Comments on: Accounting Advice for Founders http://mvmpartners.com/blog/?p=156 Advice for entrepreneurs on how to build and finance a start-up. Fri, 21 May 2010 20:48:46 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Business Cash Back http://mvmpartners.com/blog/?p=156&cpage=1#comment-2283 Business Cash Back Fri, 19 Jun 2009 08:43:35 +0000 http://mvmpartners.com/blog/?p=156#comment-2283 Founders is neither an attorney nor accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice. ... Founders is neither an attorney nor accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice. …

]]> By: John http://mvmpartners.com/blog/?p=156&cpage=1#comment-2282 John Tue, 09 Jun 2009 19:09:28 +0000 http://mvmpartners.com/blog/?p=156#comment-2282 While QB seems to be fantastic for very small operations, and to get your feet wet with accounting, as a reseller of SAP Business One, I see the disastrous results of companies using QuickBooks. The lack of a true audit trail and the ability to go back and edit data is a big problem. The finite limit of transactions sends a lot of new customers my way. <br><br>When one company approached their bank recently and asked for a $5MM revolving line of credit using inventory for collateral, the banker asked what they used to track inventory.<br>When they told her QuickBooks, she advised them to come back after they had a real accounting system, and suggested SAP. They are now my happiest customer, running SAP Business One. Unlike the big SAP, I can install a single user version, complete with conversion of master files from QB or another program, as well as training and expert implementation, for $15K. We normally make back a company's investment in software within a year or two.<br><br>I don't want you to take this as spam, or an ad, s I won't include my company name or web site, but if anyone really wanted to find my company, they could do a Google search for "Business One Tulsa". While QB seems to be fantastic for very small operations, and to get your feet wet with accounting, as a reseller of SAP Business One, I see the disastrous results of companies using QuickBooks. The lack of a true audit trail and the ability to go back and edit data is a big problem. The finite limit of transactions sends a lot of new customers my way.

When one company approached their bank recently and asked for a $5MM revolving line of credit using inventory for collateral, the banker asked what they used to track inventory.
When they told her QuickBooks, she advised them to come back after they had a real accounting system, and suggested SAP. They are now my happiest customer, running SAP Business One. Unlike the big SAP, I can install a single user version, complete with conversion of master files from QB or another program, as well as training and expert implementation, for $15K. We normally make back a company's investment in software within a year or two.

I don't want you to take this as spam, or an ad, s I won't include my company name or web site, but if anyone really wanted to find my company, they could do a Google search for “Business One Tulsa”.

]]> By: scottshapiro http://mvmpartners.com/blog/?p=156&cpage=1#comment-2271 scottshapiro Wed, 15 Apr 2009 20:27:24 +0000 http://mvmpartners.com/blog/?p=156#comment-2271 Good call on the Intuit forums and thanks again for your advice. Good call on the Intuit forums and thanks again for your advice.

]]> By: Macy http://mvmpartners.com/blog/?p=156&cpage=1#comment-2270 Macy Wed, 15 Apr 2009 20:23:55 +0000 http://mvmpartners.com/blog/?p=156#comment-2270 Nothing specific Scott. My experience with guides is I click with some authors and not with others. If you can get to a large book store like Borders, pick an accounting process and see which book explains it best to you. If you have some accounting skill, any used book on QuickBooks will explain the QuickBooks way of accounting. It may not have the latest features but it will get you started. At the Intuit web site, there are forums that you can search or post questions. Nothing specific Scott. My experience with guides is I click with some authors and not with others. If you can get to a large book store like Borders, pick an accounting process and see which book explains it best to you. If you have some accounting skill, any used book on QuickBooks will explain the QuickBooks way of accounting. It may not have the latest features but it will get you started. At the Intuit web site, there are forums that you can search or post questions.

]]> By: scottshapiro http://mvmpartners.com/blog/?p=156&cpage=1#comment-2269 scottshapiro Wed, 15 Apr 2009 19:25:25 +0000 http://mvmpartners.com/blog/?p=156#comment-2269 Macy, thanks for the tips. Any suggestions on specific Quickbooks guides? Macy, thanks for the tips. Any suggestions on specific Quickbooks guides?

