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Most small companies start off using QuickBooks as their main accounting system. So, let’s face it – QuickBooks is inexpensive and relatively easy to implement and learn. It is designed for very small companies that have unsophisticated operational processes and reporting requirements.
However, at some point as a small business starts to grow and the level of complexity of its projects and daily management increases, QuickBooks can become a burden to the business operations by slowing down processes, necessary reporting and month-end close. Here are five signs that your company has outgrown QuickBooks.
1) You use a lot of spreadsheets
One common theme we see is that companies that use Quickbooks are heavily relying on Excel to manage part of their business operations. This is costly and very often, inaccurate. You can learn more about the dangers of Excel in our blog article.
2) You are using several different packages and “bolting” them together
For most companies, Quickbooks can’t manage all of the operational requirements of the business. There are many third party software vendors that have developed add-on products that “integrate” with Quickbooks to fill the gaps. Very often these add-on packages have inferior user interfaces, and the integration is at risk of being broken by updates. Using these products is a band-aid approach, and will only take you so far in your efforts to streamlined your production processes.
3) You can’t get reports on a timely basis
Quickbooks has some standard reports that attempt to provide information needed by the typical business. In most cases these reports are not adequate, and you must use spreadsheets and manually re-enter relevant data or not get the reports you need at all. This lack of reporting capability creates duplicate processes that waste employee’s time and delay the ability for managers to get critical information about projects when needed.
4) Your employees are wasting time doing redundant data entry
The most valuable “asset” your company has is your employee’s time and any process or operational deficiency that causes duplicate data entry is costly. For example, if timesheets have to be entered into a payroll system, then again into a billing system (or Excel), and then again into spreadsheets to create management reports, you could be wasting 20 to 50% of their time, and the related salary and benefit costs.
5) You can’t get your job done
Finally, companies that use Quickbooks find that it becomes a huge bottleneck that slows down their ability to execute on projects, and effectively manage operations and financial processes. This can become an extremely frustrating situation for staff, which ultimately flows down to clients.
If any of these issues are apparent at your company, you may have already outgrown Quickbooks, and be feeling the pain both financially and operationally. Careful analysis of your processes, including looking where employees are engaging in duplicative and inefficient processes can help you determine if it is time to look at an integrated solutions which can position your firm for growth, and alleviate the stress caused by using software meant for smaller and simpler organizations.