At the time of its inception, QuickBooks was a dependable choice in helping companies get off the ground. The user-friendly financial software made it easy to understand why it was the preferred option for young companies. However, many businesses have now come to realize that their business is being limited by QuickBooks as their organizations grow.
A study from TechValidate reveals many issues that organizations faced while dealing with QuickBooks. From their responses, the top five limitations of QuickBooks are as follows:
- Over-reliance on spreadsheets to support financial process and reporting
Resorting to workarounds because your QuickBooks software can’t support the complex processes of your company’s finances leads to many more problems down the road. Using multiple spreadsheets to export data is an example of the inefficiencies that workarounds cause, which can result in erroneous data entries and an exhaustion of resources.
- Excess manual data entry and re-entry
Manual data entry is an immense waste of time and resources, especially when your software is supposed to be making your job easier. Integrating key business applications with QuickBooks is something that many companies fail to do. This means that as your business grows, you will be spending more time manually managing your data when it could be automatically analyzed.
- Limited access to reports and information to drive decision-making
When making timely decisions, it is imperative to have access to your business information. QuickBooks does not provide full visibility to your data in a time-convenient manner, so companies are forced to make decisions with outdated information.
- Difficulty in adapting to new business requirements
One of the biggest drawbacks for QuickBooks is its inability to efficiently adapt to changing business. The features that were usually so responsive are now clogged as you input more data, and this creates lengthy delays at the times when you need information fast. You may have to shut down QuickBooks in order to simply manage your files, which can have tragic consequences including losing important information.
- Inadequate controls around financial processes
Since it was originally designed to help small businesses manage their finances, QuickBooks does not effectively manage the processes that growing businesses acquire. Unfortunately, manual processes come hand in hand with QuickBooks, and it can restrict your financial view of day-to-day operations. This could pose significant risks to your business. For example, manual process errors and a lack of control “resulted in $180,000 of improper expense reimbursements within a six-month period” for QuickBooks users. In order to properly keep track of your finances, you should be able to view how the software manages your business information.
So let’s just make this clear: If you are still using QuickBooks, then you are being subjected to a variety of hidden costs that could hinder productivity in your business. Fortunately, cloud-based financial systems can resolve the issues mentioned above. If you are having issues with QuickBooks, maybe it’s time to consider an alternative solution that tailors to your business’s needs. Contact InCloud360 when you’re ready to make the switch.
The information in this post was retrieved from Sage Intacct’s whitepaper “Life After QuickBooks: Why it’s Time to Step Up to Sage Intacct for Business-Class Financial Software.” Please contact us if you would like a copy of the whitepaper.