The Right Tools: Sledgehammer or Screwdriver?

In a previous post I compared having an accountant or accounting firm do a business’ bookkeeping to using a sledgehammer to drive a drywall screw. It is overkill and is costly from the standpoint of an accounting firm’s rates alone

As a small business owner you don’t want to be throwing your money away needlessly. You’ve worked hard to earn it and you want to keep as much of it in your pocket as you can. Here’s where using the right tool for the job comes in.

Then again, what if you already have a box full of tools?

Imagine the quintessential “man cave”. The two-car garage decked out with a vehicle lift, workbenches and shelving units full of supplies like motor oil, coolant, spare oil and air filters, windshield washer fluid, rims with the winter tires, spare wiper blades and so on. The list is endless.

Now, how about the red tool box standing in the corner? Not the small one, you know, about 8 inches deep, by about 10 inches high and 18 inches long with a black handle on top, the nice chrome latch that locks and the handy tray that lifts out of the top when you open the lid. Nope. I mean the big double-decker one with the smooth, ball bearing drawers, the two side units, and the lovely static-free rubber mats inside to cradle the precious Craftsman wrenches, the Snap-On ratchet set, and the Campbell Hausfeld air tools.

Lots of guys have a tool chest like this. Not all of them know how to set up and use their compressor and pneumatic tools properly. As a matter of fact, some of them don’t know their slot from their Phillips from their Robertson screwdrivers. These guys are the dangerous ones. Don’t let them *near* your car or house with spanners or a torch. They have the tools, but they aren’t mechanics, they haven’t been trained how to fix your car or upgrade your electrical service to 200 amp.

The same thing can be said for those small business owners who believe that if they go out and buy a copy of one of the “off the shelf accounting” software packages, and Mrs. Business Owner can balance the family’s chequebook, that she can do the bookkeeping. Or that anyone else can just because it is easy or they say they can, or worse yet the software company says *anyone* can do accounting. Mr. Business owner has a computer with an office suite installed, a PDF creator and reader, email client, maybe a drawing program and “Books-In-A-Box” with support and payroll. He has the Husky chest full of all the “right” tools, it should be easy… Right?

The simple truth is, it isn’t. Just like the plumber with his soldering torch, the mechanic with his socket set, or the carpenter with his saw and hammer, unless you have been properly trained you are more likely to cause expensive problems using a tool incorrectly and having to pay to have it fixed, than hiring the expert to do the work for you at the outset.

If you a business owner, this is my advice to you: do some research into the software available for your size and type of business. Go online, do a Google search on the software name and visit the publisher’s website. And then 1) compare their products including features AND pricing, 2) compare levels of support for the product, 3) compare apples to oranges, meaning program A to program X and finally 4) download a trial version of the program. There are a few, and you can either order online or in-store at your favourite office supply outlet, or online at the software company’s website. The three big ones in Canada for small business offer “find an expert” type of listings where you can enter your city and the website will do a search and provide you with a list of individuals in your area that are part of the publisher’s advisor programs. These are folks who take the time to maintain an annual membership and take the training courses. Two of the publishers even offer certification testing for their advisors. Take advantage of the free service and find an expert in the program you want to use.

Once you make an appointment to see an advisor, or see an advisor with each publisher, pick their brains. Let them know about your business, who your clients are, how you send your invoices, receive payments, pay your bills, what your sales levels are like, whether you are a service business or merchandising, do you maintain inventory, use LIFO, FIFO or average cost (IMPORTANT!), order supplies and materials JIT, have them drop shipped, have payroll and so on. The advisor can help you decide 1) if their program is the right one to use and 2) which version, whether it is a basic, pro, multi-user, multicurrency or even at the enterprise level. Inquire about third-party software that is available to add features to the programs.

When the decision is made, please, PLEASE, use the advisor to install, set up, configure and if you are changing software, MIGRATE your old data to your new system. If you want someone other than a professional bookkeeping service that has an advisor, or a trained bookkeeper on your staff to do your bookkeeping work, please, PLEASE, have the advisor train you and/or your staff on how to use the software properly. They can even help write a bookkeeping policy and procedure manual, and a guidebook on how to apply those policies and procedures using the software. This is WHY there are advisors, they are the EXPERTS.

Take advantage of the fact that the advisors are out there. They are the licensed mechanic to the Husky tool chest of your accounting program.