Since the bookkeeping system is based on spreadsheet software and file management, without constantly doing an organizational check – this limits collaboration and can lead to versioning issues that lead to data loss. Versioning of documentation can be a major issue. Maintaining these types of servers also requires an expert in server maintenance and system architecture which can get quite expensive. Remote Access can become difficult with on-premises servers. Some of these systems also need a complete reconfiguration process when moving locations or even changing the IP of your internet. The data server and/or the backup could go down periodically or permanently without any sense of recovery. In addition, there are two major points of failure – the storage medium and the human being. And training up of new employees is not based on bookkeeping training, but how to work and continue to feed the beast that is the accounting management system. Now the company is stuck with a system that is too big to leave, where only a few people fully understand it. This was to make bookkeeping simple and easy. A Microsoft Access database hastily built and connected through a DMBS that can only be accessed on the local network, and the overall vision and mission is lost. Within a few years, the excel sheet becomes a Frankenstein, as it has different versions. Filed down to only the current year, it is being managed by someone with extensive experience, only to have that person leave and forget to put the instructions to make any changes. As new people join the team, and old people leave, the excel sheet or similar spreadsheet software, starts to become a mind of its own. They record the transaction into a big spreadsheet, that gets bigger and more complex with every year. Your employees are filing documents properly. This is what most companies end up doing. Online Bookkeeping Service Not Being Used They are slow to shift to new software or processes, due to the fact that it could be too expensive to change, or too risky due to filing reasons. In other cases, it could be a simple case that they believe their financials are so complex and the current system is working. In some cases and based on regulatory reasons, some businesses might have a need to keep physical documents and have the bookkeeping partially digitalized. Through all of this extensive use of paper, regardless of the environmental concerns, it still happens, and many companies still have some sort of physical presence with their documentation. The image comes up of a library of documents. Take a moment and imagine walls and walls of financial documents, receipts, expenses, invoices, etc. In addition, there are still those that do it manually and completely analog. There are so many moving parts to managing the day-to-day financials, it can be overwhelming. A true soldier in the management of company financial documents. The art of finding a great bookkeeping service in Canada is to make sure it is beyond organized. For those that are still doing accounting manually and paper-based… “Where is that document located?” is a common question that keeps popping up in the domain of bookkeeping.
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