Why QuickBooks Is Not a Business Tool
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
@dashrender said in Why QuickBooks Is Not a Business Tool:
Why do they need to be in that town? Can't you use an accountant who lives in NYC? not that you want to, fees would be to high.
My point is even in a town of 20,000 people, it's not easy to find an accountant not using QuickBooks. They are the 800lb gorilla.
I don't believe this is possible. But more importantly, it doesn't matter in the slightest.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
They are the 800lb gorilla.
Of hobby shops and "wife tax shelter" businesses, yes. Not of actual business. Like we've pointed out, no real business CAN use QB. Maybe some farms can, that's about the biggest that a business could be and still find a way to function on it.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
I've talked to six accountants that were recommended by other professionals and they all insist on it.
ANd you consider those other people "professionals"? Why? What made those six people good references if they are using QB?
I have a feeling you are self selecting your answers. You use QB, you talk to people who use QB, you select a town that uses QB.... some combination of those things might be leading you to more QB answers. If you switch to Xero, talk to actual businesses rather than professionals (a professional person is not the same as a business, very different things, businesses hire professionals, professionals often work in businesses, but a professional's personal non-business accounting does not reflect good business practice.)
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@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
ANd you consider those other people "professionals"? Why? What made those six people good references if they are using QB?
I have a feeling you are self selecting your answers. You use QB, you talk to people who use QB, you select a town that uses QB.... some combination of those things might be leading you to more QB answers. If you switch to Xero, talk to actual businesses rather than professionals (a professional person is not the same as a business, very different things, businesses hire professionals, professionals often work in businesses, but a professional's personal non-business accounting does not reflect good business practice.)You're right. I must be talking to the wrong people. Who is NTG's accountant and who did they have before that?
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There are two key things to understand about accountants here:
- Competent accountants work with what is needed for their clients, the accountant no more dictates the accounting software that you use based on their needs, they work with what is dictated by your needs. If they don't, they aren't a competent accountant.
- Competent accountants should know that QB is dangerous and not financially sensible. They should not want to use it or recommend it. Willing to use it, sure. But pushing it would be a level of incompetent or unethical (depending on motivation) so extreme that even non-accountants can see it clearly as a problem.
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Using QB is like saying that you can't get IT because the two IT shops within a few blocks of your home only use Windows XP Home for everything, don't believe in servers, and can't do anything needed for a business. But you'll only use them because six people recommended them - most likely based on the same fact that they are the only local options. Then calling them competent when clearly, even to non-IT people, they aren't even remotely competent doesn't make sense; nor does choosing to use them just because they are local.
If great people are local, great. If they are not, who cares? Accounting, like IT, has no advantage to being local to you. But getting accounting right, just like getting IT right, is critical for your business.
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If you really believe that not a single business class accountant exists in the entire city of Auburn, you've identified an enormous business opportunity.
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@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
If you really believe that not a single business class accountant exists in the entire city of Auburn, you've identified an enormous business opportunity.
Assuming you can convince the locals that you're that much better than those non competent ones.
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@dashrender said in Why QuickBooks Is Not a Business Tool:
@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
If you really believe that not a single business class accountant exists in the entire city of Auburn, you've identified an enormous business opportunity.
Assuming you can convince the locals that you're that much better than those non competent ones.
Right, it sounds like there is an assumed culture of incompetence. This can be a trend in small, insular communities. Someone starts saying "it's different here" or "we aren't big enough" or "local matters more than quality" and bad things can start to happen. Soon people stop considering themselves to be real businesses or real professionals and start acting differently. Things that would be instantly not accepted in other settings become common place.
For example, six people recommended accountants that, apparently, I'd not consider minimally competent. Yet in Auburn, six professionals didn't just say that they were functional, but actually recommended them. The standards for competence and professionalism are totally different. A city of 20,000 with a lower bar for the entire city than a village of 4,500 just three hours away has. But the difference might be that a small town is small enough that they feel that they have to compete based on quality as people are used to considering going non-local. Auburn is just big enough to have that "local is more important than professionalism" feeling, but too small to get any professional services itself.
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Ithaca does something similar, they are the most extreme "do everything local" town in NY. But, Ithaca is 35K in the city and extremely highly educated, and 90K+ in the metro. So while it has the local effect to an extreme, it is able to temper it with 200-500% greater size, 20-50% higher average income and a white collar based market rather than a blue collar one.
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@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
Accounting, like IT, has no advantage to being local to you. But getting accounting right, just like getting IT right, is critical for your business.
