Are you using QuickBooks and wondering if it’s the best choice for your business? Will it help you grow with better efficiency or slow you down with underpowered capabilities?
We work with companies every day that are deciding whether to stay with QuickBooks or to transition to another solution. We know this decision can be the difference between growing your business and putting on the brakes.
This guide will help you determine if QuickBooks is right for your business or if you should explore alternatives. We'll cover who QuickBooks is best suited for and the signs it might not be right for you. Then, we'll help you explore other options.
What businesses are a good fit for QuickBooks?
For what it is—basic accounting software —QuickBooks is a good fit for some businesses. It’s straightforward, affordable, and covers basic accounting needs.
Because QuickBooks uses a simplified set up, there is little difference between industries. This allows small businesses without accountants to use it.
QuickBooks works well for small and medium-sized businesses or solo business owners. It’s affordable, easy to use, and handles basic accounting and reporting. It’s best for companies with simple tasks and fewer than 25 users.
When QuickBooks isn’t enough: 6 signs you should look for
As your business grows, QuickBooks might not meet your needs anymore. Here are signs it may no longer work for you:
1. You need a better handle on your production and inventory.
Better inventory control and fewer out-of-stock issues improve customer service. You’ll need more than QuickBooks’s ability to track bins, lots, and serial numbers to do this. You need to be able to dig deeper into inventory valuation, manage complex product structures, and apply item class hierarchies.
2. You have multiple entities and/or a growing business.
Are you handling several businesses? Planning to expand or franchise? You’ll need to manage separate bookkeeping systems and pay for each using QuickBooks. You’ll struggle to get a unified look at your finances. QuickBooks isn’t designed to scale and can be underpowered for larger transaction volumes. You need advanced accounting features to maintain efficiency in a complex business structure.
3. You want deep analysis and detailed reporting of your business activities.
If you are (or want to be) a data-driven organization, you will need more than just running queries. It’s easy to generate a report in QuickBooks. But you can’t create visual dashboards to combine your key performance indicators (KPIs). Forecasting and decision-making will take more manual work outside of the software.
4. Your team is growing.
QuickBooks Online caps at 25 users even with an upgrade to the top tier. We’ve worked with a company that tried to share licenses to bypass this problem. This led to major inefficiencies for their employees. It also introduced increased security risks for the company because it became harder to know who was accessing and modifying information.
5. You have other systems you want to see in one spot.
You can prevent data silos and duplicate data entry when you can integrate systems. While QuickBooks Online Advanced has better integrations than other versions, it costs more. Even then, you may need more CRM and business analysis tools than what's available.
6. Technology keeps changing, and you want to change with it.
Accounting practices rarely change. And QuickBooks rarely innovates in other areas. You'll need to find a new solution if you want to use automation, get better revenue recognition, or use easier processes to close your books.
What to consider if QuickBooks isn’t right for your business
If your business has moved beyond what QuickBooks offers, you may need more than just a different accounting solution.
QuickBooks may have been the lower cost option when you started out. But if you’re using QuickBooks plus multiple other tools to get the work done, it’s wasting valuable time and resources.
Your business needs advanced tools for accounting, reporting, and compliance. And you need it all in one place. A modern enterprise resource planning (ERP) system can help future-proof your business, prime you for competitive advantage, and improve profitability.
Comparing QuickBooks to ERP systems
The table below compares the features, scalability, and costs of QuickBooks vs. an ERP system.
| Software | Best For |
Scalability | Key Features |
Cost Scale ($ - $$$$) |
| QuickBooks | Small to medium businesses and solo owners needing basic accounting | Low | Basic accounting, invoicing, expense tracking, payroll (add-on), inventory, and integrations |
$ - $$$ Affordable for small businesses but higher plans may cost more |
| ERP System | Small to large businesses with complex accounting, reporting, and compliance needs | High | Unified platform for accounting, inventory, eCommerce, and compliance |
$$$ - $$$$ More expensive but offers advanced tools |
Should you choose an ERP system instead of QuickBooks?
If the earlier indicators apply to your business, it’s time to consider more than just upgrading your accounting software.
A modern ERP system integrates all aspects of your business. Accounting, inventory, customer management, and eCommerce are all brought into one powerful platform.
Here’s how an ERP system outshines QuickBooks:
Scalability: Accommodates growth so your business can leverage opportunities as they happen.
Data-driven insights: Delivers real-time reporting and a complete view of your business activities for better decision-making.
Unified operations: Manages multiple entities and multi-currencies. From franchising to global operations, a modern ERP system can scale as needed.
Compliance: An ERP system can help with compliance with advanced reporting, documentation, accuracy, and process controls.
Security: Modern cloud ERPs, especially those requiring that security patches be applied as released, provide strong data security.
Collaboration: An ERP system connects your team with a single source for processes, information, and data. It’s a more efficient way to operate your business.
Integrations and configurations: Available APIs and third-party modules advance capabilities and align your operational areas. These allow you to enable niche functions for your specific industry.
FAQ: Answering common questions about QuickBooks and alternatives
This section addresses common questions businesses have about QuickBooks and its alternatives. If you're still unsure whether it's time to switch or what solution is right for you, these answers can provide clarity
1. What industries benefit most from QuickBooks alternatives?
Industries with stringent compliance requirements, such as healthcare, manufacturing, or finance, often need more robust systems. Retail, hospitality, or franchising businesses also benefit from alternatives that support multi-entity operations and detailed reporting. Any rapidly growing company will outpace what QuickBooks can offer.
We recently helped a B2C distribution company migrate from QuickBooks to an ERP solution. They went from not being able to see any inventory in stock to knowing their exact inventory in real time. Not only that, they knew exactly where this inventory was in their warehouse because their new ERP solution included warehouse management system (WMS) capabilities.
2. Can I integrate QuickBooks with CRM or other tools?
QuickBooks offers some integration options. These are limited compared to ERP systems. Most ERP solutions integrate with tools like CRMs, inventory management, and eCommerce platforms.
3. What are the costs associated with upgrading to an ERP system?
ERP systems vary in price depending on the size of your business and the features you need. Those initial costs can also vary depending on your provider. They can be significant if you choose a platform with upfront implementation fees. The long-term ROI in efficiency, scalability, and compliance often outweighs these expenses.
See what you can expect to pay for an ERP system.
4. How can I decide if I need an ERP system or another QuickBooks alternative?
Start by evaluating your pain points: Is it scalability, compliance, or integration? If your needs are complex and future growth is a priority, an ERP system is likely the best choice. For simpler needs, tools like Xero or FreshBooks may suffice.
Moving beyond QuickBooks
QuickBooks can be a fantastic solution for small businesses. As long as its limitations don't hinder progress. Growth, compliance, and advanced reporting are a few areas where it falls short.
Recognizing your needs early is essential, whether it's volume, reporting, or scalability. Now that you know what to look for, you are better prepared to explore your options.
Want to learn more about how an ERP system goes beyond just accounting and can transform and future-proof your business?
Download our free eBook, The Hitchhiker’s Guide to ERP Platforms, for essential answers to the most common ERP software questions.