![]() ![]() I my view what this whole software automation debate needs is less input from people who are infatuated with the technology and more from those with skills in psychology, marketing, sociology etc who can better explain how to convey its advantages to people so they actually want to use it.Double entry bookkeeping - What is double entry bookkeeping?ĭouble entry bookkeeping is a system of accounting in which every transaction has a corresponding positive and negative entry (debits and credits)īookkeeping can be simple with online accounting software like Debitoor. I have talked to a few firms out there, in the software automation space, and many admit the real issue is not the technology but people and the fact that they do not think like accountants. No logic here just the complexity of human behaviour. A good starting point is to do some research on all the consumer goods people buy that they never use, do not need and in many cases do not work - interestingly enough there is also good evidence that consumers often suspect a product probably will not work but they buy it anyway. There is overwhelming evidence that a great many people just do not respond to this type of thinking. The problems with all these arguments about how technology is going the turn everything on its head is that they are based on something all accountants tend to suffer from and that is we think the solution to everything is a dose logic and efficiency. When it comes to accounting the reasons for this are no doubt complex and varied but a short list might include: lack of trust job security fear of change being invested in the old system not wanting any responsibility and if it works don’t break it. The problem with new technology, however, is that all too often a lot of people do not want it. In fact I would even go as far to say that, in the accounting, auditing and tax space, software automation will be a game changer sooner rather than later. Contact us on – technology and software automation is a very big deal, no argument with that. So do you want to profitably do business with over 60% of Australian businesses? They do after all make up the majority of SMEs in this country. To do that you need to be able to do business with them profitably at the basic level and not consider them as outliers who are an imposition. You want them as part of your client base, they are after all in business, they have other needs, needs that you can help them with at a price. ![]() It is critical that accountants and bookkeepers keep these "restricted need" clients in the fold. At this point I fear that the major accounting ledger systems shareholders are organising their ninjas but stop I have more. but that doesn't mean you need to put them through a ledger. ![]() Ask them to keep every bank transaction, every receipt. Stop fighting with your clients about keeping ledgers and dealing with paperwork, get over it. You might now think I have something against accountants or bookkeepers but I don't. The answer is they need a BAS and a tax return and paying for anything more is just insane. But does Joe the butcher, baker, candlestick maker require such oversight. Etc, and so forth and granted that may not be enough for me to escape the categorisation of being an idiot.īut look, large businesses need computerised accounting systems, often custom made to cater for the management and monitoring of the various aspects of their business and for keeping performance measures on inventory, line productivity, return on investment in capital and so on. Twenty years in public accounting, tax agent, CPA, etc. Sadly for all those with invested capital or time in one of the new "you beaut" online accounting systems the answer is a resounding "NO". So here is a heretically question with all due respect to Father Paciolo: is double entry a necessary part of business administration? That's right you read it correctly. There is today a whole industry based on double entry accounting, Xero, MYOB, Intuit, billions of dollars of invested capital, thank you to the monk. There is now technology but they have just computerised Father Paciolo’s 36 chapter hard to maintain and vastly complex system aimed at keeping out the lesser educated populace and validating the occupation of highly priced and professionally wise “accountants”. Now you'd think that something that they came up with in 1494 has been supplanted by technology or science or better work practices. In his book, "Summa", Luca Paciolo wrote "we describe the method employed in Venice". In 1494 an Italian monk published a book on mathematics which included 36 chapters explaining double entry bookkeeping.
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