These days, there are countless accounting software to choose from. How do you know which one to choose? QuickBooks is probably the most well-known and widely used among small businesses (and for good reason). It’s one of the best out there for the price point, and it’s easy to use. Most accounting professionals have been trained on it and already know how to use it, whereas they may have to spend time familiarizing themselves with a different one. QuickBooks has been around for a long time and has resolved most of the issues, so it has good usability.
At the entry level, there are a lot of alternatives to QuickBooks now. Some examples include FreshBooks, Wave, Zoho and Xero. At the entry level, there’s not a huge difference in quality of product. However, many companies still opt to use QuickBooks for the reasons listed above.
It’s time to upgrade accounting systems when your business becomes too large or complex for the entry-level systems.
Many businesses eventually recognize a unique accounting need that a smaller accounting system no longer meets. This could be a business with high inventory transactions, in which case Sage Intacct or NetSuite may be a better solution. Another reason you may need a more complex accounting system is if you have modules in your accounting system that need to relate and speak to each other, in which Xledger could be a good solution.
Your business may also outgrow an entry-level accounting software once it reaches a certain size. Your company may have multiple divisions and locations, and it is important to look at your data from different angles. Entry-level accounting software such as QuickBooks are limited in its options to subcategorize that data, so you may have a need for a more rigorous accounting system.
Eventually, companies may become so large and complex that it becomes necessary to build out their own accounting software, in which case a company such as Oracle can specialize it for your business.
Upgrading accounting systems can be complex and expensive, so Sentinel Finance Group can perform a competitive analysis to help you decide which accounting system is best for you. Our competitive analyses assess your company’s needs, determine which software serves those needs, and create a report comparing strengths, weaknesses, and costs of the different options. We provide a neutral 3rd party professional perspective to ensure you make the right decision for your business. We can also provide guidance during the implementation of a new accounting system.
Sentinel Finance Group is an outsourced CFO firm in Kansas City and provides fractional CFO services and controller services to local businesses.
