Outgrowing QuickBooks? 3 Steps to Make the Process Less Painful

Outgrowing QuickBooks? Failure to Plan is Planning to Fail

It has been said the keys to overcoming resistance are understanding and attitude.  It has also been said in every challenge there is opportunity.  QuickBooks is an easy to use entry level accounting software, it makes sense to stretch it as far as it can go.  Why not resist change?  Changing accounting software is no small inexpensive task.  It is a huge undertaking and it is no wonder so many companies hold onto their QuickBooks as long as they can even though they know it is holding them back.  Fear of the unknown prevents us from making mistakes.  It can also prevent us from making critical decisions when the time is right.  Understanding when the time is right, having the right attitude and fortitude to lead your organization through the change are key.

If your QuickBooks is crashing because your transaction volume has increased, this is actually a good sign your company is growing.  Embrace this change and recognize the fact that your company may require a change to a new accounting system.  Perhaps your accounting team is growing and you need tighter security and audit control.  There are countless stories of embezzlement and QuickBooks.  It is unfortunate that some employees may be untrustworthy but it is a fact of life.  I remember one story of a company who lost over $400,000 in one year from a trusted employee and long time friend.  The company owner was devastated.  QuickBooks users with bad intentions have been known to change or delete previously recorded invoices.  This practice is easy to conceal.  For instance if a bookkeeper intercepts a customer payment they can deposit the funds in their own bank account and make the books look like the payment is there.  Since there is no difference between the amount in the bank account and the amount in the accounting record the income statement appears to be correct.  Mid-market level accounting systems like NetSuite, Sage 100 ERP, Sage 500 ERP and Microsoft Dynamics have much stronger audit controls and allow companies to assign separate duties and authorizations for access to different accounting information as your team grows so there is much less risk for theft. See also, How Do You Know If You Have Outgrown Your QuickBooks? 10 Warning Signs & a Solution.  While there is tighter security and more scalability with QuickBooks Enterprise, QuickBooks users may find they are ready to move up to the next level of ERP software.

If you are outgrowing QuickBooks and know you need to change there are several steps you can take to make the process less painful.

1. Do a thorough business proceess assessment 
2. Prepare a budget
3. Prepare a timeline for change

Performing a business process assessment allows your team to carefully assess your situation before changing systems.  This gives each employee an opportunity to assess there own productivity tools and offer feedback in regard to their personal productivity requirements.  This also can serve as a template for measuring the return on your ERP software investment.  It is important to identify where management tools might help improve and make it more efficient.  Create benchmarks of current performance in these weak areas so you can compare the new ERP software performance with the way you are doing it now.  Make note of the number of spreadsheets your employees use now, how much time it takes them to perform tasks and how many disparate systems they use.  This information will prepare you for determining ROI in favor of the new ERP software you select.

The most important ERP software selection criteria is to find a business management solution that works the way you work and not against it.  There are many options available so we strongly recommend to enlist an ERP consultant to help with the process.

Contribution by Kerry Gardner:  Director of Sales and Marketing - Klear Systems

Klear Systems

Klear Systems is a Sage, Microsoft and NetSuite business partner delivering world-class ERP and CRM solutions as well as custom development and IT services to customers throughout Southern California, including Orange County, Riverside, Los Angeles, San Diego, and Irvine.

We’re a young company with a tenured staff of professionals that bring broad experience and extensive talents to every engagement. Your business success is the measure of our success. Klear System’s talented team of programmers, consultants, and technicians never stops looking for innovative ways to solve business challenges. From project-planning, implementation, custom development, and ongoing support we keep the focus on delivering a measurable return on your technology investment.