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It seems with every release of new accounting software, developers attempt to one-up each other with more and more features. While more features can certainly be good in some aspects of financial software (summaries and reports, for instance), there is a law of diminishing returns. There is a tipping point at which point more features does not mean a better program, but a more cumbersome.
Why is 'less is more' valid when it comes to some aspects of accounting software? There should be as little interruption, when working with accounting software, as possible. The more bells and whistles there are, the more interruptions.
The most successful and usable financial software is that which strikes the perfect balance between many useful features and a sleek, easy-to-use interface.
PAYROLL AS AN EXAMPLE
It can be tempting to look to payroll as an aspect of accounting software in which more is better. "If we have as many features as possible in the payroll section of the accounting program," the argument goes, "then we will be able to be more efficient!"
This is far from the case. Generally, there are a few features that are necessary when it comes to payroll. Accounting software which deals with payroll should be able to print checks, automatically pay employees, do direct deposit, and take care of income tax withholding.
Software with more than those features tends to be past the point at which more features become useful. Beyond that point, though, the payroll section simply becomes confusing, difficult to navigate, and cumbersome.
If there are too many features in your accounting program, then it means that the developer likely spent more time focusing on nifty add-ons than on the actual structure and fundamentals of the accounting software. It is far better to have software that does a few things, but does them very well, than it is to have a jack-of-all-trades program that does many things in a mediocre manner.
Financial programs should not create more problems than they solve. Programs that are too complex tend to invent problems that were not even problems to begin with. When problems are created simply with the goal of solving them, then efficiency goes down the drain.
When shopping for accounting programs, keep in mind what you actually need in the program. Look for software that does an excellent job at what you need, and don't be impressed by features you didn't even know you needed in the first place. The bells-and-whistles approach of selling software is an excellent sales tactic, but it often does not benefit the consumer.
When you know what aspects and features on which to focus your energies when shopping for financial programs, you will pick a program that benefits you and your business. Treat the shopping process like you would treat the hiring process. If you want an employee with some predefined traits, it does not matter if he is classically trained in opera (unless, of course, you are looking for an opera singer).
Many people's initial reaction to implementing accounting software in a real way to their business is that they fear it will be simply one more difficult and specialized skill to learn. "Why," they ask, "do I have to learn accounting principles to use financial software? Isn't that what my accountant is for?"
Relax and feel better knowing that your fears are somewhat unfounded. Certainly, people that understand accounting will understand what accounting software does, but that does not mean that you need to understand what the software does to benefit from it. Most people are surprised to learn that using most accounting software really requires no special skill sets.
Granted, an accountant will have a much more thorough understanding of what the software is doing and the reports that it creates, but the actual use and imput of data requires no specialized accounting background.
Yes, it is very helpful and useful to understand these principles when using financial software. There is no doubt about that. However, to conflate that fact with 'accounting knowledge is essential' is not accurate, since good accounting programs will do the nitty-gritty work for you.
Case in point: If you are responsible for tracking the sales and invoices for your organization but have no special accounting training, software can be very beneficial. Most people that are comfortable working with computers can learn how to input invoices, close them out, and email them to customers. This requires no special accounting knowledge.
None of these tasks require a background in accounting. Any person with a general idea of how to use software can probably figure these things out and can most certainly be trained. While people with accounting backgrounds will be able to see these changes reflected on the general ledger and know what they mean, the bottom line is that for the end user in this case that information is neither necessary nor relevant for their job.
The unnecessary nature of accounting knowledge in successfully and efficiently using accounting programs is indicative in the format of most accounting software reviews. The average financial software review will not focus on the inner workings of accounting programs, just as the average car review does not focus on the inner workings of a car. The specialized knowledge is best left to the specialists in the field.
A quick look at accounting software reviews reinforces this point. The majority of them focus on usability, efficiency, and so on and avoid talking about complex accounting tasks since most software is not designed for advanced accounting professionals. While accounting professionals certainly use the software, manufacturers have to design their software to be usable by the people without those skills or risk severely limiting their target market.
The bottom line is that most accounting software is designed exactly for people who have minimal accounting knowledge as they are the ones that benefit the most from it.
None of this, however, is to say that accounting knowledge is useless when dealing with accounting programs. If you have the opportunity to fine-tune your accounting skills, then by all means, do so. Every little bit of knowledge helps when using accounting programs, but don't let the fact that it is useful knowledge to have be conflated in your mind with 'I must learn accounting knowledge to use accounting programs.'
Think of it like this: You don't need to know how to build a car to drive one, but understanding car mechanics and having the knowledge to fix your car when it breaks certainly makes owning and driving a car a much more enjoyable experience. The same can be said about accounting software.