Recently, the Armanino and the Cloud Accounting Institute issued a white paper QuickBooks to Cloud, which explores the question of when a company’s success signals it’s time to move beyond QuickBooks. Software-as-a-service (SaaS) food ordering company GrubHub, for example, provides a clear case that at a certain point in the growth cycle, QuickBooks simply can’t keep up. Here’s why many technology companies are turning to cloud accounting solutions:
- Excel is a Headache: One of the surest signs that you are ready to graduate from QuickBooks is that you have to dump everything into Excel to see what is going on in your company. When you were just starting out, it was enough, but now you need to perform analysis and reporting that Quickbooks just wasn’t designed for: multiple-currency transactions or complex revenue recognition calculations.
- Hidden Costs: Take the time to compare the total cost of your current QuickBooks set-up with some cloud accounting options. On the surface, QuickBooks is an inexpensive, out-of-the-box solution. That’s why many technology startups embrace it. But don’t be misled, because the cost of the software is just one consideration. Imagine an iceberg. Ask yourself how much of your QuickBooks’ cost is visible. What are your direct and indirect costs?
- Not Scalable for Growth: But, perhaps the most compelling argument is that if your firm has plans for an IPO or M&A in the future, it’s going to need a level of report generation, security and an audit trail that QuickBooks simply can’t deliver.