Accounting software is an integral part of any company’s infrastructure. However, this type of software does have its disadvantages. One thing to keep in mind is that, as a new technology, accounting software still has a lot of growing pains. These pains might be minor annoyances for most of us, but they can become significant problems for businesses that can’t find a way to avoid them.

While accounting software has drawbacks, it still makes sense for fast-growing businesses to employ one to save time on bookkeeping in the long run. (The best accounting solutions right now are Freshbooks and Sage)

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Here are the disadvantages of accounting software:

1. Accounting software costs money

While this isn’t always a disadvantage for companies, it is sometimes difficult to justify the cost of this type of technology. This is especially true if you have only a small number of transactions and need only basic functionality.

2. Accounting software can be buggy

There are many types of accounting software, and bugs can show up in different places and at different times. Most of the bug fixes are minor, but they can lead to things like double entries. This can be frustrating and even embarrassing for a company.

3. You can lose your data if there’s an accident

Computer problems happen, and sometimes all it takes is pushing one wrong button. It’s so easy to lose all of your hard work, or worse, lose your data altogether. It’s essential to create a backup plan in case this happens. However, sometimes it’s impossible to store information on the cloud and a crash occurs. If that happens, you’re in deep trouble and there’s not much anyone can do to save you.

4. Accounting software can be difficult to learn

Even if accounting software is user-friendly, it might take some time to learn how to use it. This can be frustrating for someone who is used to doing things a certain way and isn’t used to change. It can also be a problem if there’s not enough support available.

5. Accounting software can be expensive to update

Significant upgrades of accounting software are sometimes costly. Even minor upgrades can be pretty expensive, and if you have a small budget, this can present a considerable problem.

6. Sometimes accounting software can be a distraction

If you’re trying to run an efficient, organized business, then you should be able to stay focused on what you need to do. However, this can be difficult when there are so many new things to learn every day. This can be a severe problem if you don’t have the time or the resources for training.

7. Fraud is possible if you don’t have hard copies of the data

There’s a risk that fraud could occur if essential documents aren’t kept in a secure place. The key here is to make sure that you have data backups available if something happens to your hard drive. Since there’s little to no paper trail, it’s possible that you might overlook the fraud until it’s way too late.

8. You have to rely on a computer to do everything

You won’t be able to do anything if there’s a significant problem with the computer. You might have to wait for help, which could lead to severe consequences. If you’re used to doing things manually, then this can be frustrating.

9. You need to be computer savvy to use it

While many software programs are user-friendly, they are built on a foundation of technology that might feel foreign to some people. Even the most easy-to-use software requires a certain level of computer literacy. You’re going to need to understand how computers work and what you’re doing with them.

10. You will need to enter data, in the same way, every time, which becomes tedious and boring after a while

Data entry is one of those mind-numbing jobs that can quickly drain you of all of your energy. You can easily find yourself spending all day long entering information into your accounting software that will leave you feeling like a zombie. It’s not as strenuous as working on a farm, but it can be mentally draining.

11. Your data will not be private because the software company has access to it

If your information is stored on the cloud, that means anyone can have access to it. That means the company you buy the software through and any hackers who might find their way into the cloud. Even if there is no risk of any hacking, you have to wonder what rights you have as a consumer regarding the data you’ve provided. Most companies won’t use your data in any way that you’re not aware of, but it’s a good idea to read the fine print.

12. Customer service can take forever to get back to you

If you use a lesser-known account software, who knows how long it will take them to get back to you. Who has time for that when you have a problem that’s stopping you from doing your work now? The hope always is that somehow you’ll find the information you’re looking for online. If not, you are at the mercy of a company that can take an incredible amount of time to get back to you.

Conclusion

There are disadvantages to everything, and accounting software is no different. If you’re a small business owner, you might not have the luxury of using software for accounting. However, if your company gets bigger and starts to grow, it might be time to consider what accounting software can help you run things more efficiently and accurately. You may find that the software can do what you need it to do or may not. It’s entirely up to you to decide whether or not it’s worth it to invest in accounting software.

It’s almost impossible these days to run a business without using accounting software. The best you can do is try to minimize the disadvantages to the best of your ability. As a small business owner, you’re always going to have to do more with less—the more work you can get done without accounting software, then the better. You might want to think long and hard about the advantages and disadvantages of using accounting software before you make your final decision.