]]> By: Macy http://mvmpartners.com/blog/?p=156&cpage=1#comment-2268 Macy Wed, 15 Apr 2009 14:29:18 +0000 http://mvmpartners.com/blog/?p=156#comment-2268 Matt, Lots of good advice for the new business. QuickBooks has its faults but of all the small business accounting software, it is my recommendation. A used basic accounting text will give you the needed basics. In addition to being able to talk with "higher ups", you need to know if the people you hire are competent. QuickBooks is designed to be accrual basis but it toggles easily for cash basis reports. <br><br>As a CPA, the two most common problems I see are understanding customer payments & bank deposits and Opening Balance Equity. Invest in a QuickBooks guide. Again, a used one will be satisfactory for understanding how QuickBooks works. Matt, Lots of good advice for the new business. QuickBooks has its faults but of all the small business accounting software, it is my recommendation. A used basic accounting text will give you the needed basics. In addition to being able to talk with “higher ups”, you need to know if the people you hire are competent. QuickBooks is designed to be accrual basis but it toggles easily for cash basis reports.

As a CPA, the two most common problems I see are understanding customer payments & bank deposits and Opening Balance Equity. Invest in a QuickBooks guide. Again, a used one will be satisfactory for understanding how QuickBooks works.

]]> By: scottshapiro http://mvmpartners.com/blog/?p=156&cpage=1#comment-2265 scottshapiro Sat, 11 Apr 2009 16:59:23 +0000 http://mvmpartners.com/blog/?p=156#comment-2265 Thanks, Matt. I like the oxygen analogy. <br><br>Anybody know of a good accounting primer for a technical founder? Thanks, Matt. I like the oxygen analogy.

Anybody know of a good accounting primer for a technical founder?

]]> By: MattCope http://mvmpartners.com/blog/?p=156&cpage=1#comment-2264 MattCope Sat, 11 Apr 2009 14:19:04 +0000 http://mvmpartners.com/blog/?p=156#comment-2264 Great post - accounting may not be sexy, but neither is oxygen.<br>The "talking over your head" point is right on the money. If the founder doesn't make it a priority to educate him/herself about how funds have flowed and will flow through the company, control of strategy can be at risk.<br>As I see it, the accountant hat should be among the most important a founder wears. Great post – accounting may not be sexy, but neither is oxygen.
The “talking over your head” point is right on the money. If the founder doesn't make it a priority to educate him/herself about how funds have flowed and will flow through the company, control of strategy can be at risk.
As I see it, the accountant hat should be among the most important a founder wears.

]]> By: scottshapiro http://mvmpartners.com/blog/?p=156&cpage=1#comment-2263 scottshapiro Fri, 10 Apr 2009 14:57:27 +0000 http://mvmpartners.com/blog/?p=156#comment-2263 Scott, thanks so much for your thoughtful comment. Scott, thanks so much for your thoughtful comment.

]]> By: Scott Gregory http://mvmpartners.com/blog/?p=156&cpage=1#comment-2262 Scott Gregory Fri, 10 Apr 2009 10:12:15 +0000 http://mvmpartners.com/blog/?p=156#comment-2262 As a QuickBooks advisor, I often see the disastrous results of some businesses taking the "DIY" approach to their accounting software and systems. While they may believe "if I can write a check, I can use my software", the reality is much different.<br><br>In reality, the business may actually be penny-wise and pound foolish by not getting some expert insight during the setup phase. If they don't, they'll spend hundreds or thousands of dollars to their tax guy to unravel the mess.<br><br>In addition, I also see businesses falling into the same trap with their payroll. "DIY" payroll can truly be a disaster for businesses - there is no reason NOT to outsource that activity completely and focus on the core activities of the business instead.<br><br>Scott Gregory<br><a href="http://www.BetterBottomLine.com" rel="nofollow">www.BetterBottomLine.com</a> As a QuickBooks advisor, I often see the disastrous results of some businesses taking the “DIY” approach to their accounting software and systems. While they may believe “if I can write a check, I can use my software”, the reality is much different.

In reality, the business may actually be penny-wise and pound foolish by not getting some expert insight during the setup phase. If they don't, they'll spend hundreds or thousands of dollars to their tax guy to unravel the mess.

In addition, I also see businesses falling into the same trap with their payroll. “DIY” payroll can truly be a disaster for businesses – there is no reason NOT to outsource that activity completely and focus on the core activities of the business instead.

Scott Gregory
http://www.BetterBottomLine.com

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