5 Signs You're Outgrowing QuickBooks and It's Stunting Your Growth
Read time: 4 min.
Over the years, QuickBooks has become the standard financial and accounting software for fast-growing, small businesses. While it’s great for entry level accounting needs, the limitations of QuickBooks may be stunting your organization’s growth.
If your growing company is currently using QuickBooks and is concerned that the cons are outweighing the pros, read on to discover that you are not alone. Uncover the five reasons you may be outgrowing QuickBooks.
1. Real-Time Data is Difficult to Get Your Hands On
While QuickBooks was created at a time when data was needed at the end of each month, that’s not the case today. It’s crucial to know what’s happening within your business at all times and better reporting can take you from barely surviving to thriving and getting cash in the door faster. By having up-to-date data, you can access the information you need to better serve your customers.
If one or more of these sounds familiar within your organization, stepping up your reporting is in order.
- Time is being wasted hunting down spreadsheets.
- Errors in reporting are frequent and the general sense is that current reporting is unreliable.
- Reports take too long to run.
- A comprehensive view across the entire business is non-existent.
2. Entering and Reconciling Financial Data Only Happens Manually Across Systems
In today’s world, no one has time to sit around and wait for suppliers, customers, and business managers to manually pass on information between multiple systems. By the time the data gets to its final destination, it’s no longer relevant.
Automating manual processes can shorten the financial close process, among many other benefits. Check your business against these symptoms to see if it may be time to transition your organization away from QuickBooks:
- Sales orders, order entry, and invoicing are manually entered and paper-based.
- There’s no easy way to verify data is current, accurate, and reliable.
- Approval processes are slow and disjointed.
- Financial consolidation is time-consuming.
- Sales forecasting and budgeting processes rely on guesswork.
3. You’re Missing Out On Sales Opportunities
As technology continues to advance, we’ve been bread into a lifestyle of instant data at our fingertips. We expect to be able to see real-time stock levels, confirm delivery schedules at the same time we place an order, and the ability to contact customer service minutes after placing an order if we need to add an extra line item.
The above scenario is very unlikely with Quickbooks capabilities. Don’t miss these warning signs:
- Customer service fails due to a lack of up-to-date data.
- Inaccurate inventory reporting.
- Customers and vendors don’t have access to self-service information on your website.
- Nurture marketing and sales campaigns are non-existent, because of the inability to track customer information.
4. It’s More Efficient to Conduct Business Outside of QuickBooks
At this point, you already have a foot out the door – literally. QuickBooks may have been the system to get you started, which is exactly what it’s designed to do. As you continue to grow, it’s not going to be able to keep up with the pace of your business. The pressure of stronger security controls, better SKU management, or effective data management is too strong for QuickBooks.
You have reached the limits with QuickBooks if:
- Several different applications are needed to perform basic tasks.
- Processes that call for automation are done manually (and from spreadsheets).
- You’re behind on modern data management best practices.
5. You Have Multiple Technology Investments that Aren’t Paying Off
Technology is often purchased quickly and in pieces. This results in a mélange of different software solutions that manage different parts of the business. This leads to a lack of accurate visibility into important company data. This can cause many setbacks, including lost revenue. According to the International Data Corporation, businesses lose 20 to 30 percent in revenue each year due to inefficiencies.
A lack of confidence in current reporting tactics is unfortunately common. Reporting tools in a modern ERP system are easier to use – end users can respond to complex data requests more easily and without the having to put in a request with the IT department.
With the primary focus on managing a business, CFOs today strive to find “one source of truth” that provides the framework for all important business data.
Is it Time to Consider Cloud Financial Management?
It may be clear to you that you’ve outgrown Quickbooks. However, finding a replacement can be overwhelming. While some businesses are able to function with smaller, disparate programs in order to manage their operations, many learn they need a solution with full visibility into their business data, as well as reporting tools necessary to define key performance indicators, measure performance and plan for growth.
To evaluate if your organization is ready to switch to a cloud-based software here are some final things to consider:
- Your team internally doesn’t have the time or ability to maintain your current software and hardware.
- Backups, server failures, malware, and data security are constant worries.
- It often feels safer to just muddle along with existing systems then to upgrade.