Why Your POS Should NEVER Integrate with Your Accounting Software

13 Mar 2023 · 3 min

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2:51

Donna Genie (presenter) advises small businesses not to integrate point-of-sale (POS) or e-commerce systems directly with financial accounting software. She argues the two systems have different purposes—POS should handle item-level sales, inventory, and product analytics while accounting software should record aggregated revenues and expenses—and that syncing errors can contaminate accounting records. She recommends keeping the systems separate, reconciling monthly (including sales tax adjustments), and limiting income categories on financial statements to ~5–8 for clarity. The video ends with social/contact CTAs.

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March 13, 2023

donna@campgroundaccounting.com

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Do you have a point of sale system or some other e commerce system that you process your sales in something other than your financial accounting system? If you do, chances are you've looked into the possibility of integrating the two systems, so lining it up so that the sales flow from one system into your accounting system. I have dealt with a lot of integrations. I used to work in the programming side and looking at custom integrations, so I've got a lot of experience in that area and I'm going to offer you some advice. Please don't integrate them. Usually it creates more of a mess than it solves and each of those systems has a different purpose. Your point of sale system is meant to track which items you sell, track your inventory, track the cost versus the sale price, those types of statistics. Your financial accounting system doesn't need to duplicate that information. It should just simply be tracking the amount of income that you've received and all the expenses associated with it. So in a very simplistic case, and as most small businesses are going to have, I do not recommend integrating those two pieces of software. Each of them can stand alone. So allow your point of sale system to produce the information you need about what products are selling and how quickly they're selling. And allow your financial accounting system to do the job of recording the revenues that you receive as well as the expenses. You may have to make a once a month adjustment to include the sales tax or move that properly. Or if you want to do a once a month breakout on your financial statement, probably no more than five to eight categories in income. If you have much more than that, it really dilutes the effect of looking at the financial statement. So I don't recommend breaking it down into very tiny granular pieces that should be left for the point of sale system. So hope this helps you because if you get garbage into one system and it doesn't sync right, you'll be contaminating the other system. So do yourself a favor and don't worry about the integration. It's just not necessary. Have a great day.
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