Home Tax Services Account Services Account Software Financial Services Aboutt S&K



14016-D Sullyfield Circle
Chantilly, VA 20151
 
T: 703.802.2309
F: 703.802.2306
 
swaters@skcpas.com

Why our most successful clients use Peachtree Accounting Software

by admin 9. July 2010 10:01

Why our most successful clients use Peachtree Accounting Software?

When we review the list of our most profitable and financially successful clients, one striking constant emerges. Most of them are using Peachtree Accounting Software products. That doesn’t mean all of our really successful clients are using Peachtree, but the majority are. I have been curious about this for a number of years and recently set out to determine why these clients are using Peachtree as opposed to QuickBooks. I wanted to come up with a common set of characteristics across these clients that led them to choose Peachtree over QuickBooks.

First a couple of examples...

Client #1 – electrical contractor $6 to $10 million revenue per year with 10% of revenue in net profit annually. They are using Peachtree Premium for Construction.

The owner of this company runs the business according to a very strict financial model. He expects jobs to produce a 30% gross profit margin with 10% going to bottom line profit after overhead expenses. Clearly this is a profitable firm. Most of the accounting for this company is done by just one internal accountant.

They are using Peachtree Premium for Construction because it allows them to track costs for existing jobs as well as bid for future jobs based on the results from past jobs.

They also have an excellent grasp of their financial results because they are accurately able to track work in progress (WIP) in Peachtree. Their profit and loss statements truly reflect their financial results. They don’t have to wait until year end to determine their financial and tax status.

As their CPA, I am happy because I don’t have a lot of cleanup work to do at year end. I can also do mid-year income tax projections and help the owner look to the future.

Could they accomplish all of this with QuickBooks? Probably – but they aren’t, and I can’t think of any similarly successful clients in their industry using QuickBooks.

Client #2 – installation and service of large video and audio systems. They are using Peachtree Quantum.

The owner of this company is now semi-retired. He comes to the office about two days each week. His succession plan is well underway. The first thing to note is that they have a succession plan, and it is in progress and working. That is a pretty good definition of success. I hope I do as well in a few years.

Their business lives and dies in two areas – job costing and purchasing. Skilled technician labor is a large part of their business. In addition, they function in an industry where profit margins on equipment are extremely thin. Thus, effective purchasing is a key to their success.

They are using Peachtree Quantum for three main reasons. First, they process a huge amount of accounting data with about ten users using Peachtree regularly. Peachtree Quantum handles this data flow with ease.

Second, they are using Peachtree for its custom reporting capabilities with Crystal Reports. As with our first client above, they live and die with job costing. They have custom reports in a format their department managers can understand and use that give them detailed real time budget versus actual reports.

Third, they need the advanced inventory purchasing capabilities of Peachtree Quantum. They have multiple personnel in their purchasing department. Each needs to be able to see what has already been ordered and received for jobs. They can’t afford duplicate orders or pricing mistakes. They also have easy access to purchasing histories for individual items.

In this case, I don’t see how QuickBooks would adequately address these needs. I particularly do not believe even QuickBooks Enterprise Edition would handle the transaction volume and maintain the posting speeds of Peachtree Quantum.

What these and other successful clients have in common:

1. Their financial records are up to date. They pay less in accounting fees, because they make us do less work. They can look to the future. They are not slaves to recording the past.
2. They have clear business models and set operational objectives. They need accounting software that supports the measurement of their actual results against the objectives.
3. They have large volumes of financial and operational data to manage. They aren’t just managing a bank account, a few receivables, and a few payables. They need to do things way beyond printing invoices and checks. In some cases, they need advanced job costing. In some cases, they need advanced inventory and purchasing. In all cases, they need advanced accounting and reporting capabilities.
4. They have owners and managers who are able to delegate tasks to the appropriate organizational levels. They are growing and operating beyond the owners’ abilities to handle all of the tasks in the businesses by themselves.
5. The owners drive nice cars and live in nice houses. They work reasonable hours.

In short, these are real businesses with effective and successful owners. That sounds pretty good to me.

Thanks for reading!!
Frank

Tags:

TechTip | TaxTip



Tax Services  :   Accounting Services  :   Accounting Software  :   Financial Services  :   About S&K

Copyright © 2008, All Rights Reserved  |  Privacy Policy |   Sitemap |   Disclaimer

Phone: 703.802.2309
Fax:     703.802.2306