch, downgraded major French banks Credit Agricole and Rabobank on the back of escalating problems in Europe, along with France's Banque Federative du Credit Mutuel Denmark's Danske Bank and Finland's OP Pohjola Group.

Meanwhile, on the local state, National Australia Bank chairman Michael Chaney has united with Westpac this week in giving out a warning that Europe's debt crisis is pushing up the costs of funding for banks and the problem is far from over.

The warning came as NAB closed down 38 cents, or 1.6 per cent, at $23.48.

Westpac has also showed a drop of 34 cents at $20.46, while Commonwealth Bank was down 75 cents at $48.63 and ANZ was down 19 cents at $20.78.

Why Cloud Computing is a Must for Businesses?

Cloud computing is increasingly becoming popular among business owners when it comes to their accounting software for business. In fact, Phil Wainewright, the vice president of Eurocloud, is saying that the norm now for businesses is cloud computing.

Therefore, it is necessary to adopt this accounting software for small businesses in order to get the best and maximize every company’s earnings.

Bill Claybrook who is the principal analyst of New River Marketing Research in Massachusetts says that cloud computing must be a technology that companies must explore. So why is this so?

1. Cost savings is a primary advantage. When a company buys data servers, coolers, and other equipment to save data, it spends too much compared to using cloud computing. Reviewing savings potential is also very convenient making profits even higher.

2. The business gains agility. There will be times in a company when it would need more servers and more data storage space. And only cloud computing can provide this instantly without having to spend that much.

3. Data center flexibility is another advantage. Existing data centers can be managed by cloud computing.

4. Security management of mobile devices is managed. This can involve the mobile devices that are being used by the employees.

5. Maximized time and workforce is an added advantage. While cloud computing can do a lot for a company, IT staff can be allowed to focus on new and more pressing concerns in the business.

Mr. Wainewright says "It's growing somewhere between - depending on who you talk to - 25 and 40 per cent a year. [It] is going to become mainstream very fast.” So every business owner has to use this accounting software.

Cloud Computing Will Take Over by 2016

It has been seen that cloud computing will continue taking the limelight even in the next 5 years. The conclusion was drawn after this said accounting software made it to the top 10 predictions for the IT industry. This was performed by the research body, Gartner.

By the end of 2016, more than 50 percent of Global 1000 companies will be storing their data and information in the cloud as their accounting software for business. This is a huge increase from the more than twenty percent who are already using the technology today.

However, there have been mixed reactions on this subject. According to Jignesh Shah, Vice President for Business Infrastructure Solutions of Software AG:

“In markets like North America it already accounts for 20 to 25 per cent (of IT data storage). Also, it is important to keep in mind that when talking about applications, it is not just to do with big chunky applications like Oracle, but a whole plethora of specialised apps.

“If you look at the entirety of Cloud computing infrastructure today, SaaS is the only layer that is really making money. And the margin is growing, both from an enterprise (consumer) and vendor point of view.”

Furthermore, he said that it will be difficult for companies to fully utilize cloud computing.

On the other hand, Andrew Bearsley of HP Application LifeCycle Management said:

“I look at things from an applications and transformational perspective, and the reason I strongly disagree with any suggestion that by 2016 over 50 per cent of all ISVs will be pure SaaS providers is, quite simply, the word ‘pure’.”

Today, many companies are already utilizing this cloud-based solution but are combining this with the traditional physical equipment in the office.

Survey: Small Business Owners Worried as Running Cost Rise

The soaring of running costs are driving small business owners to become more pessimistic. However, they are seen to bounce back according to a national happiness survey.

Only 48 percent of businesses are expecting an improved performance in the coming 6 months, according to Westpac Local Business Sentiment Survey. Furthermore, it said that this figure is 11 points down from the May survey. Among those that cause the biggest worries are increased costs and declining revenue.

From just 33 percent, there are already 40 percent of respondents who now believe that it is becoming more difficult to run a business.

From the survey, it has been found out that 20 percent of businesses are being affected by managing costs such as electricity. This is higher than the figure six months ago according to Westpac Victoria General Manager, Julie Rynski.

"It is being seen as one of the greatest challenges for small businesses. It has meant they are not feeling as confident as they were. The level of optimism has certainly declined but not as much as it has in other states,” said Rynski.

According to Narelle Telford, Red Parrot Café co-owner in Gippsland town of Nojee, customers are opting to share their meals or buy snacks that are a lot cheaper. As a result, his business is also going through a tough time.

"They are very nervous about spending and we don't know how long that is going to go on for, of course,'' Ms Telford said.

"We've still got customers coming in, which is lovely, but they are spending less. The bottom line is at the end of the day the till doesn't hasn't got as much money in it to pay our bills. When you are in small business you just have to make the most of it and just think of ways you can deal with any situation,'' said Ms Telford.

From ranking among the happiest businesses in the nation six months ago, Victorian businesses are now at rank 56.

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EU shake up Audit Market: Accounting Software users' Revamp Operations

The £600 million audit market is now under scrutiny as it faces a major shake-up.

As authorities attempt to make improvements on standards across the board, some of the audit industry's largest users of software for accounting may soon be asked to reorganize their operations.

With city firms, large companies and smaller accountants who have been using accounting software for small businesses have been expressing their concerns for several years of the "Big Four" - PwC, KPMG, Deloitte, Ernst & Young – and their stranglehold on one of the most important cogs of corporate British life. Michael Barnier, internal market commissioner at the European Union has told the “Big Four’ that splitting their European bodies could be the key to an upturn in quality and opening up of the market.


EU market commissioner Barnier will publish a draft law which, if approved, could result in the splitting of the “oligopolistic” networks of KPMG, PwC, Ernst & Young and Deloitte which check the books of nearly all blue chips in the world.

It is thought that the separation of the audit and consulting arms of each business may bring about an improvement in standards when it comes to working with accounts.

The proposal of Minister Barnier came soon after his plan of forcing the large firms to share their workload with smaller companies was shelved.

Rivals, such as Grant Thornton, BDO, Mazars, RSM and Rodl & Partner, have welcomed Barnier's aim of opening up the market.

Meanwhile, Barnier’s other idea of making it compulsory for organizations to change their auditor every six years has also been backed.

However, the Office of Fair Trading suggestion that the present state of affairs is damaging the economy was noted to be a serious accusation at a time when Britain is in danger of slipping back into recession.

Jean Stephens, chief executive of RSM International, even told newspaper that it is important that Mr Barnier does not allow his plans for improvements to the accounting market to be "watered down".

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