Don’t Let Your Software Be Your Downfall – Is QuickBooks Holding You Back?
A Cautionary Tale: The FTX Collapse
With the recent fall of a certain crypto company, investors, receivers, and congress have been shocked to discover how the multibillion-dollar company was running its finances and accounting. The Business Insider’s headlines the story, “FTX CEO’s bewilderment that company used QuickBooks for its accounting echoes a scene in ‘Breaking Bad’”. Meanwhile Forbes sums up the entire situation with, “In a scathing court filing on Thursday, John J. Ray III, the newly appointed CEO of failed crypto exchange FTX, said that he’d never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”
Hoping Isn’t a Strategy
Simply hoping that your accounting system is accurate and adequate is no way to run a business. But many companies, small, medium, and large, seem to be crossing their fingers and hoping for the best. As the breaking news of the week shows, it’s not a good enough response. What software your business should be using depends entirely on the needs of your business. If your accounting needs are more complex than a ‘pay today and move on to tomorrow’, it’s time to rethink using just basic bookkeeping software or excel to run your business.
Why Construction Companies Need Specialized Software
For Construction Companies, when it comes to managing your financial and accounting needs, there are a host of added complexities such as certified payroll, inventory control, estimates, bids, build complications and so much more. Using software built specifically for the needs of Construction, like Sage 100 CON, Sage 300 CRE or Sage Intacct can not only ensure your business viability but make your job easier in the long run. These software solutions are specifically built to do the work for you. Instead of running around tracking things on paper, on different office computers, and across various Excel sheets, you can start inputting everything into a centralized system. With this shift, your software will file, compute, and report for you — while also ensuring you stay up to date on tax compliance, legal regulations, quality bookkeeping, and accurate bottom-line totals.
Can Using the Wrong Software Really Take Down Your Business?
The short answer, Yes.
As those investors in FTX have discovered, a company using inadequate software means there are inadequate checks and balances, a lack of accurate financial tracking, no clear investment history and a host of other accounting gaffs that not only bring down a business but destroys the lives of the people working for that business, investing in that business, and relying on that business.
Managing the associated financial and accounting pieces on excel or QuickBooks may feel like you are doing the right thing or at least doing something but using any software isn’t the solution. If you are using software that can’t keep up with the needs of your business, it’s as good as useless. There is no simpler way to put it but in the words of John J Ray, FTX;’s new CEO, “the company had no record-keeping whatsoever”.
Sage: The Right Choice for Construction Accounting
You can be sure that when you run Sage construction financial and accounting software, it is doing what it should do for your business.
For more information contact us today >>
Useful references:
– Sage 100 CON vs QuickBooks Video
– Sage Construction Software vs QuickBooks reference pdf
Feldman, A. (2022, November 29). With a new CEO, an adult has arrived to clean up the FTX Mess. Retrieved December 15, 2022, from https://www.forbes.com/sites/amyfeldman/2022/11/22/with-a-new-ceo-an-adult-has-arrived-to-clean-up-the-ftx-mess/?sh=362c92fb5bd9
Varanasi, L. FTX CEO’s bewilderment that company used QuickBooks for its accounting echoes a scene in ‘breaking bad’. Retrieved December 15, 2022, from https://www.businessinsider.com/ftx-ceo-said-company-used-quickbooks-like-scene-breaking-bad-2022-12
