Outgrowing Quickbooks

Outgrowing Quickbooks

3 Signs That You’re Outgrowing QuickBooks

Your business is growing. Congratulations, growth is good! But with that growth you will likely be confronted with higher demands, new responsibilities, and a more complex financial situation.Quickbooks

You’ve built your business on QuickBooks, which is a great entry to mid-level accounting solution. But as your business grows, QuickBooks may not be able to keep up.

Are you wondering if QuickBooks still fits your business requirements?

Here are three signs that you’re outgrowing QuickBooks and need to step up to a more comprehensive system or service.

Managing your financial data seems more challenging than it should

We at Sousa & Weber see it all the time. Your business grows and your financial data becomes more complex to collect and analyze. Endless spreadsheets seem inefficient and aren’t giving you the insight you need to make good decisions. Your team is reactive instead of proactive.

When your financial data keeps you up all night and you feel that managing your business finances seems more time consuming than it should be, it is time to think about a more robust accounting solution.

You don’t gain the financial insight you need for your growing business

Automatic reconciliations like those offered in QuickBooks save time and reduce data errors. But as your business grows you need more in-depth insights about your finances than QuickBooks can provide. A sure sign that you’ve outgrown QuickBooks is when you have to manually combine cross-department or multiple business units’ financial reports to figure out cash flow, budget and forecasting projections, and profitability.

If your business requires only simple daily transactions, QuickBooks is probably sufficient. But if you require detailed revenue and expense tracking, you might want to consider a system or service that is a better fit for your company’s needs.

You notice a decline in QuickBooks performance

Most businesses experience problems with QuickBooks performance when the file size reaches 250 MB or when the total number of transactions exceeds 32,000.

Significant performance problems generally occur when any list exceeds 10,000. And does your accounting department consist of five or more employees? QuickBooks tends to become problematic at five users.

If you experience these problems, you might want to move to a more comprehensive system or outsource your bookkeeping/accounting functions all together.

Comprehensive doesn’t have to mean complex

QuickBooks is one of the best, easy-to-learn and most affordable accounting systems for small businesses. But as your business grows you may find yourself being confronted with some of QuickBooks’ limitations.

Well before you get hamstrung by your accounting software, we highly recommend that you explore options that will work for you down the road. You want to transition before your current system starts to fail.

Yes, the transition may be time-consuming and a little bit uncomfortable, but we at Sousa & Weber have the experience and the knowledge to find the right system for your needs and to help you with a smooth and painless implementation.

We also have a Business Services staff who will act as your “in-house” bookkeeping department. Outsourcing bookkeeping and other accounting functions is very logical and cost effective.

Contact Sousa & Weber to discuss all of your bookkeeping options because the last thing you want to stop you from successfully growing your business is your accounting system.

Sousa & Weber, LLP is a Los Angeles accounting, tax, and business advisory firm providing business management, extended bookkeeping, and business consulting services to individuals and companies.

By |2015-09-28T16:19:56+00:00September 28th, 2015|Accounting Tips, Business Consulting|Comments Off on Outgrowing Quickbooks
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