6 Signs You’ve Outgrown QuickBooks
If you use QuickBooks, you already know it is a great entry-level accounting system. In fact, in 2019 QuickBooks Online subscribers totaled 3.2 million in the US alone.
QuickBooks may still work for your small business, but if you have sights on expansion and growth, it will not accommodate your needs in the long-run. Here are some of the top reasons companies outgrow QuickBooks.
6 Signs You Have Outgrown QuickBooks
- Your team has to use other software, such as Excel to create additional reports.
If your business needs advanced reports that integrate information from multiple systems, you have outgrown QuickBooks. Limited reporting capability is a common issue for businesses using QuickBooks. This means they miss the bigger picture needed for effective planning, putting them at a disadvantage against competitors with advanced software.
- You spend way too much time reconciling and balancing books.
If you need more control tracking transactions, you have outgrown QuickBooks. While the software offers double entry accounting, it has weak audit trail capabilities. This lack of accounting entry validation leads to potential compliance challenges with tax filings and regulation reporting.
- You have to purge data for your system to work properly.
If your business is large enough that you have too much valuable data for the file size limits, you have outgrown QuickBooks. File size limits are problematic for businesses as they add customers, items and orders into the system, and data files become bigger. QuickBooks users that exceed file size limits experience system instability, and will only operate correctly when data is purged.
- Your company has grown to include multiple entities, so multi-company transactions must be entered manually.
If your business requires inter-company transactions and consolidation of financials, you have outgrown QuickBooks. Multi-company needs simply cannot be met with QuickBooks.
- You have multiple warehouses and cannot locate your inventory.
If your goods are stored in multiple warehouses, and you need to track inventory by location and view shipment orders, you have outgrown QuickBooks. Multi-warehouse needs are too complex for QuickBooks, and customer service suffers. QuickBooks is best for companies with one warehouse location.
- Your team has to compete for usage licenses and take turns to use the system.
If your staff has increased and accounting, inventory, purchasing and receiving teams cannot use the software simultaneously, not to mention, some team members will be denied licenses, you have outgrown QuickBooks. Limited user licenses are fine for businesses in the early phases of development, but as they staff up, QuickBooks simply can’t accommodate them.