I disagree with this. I have a great business going because I focus on a geographic area. Most of my clients are with 5 minutes of each other. I offer no per trip charges or mileage charges. My business is growing at the rate I want it to. I can charge what the guys from cities an hour away charge and clients still choose me because it costs less for them when they don't have to pay for mileage. It's also very easy to socially network a geographic area and pick up new clients that way.
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Why does some schools still teaches QuickBooks? Is it even worth it teaching students how to use QuickBooks any of the alternatives?
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Whereas in Perry, town of 4,500, there is zero "do it local" effect and people will go to big cities hours away without thinking twice for services. So local accountants, banks or whatever have to compete by offering the same professionalism and quality that Buffalo offers in order to get any customers. So even thought they are small, and 100% blue collar / farming based they have extremely high end business services across the board with more than just one firm offering more than all of the city of Auburn seems to offer.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
Accounting, like IT, has no advantage to being local to you. But getting accounting right, just like getting IT right, is critical for your business.
I disagree with this. I have a great business going because I focus on a geographic area. Most of my clients are with 5 minutes of each other. I offer no per trip charges or mileage charges. My business is growing at the rate I want it to. I can charge what the guys from cities an hour away charge and clients still choose me because it costs less for them when they don't have to pay for mileage. It's also very easy to socially network a geographic area and pick up new clients that way.
Why are you driving at all? Unless a device is offline.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
Accounting, like IT, has no advantage to being local to you. But getting accounting right, just like getting IT right, is critical for your business.
I disagree with this. I have a great business going because I focus on a geographic area.
Right, it's great for the PROVIDER because it is bad for the customer. A local provider charges more and delivers less because the customer feels compelled to stay local. They will pay a premium for this and will get less for it. Just as you are with your accountant. Your accountant is doing GREAT because as the customer, you are willing to get screwed to work with them. You have to be paying too much, and you know you are getting too little. Yet your emotional ties to working locally regardless of the quality or competence forces you to sacrifice your own business to donate to your accountant - because you feel that their locality trumps their quality.
This is also known as the "church effect." Studies show that the worst business arrangements are made at church. Why? Because the customers feel like they can't complain and should pay a premium and shouldn't expect the best work. They hire people out of guilt, pity or duty - not because they selected them on quality or reputation. The provider knows that there is no competition and has no incentive to do a good job.
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@dashrender said in Why QuickBooks Is Not a Business Tool:
Why are you driving at all? Unless a device is offline.
To prevent my job from getting shipped to India... When a computer doesn't boot, or one boots and then immediately blue screens like happened today, we send someone. Clients are willing to pay a premium for this. I also recycle their old gear. I noticed that other companies don't do that and clients don't know how to destroy drives or handle Ewaste.
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@black3dynamite said in Why QuickBooks Is Not a Business Tool:
Why does some schools still teaches QuickBooks? Is it even worth it teaching students how to use QuickBooks any of the alternatives?
Was it ever worth teaching? Any competent accountant can use anything. Teaching a TOOL is just silly. Even accountant schools - other than "something" needs to be taught just to be able to learn on. But no one but accountants should ever see QB, and accounts should only see it for the purpose of supporting businesses that refuse to convert.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
@dashrender said in Why QuickBooks Is Not a Business Tool:
Why are you driving at all? Unless a device is offline.
To prevent my job from getting shipped to India... When a computer doesn't boot, or one boots and then immediately blue screens like happened today, we send someone. Clients are willing to pay a premium for this.
That's "unless a device is offline", though.
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@mike-davis said in Why QuickBooks Is Not a Business Tool:
Most of my clients are with 5 minutes of each other. I offer no per trip charges or mileage charges. My business is growing at the rate I want it to. I can charge what the guys from cities an hour away charge and clients still choose me because it costs less for them when they don't have to pay for mileage. It's also very easy to socially network a geographic area and pick up new clients that way.
None of this explains why THEY would choose YOU. It explains why you take them on as customers. I think you've missed the point. I know why the accountants in your town take on customers. What we don't understand is why any people decide to be their customers.
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@scottalanmiller said in Why QuickBooks Is Not a Business Tool:
A local provider charges more and delivers less because the customer feels compelled to stay local.
That's not true in my business. I'm charging less than the guys an hour away because when I do have to install something, I don't have to charge drive time and the client doesn't have to pay me drive time. In addition, I have come in behind some really incompetent providers. In those cases the client gets more and pays less.
