Advantages and disadvantages of quickbooks accounting software

With the fast paced life that we have, it is not surprising to see the rise of accounting software. Quickbooks has been on top of the list as a preferred accounting software for a lot of businesses. It brings a lot of benefits to any business that needs to manage and control finances effectively. Here are some advantages and disadvantages

Quickbooks accounting software is the most popular accounting software package on the market. It’s targeted at small to medium sized businesses, but can be used by freelancers and even some large companies. However, as with anything in life, there are advantages and disadvantages of using Quickbooks that you should be aware of. In this post I’ll cover the advantages and disadvantages of Quickbooks accounting software so you can determine whether it’s right for you.

-Quickbooks is a very popular accounting software in the market today. It offers many advantages and disadvantages.

-It’s easy to use and has a wide range of features including payroll and inventory management that allow it to compete with other accounting software like Sage 50. However, its learning curve is steep and most users have had to consult with experts when first starting out with Quickbooks.

-Quickproducts is easy to use and has a wide range of features including payroll and inventory management that allow it to compete with other accounting software like Sage 50. However, its learning curve is steep and most users have had to consult with experts when first starting out with Quickbooks.

Quickbooks is a very powerful accounting software. It has many features that can help you manage your finances more effectively. However, it also has some disadvantages.

Advantages:

1) You can set up multiple accounts and track them separately. This way you can see how each of your accounts is doing individually.

2) You can set up a chart of accounts so that when you enter transactions into your company’s books, they get automatically categorized and stored in the right place. This makes it easier to find them later on if necessary.

3) Quickbooks has many templates available for purchase, so you don’t have to start from scratch when setting up new account types or entering transactions into your books.

Advantages and disadvantages of quickbooks accounting software

QuickBooks is one of the most popular small business accounting solutions in the market. Great for small businesses, QuickBooks provides an introductory accounting solution with certain packages offering basic inventory management tools. However, as with any system, there are pros and cons to choosing QuickBooks over other introductory solutions or more robust ERP software. While the survey in this post was conducted several years ago, based on additional research from more recent sources, a lot of the same pros and cons apply today. While the pictures below are from the original survey which looked to answer the questions “What users like about QuickBooks” and “What users do not like about QuickBooks” , I’ve added some more recent data about the pros and cons of QuickBooks.

One thing that you may have noticed, interestingly, is that some of the pros are the same as the cons. It appears that mileage varies greatly. However, in summary, here are the generally accepted pros and cons of QuickBooks.

Pros of QuickBooks:

  • Easy to use and learn
  • Integrates well with other systems and flexible with 3rd party applications
  • Provides good accounting reports
  • Affordable price
  • Easy to access from any device – phone, tablet and computer (depending on the version)
  • Easy to find and fix errors/mistakes
  • Easy to look-up customer information

Cons of QuickBooks:

  • Lack of industry and business-specific features (such as lot tracking, eCommerce and barcode scanning)
  • Lack of key reports outside of accounting
  • Instability/system crashes
  • Lack of direct professional support
  • File-size issues/limitations on number of transactions
  • Limitations on the number of users
  • Built with a “small business mindset”
  • Data is not always backed-up so you risk losing information
  • Lacks invoice design tools
  • Easy to find a fix errors/mistakes (which makes it easy for someone to manipulate your books)

Replace QuickBooks Guide: Grow Your Business With All-in-One ERP Software

Just about everyone would agree that QuickBooks is a great introductory system for new and very small businesses.  One of the most important considerations to make when starting a business is what (if any) software is required to manage the business. For the most part, the first software purchase is based around the need for managing accounting and financials, and in this situation QuickBooks is the logical choice.  It is only as your business grows and your requirements become more diverse than the limitations begin to show through. Let’s briefly explore the limitations of QuickBooks:

  • Limited reporting and transparency of your business health – lack of custom reports
  • Double entry and keying errors across systems and departments
  • Limitations with file size and data, as well as the number of users
  • Generic and impersonal support
  • A standalone application which lacks integration and automation between other systems

Still unsure as to whether or not to replace QuickBooks? For more information on QuickBooks pros and cons, read our post:  Top 5 Reasons to Replace QuickBooks.

QuickBook Limitations

Cons of QuickBooks: Inventory Management

Aside from the limitations listed above, QuickBooks tends to be particularly problematic when addressing robust inventory management concerns. If inventory management is crucial to your business, QuickBooks may fail to meet your needs. As a new business, simple tools like Excel and pen and paper may be adequate to manage inventory and the picking, packing, and shipping process.  However, as order volume starts to increase, the time will come to seek out an appropriate inventory management software package that includes integrated accounting, order entry, and processing tools and contact management etc., to replace QuickBooks.

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