Risks of Trusting QuickBooks in Your Business

Risks of Trusting QuickBooks In Your Business

QuickBooks is a quick – and easy – entry-level accounting system for small businesses to track their basic finances on. It works great until, suddenly, you realize you’ve outgrown the system and it’s creating a lot of time-intensive problems for your business. How do you determine you’ve reached that turning point before it’s too late and you’ve put your business at risk? Here are some red flags that QuickBooks is no longer supporting your business and it’s time to leverage a modern business ERP.

Your data is locked away in spreadsheets.

QuickBooks is costing your employees numerous hours each week on manual processes from creating invoices to spreadsheet data entry. Many businesses find themselves creating workarounds to make the system function for them, from Excel spreadsheets to track deferred revenue, accrued expenses and depreciation.

In modern ERP systems like Sage 100 ERP and NetSuite, payment schedule processes are automated, eliminating the risk of forgetting to enter a payment every month. Custom saved searches provide the ability to set and save the report views that you need.

 

Manual processes are leading to errors.

Manual data entry is extremely time-consuming and error-prone. With QuickBooks, you never know when an error is going to creep into your spreadsheet formulas rendering your data unreliable. This leaves month-end up to chance and often causes delays in revenue recognition. Businesses using QuickBooks often find that their data is very fragmented, across different systems and Excel files.

Modern ERP systems give employees access to the same system, with information updated in real-time, allowing leadership to make snap business decisions based on data they know is accurate.

 

Limited reporting and bad data are preventing informed decision-making.

Making smart, fast decisions is crucial in today’s business environment. As is forecasting and budgeting – which business leaders cannot do without accurate data. Disjointed systems and error-prone data entry make it impossible to gain accurate insights into your business.

 

The reporting in QuickBooks takes workarounds to make the existing reports work for your goals – it’s critically limited for providing valuable insights and informed decision-making.

 

A modern ERP like Sage 100 or NetSuite eliminates the manual work of QuickBooks and provides the reports you need to make informed decisions about your business.

 

Audit concerns.

Due to insufficient internal controls around approval workflows, separate roles or audit logs, QuickBooks has audibility concerns. This could prevent you from taking the next big step in your business, whether it be a loan from the bank, are pursuing funds from investors, or are considering going public. You need a solid set of numbers for all of these to happen.

These are just a few of the of the red flags to watch for when using QuickBooks in your business. If you are experiencing any of these limitations, you’re putting your business at risk and it’s time to leverage a modern ERP like Sage 100 or NetSuite.

QuickBooks was never meant for a fast-growth or innovative company – once your business starts experiencing growth, you need a more robust system that scales with your growth. Interested in more ways that QuickBooks might be holding you back?

If you’d like to learn more about what leveraging a modern ERP system like NetSuite or Sage 100 looks like for your business, Schedule A Free Analysis.

Related Articles:

The New Business Reality: Modern Business Management Software

5 Red Flags That QuickBooks Isn’t Working for Your Business

Why QuickBooks Is Failing Your Business

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