We often encounter a problem with new startup clients: Those clients haven’t been given access to QuickBooks by their previous accountant. And we’d like to remind you that you should check with your accountant and make sure you have access to your QuickBooks account.
Lack of QuickBooks Access Is A Red Flag
Here at Kruze, we’ve seen a lot of clients who come to us after dealing with a mediocre accountant. Very often, the client doesn’t know exactly what’s wrong, but they have a feeling that something is off with their accountant or within their accounts.
And most of the time, that accountant has conveniently forgotten or simply refused to give their client access to QuickBooks. This means the client has almost no idea about what’s going on in QuickBooks, which is clearly not ideal. This is your company’s data, and you should absolutely have access to it.
Major alarm bells are then set off when we encourage these clients to ask for access and those mediocre accountants push back. This denial of access might happen for a couple of reasons:
The accountant doesn’t want to be scrutinized. That person doesn’t want you to be able to check in and see what’s happening, which usually means they aren’t doing a very good job.
Some accountants may use this tactic as a customer retention tool. They believe that if you don’t have access to your data then you can’t leave them. It’s a weird approach and definitely a red flag.
Get Access To Your QuickBooks!
Whatever the reason, if your accountant is not giving you access to QuickBooks, change that today. Good accountants should be proud of their work. They should welcome both your questions and the opportunity to interact with you. In fact, our biggest problem at Kruze Consulting is not getting enough interaction with our clients because they are so darn busy building their startups! We want as much of that interaction as we can possibly get. If your accountant is restricting that your QuickBooks access and avoiding interacting with you, that could be a warning that something is off. The bottom line is, ask for access to your QuickBooks account!
Why QuickBooks is the Market Leader for Startup Accounting
QuickBooks’ position as the go-to solution for startup accounting is built on several pillars:
- Widespread Familiarity Among Professionals: One of the most significant advantages of QuickBooks is its universal acceptance and familiarity within the accounting community. Most accountants are well-versed in QuickBooks, which makes transitioning to a new accountant or firm seamless. If you ever need to switch providers or onboard a new accountant, there’s a high probability they’ll already be proficient in QuickBooks. This ease of transition ensures continuity and efficiency in your financial management, reducing the risk of errors or delays during transitions. This also makes it easier to have unified accounting and tax, since most professionals know how to use it.
- Ease of Access and Transparency: QuickBooks promotes transparency and user accessibility, which is vital for startups that need constant and thorough oversight of their finances. It encourages an open and collaborative financial management approach, which is crucial for the integrity and success of any growing business.
- Scalability and Customization: The software is highly scalable, catering to the evolving needs of startups. QuickBooks grows with your business, adjusting to its changing requirements without the need for a complete system overhaul.
- Decent Financial Reporting: Startups benefit from QuickBooks’ extensive reporting capabilities, essential for analyzing business performance, planning, and attracting investments. While it won’t give you everything you’ll need for vc due diligence, like churn reports, it’s got a lot of good, out of the box reporting baked in.
- Integration with Other Business Tools: The ability to integrate with various other tools streamlines operations, making QuickBooks a central hub for all financial activities.
- User-Friendly Interface: With an intuitive design, QuickBooks is accessible to users who may not have deep accounting knowledge, making it ideal for startups with limited accounting resources.
If you have any questions on startup investing, startup accounting, or taxes, please contact us. You can also follow our YouTube channel and our blog for information on accounting, finance, HR, and taxes for startups!