The most successful entrepreneurs listen to the stories of the mistakes of other people, and then make sure that they do not make the mistake. By just listening, the most successful people in the business have a competitive advantage because they are avoiding the most common mistakes that everyone else makes. Below are 4 common fund accounting software mistakes that many small business owners make. Go through every one of them so you do not make the same in the future.
Failing to Schedule Back Ups
There are many small business, a even a few large ones, fail to realize the importance of performing system file backups. You might never have to backup your files, but if your system ever crashes, then you become aware of the importance of having a plan in space so your business continues to run smoothly.
Hiring unqualified accounting personnel
Your fund accounting software is not generating accurate expense reports, your budget to actual statement is not accurate, and there are figures in your financials that do not add up. You might be getting the story that there is a problem with the software, but you should also consider the fact that it just might be user error. Poor hiring decisions can plague small businesses because they are more costly than hiring an accounting professional who understands the industry and the fund accounting software that being used.
Many small business owners assume that employees can just figure out how to operate the fund accounting software. However, today’s accounting software programs are complex and powerful applications, that even working with easy to use programs can frustrate employees if they do not have resources where they can fall back.
Most accounting companies produce a new version of their software every year. Data compatibility conflicts occur when the accounting software is not upgraded often enough. For example, waiting five or six years to upgrade the accounting software invites these kinds of problems. In some cases, data might become inaccessible or corrupted if upgrading the fund accounting software is not performed.