An article written by Kim Gélineau.

With the advent of cloud accounting solutions, business financial management has become more accessible and convenient than ever. However, it is essential to understand that even with the use of software from online accounting, pitfalls can occur and compromise the integrity of company data by giving users and your accountant a lot of hassle. To avoid the pitfalls of using these tools and to maintain clean and useful financial statements, we identified the 5 most common pitfalls to avoid. Read on to see our practical tips and limit the problems.

1. Wrong initial setup

Not taking the time to set up your accounting software can lead to data entry errors, categorization issues, and incorrect financial statements that can take many hours of work to be corrected by a professional. It's easy to believe that implementing software as widespread and accessible as Quickbooks online is easy to set up, but that's not quite the case.

Indeed, you need to know the subtleties of the software to properly start and migrate foreign currencies or to properly configure the tax module which, once installed, cannot be modified. There is also the use of credit cards in the banking module, which involves, for most users, a complete change of process. Therefore, it is always recommended to call on a professional in the implementation of cloud solutions in order to obtain the best possible result.

2. Lack of initial and continuing training

Use software from cloud accounting requires some training in order to exploit all the functionalities relevant to your business. Not investing in adequate training for yourself or for your team can lead to inefficient use of the software and errors that can take time and incur costs for professional corrections. Be sure to support your users with adequate training and technical support available at all times for optimal use of the software and a pleasant experience for all.

On the other hand, while cloud accounting software can be user-friendly, it's important to stay up to date on its features and best practices. Neglecting continuing education can prevent you from fully exploiting the system's capabilities and benefiting from improvements that could help you optimize your financial management. Stay up to date with software updates and participate in training courses to remain proficient in using the software.

We often see clients who did not want training come back a few months later to be supported in correcting errors that could be avoided by using the accounting system properly.

3. Neglect in the revision

Revision is a crucial step following the implementation of a brand new cloud solution, but it is often overlooked. New users tend to overlook this aspect, since implementing a new technology involves some automation and the user often has the impression that automation is infallible, which is not the case.

In fact, it is very important, especially following a change in the accounting system, to review the data. These are entered differently according to parameters and processes that may be completely different. Reviewing allows you to catch errors, but also to see inefficiencies and make the necessary adjustments.

4. Lack of internal controls

Even with a cloud-based accounting system, establishing internal controls is essential to avoid fraud, but also errors. It is highly recommended to separate tasks where possible, such as adding a process for approving sales invoices, purchase invoices, and vendor payments. It goes without saying that it is also very important to ensure that each user has their own access to the accounting system in order to be able to trace the course of a transaction if necessary. Of course, this type of access should never be shared.

5. Data entry error

While cloud-based accounting software can make data entry easier, it's important to remain vigilant in order to avoid mistakes. Incorrect entry of numbers, dates, or categories can compromise the accuracy of your financial statements. Take the time to check each entry carefully to ensure the accuracy of the data. In addition, ensure that users understand the system as a whole to properly enter data and adjust entries appropriately as needed.

In conclusion, it is very important to plan your system change well in order to keep accounting books, and not to neglect the help that a professional can give you in this adventure in order to get all the benefits without experiencing all the hassles!

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