For many small and mid-sized businesses, Intuit QuickBooks is usually the first choice for financial software in the organization’s early days – and for good reasons. QuickBooks is well-known and very easy to use, and it offers the basic functionality that almost any business can use to get off the ground. Unfortunately, virtually every growing business also soon realizes that the early value of the software is soon overtaken by the limitations and compromises. Here are the five limitations that cause CFOs to look for an alternative.
1.Over-Reliance of Spreadsheets to Support Financial Processes and Reporting
“After spending over one week sifting through massive spreadsheets, we discovered that we have a calculation error in how we had been recognizing revenue for the past three years.” Sound familiar? Hopefully not – but many organizations naturally and gradually develop sophisticated accounting requirements (such as revenue recognition and multi-entity consolidation). And if QuickBooks is the financial foundation, that often means cumbersome workarounds because QuickBooks doesn’t provide the built-in capabilities for these complex processes. •Are you exporting data to multiple spreadsheets? •Are you creating additional journal entries each month? •Have you created home-grown applications for recording revenue or expenses outside of QuickBooks? These workarounds lead to entry errors, incorrect or outdated data, process inefficiencies, wasted time and resources, and a lack of control and compliance.
2.Excess Manual Data Entry and Re-Entry
“How do I import customer order data into QuickBooks? I currently spend many hours manually creating invoices in QuickBooks, and there should be a better way.” Most companies don’t integrate QuickBooks with other key business applications, opting instead to just manually integrate the systems (think: flat files, CSV dumps, and rekeying). That might suffice when volumes are small. But ask anyone who’s endured these workarounds and you’ll see it’s a real productivity killer as the business grows. Who has time to manually research, re-enter, and verify data that’s already captured elsewhere? Instead of automating your business, these manual integrations are invitations to errors and wasted time.
3.Limited Access to Reports and Information to Drive Decision-Making
“Rather than constantly struggling to keep up with incoming requests for data and specific reports, Sage Intacct lets us consistently report financials in a timely manner and feel confident that we can easily respond to any new request. Real-time visibility into business metrics is essential for timely decisions that boost performance. QuickBooks offers canned reports – and no dashboards –so your visibility is limited and you’re often forced to make decisions based on outdated data. By leveraging a financial system that incorporates both a multi-dimensional general ledger and report writer, you can transform your analysis and become a strategic partner who generates insights that answer the bigger questions facing management.
4.Difficulty in Adapting to New Business Requirements
“QuickBooks continues to crash, and I lose all our payroll data. I don’t have time to re-enter data for 350 hourly employees…” Maybe you’ve seen a couple of the classic signs that you’ve outgrown QuickBooks. Those menus and screens – that used to be so quick and responsive – now have lengthy delays as the system struggles to keep up with data volume and calculations intensity. Report-printing takes forever. And queries seem to dim the lights. This critical limitation is risky at best. It can force you to periodically shut down QuickBooks – just to maintain data files. In a worst-case scenario, you’re looking at potentially disastrous results: system crashes and the loss of crucial data. That’s no way to run a business.
5.Inadequate Controls Around Financial Processes
“Errors caused by manual processes and a lack of control resulted in $180,000 of improper expense reimbursements within a six-month period.”
Manual process are a fact of life with QuickBooks. Unfortunately, they increase the probability of data duplication and data entry errors, making it difficult to gain an integrated, real-time financial view of a company’s end-to-end operations. Despite its popularity as a business applications for small business, QuickBooks simply wasn’t designed for growing organizations that need advanced functionality for manage sophisticated processes. The Next Wave of Financial Management Technology We’ve helped many businesses make the move from QuickBooks to Sage Intacct. The companies now enjoy real-time data and processes, flexible reporting, and role-based dashboards. We’ve helped organizations increase productivity through accounting automation, extensive integration and user-defined workflows. And, these companies can scale with Sage Intacct – as the business grows they can increase transaction volume and easily add new entities. Give us a call or shoot us an email if you’d like to explore Sage Intacct as your future financial accounting solution.