While you have more than likely heard about the benefits of QuickBooks software, how do you know if this accounting solution is right for you? There are several QuickBooks solutions, so choosing the right one for your business needs is essential. Regardless of the nature of a business, the most vital requirement in running a business is to handle the various bookkeeping tasks effectively. Improper or incorrect recording of business activities will be disastrous for any business. Using QuickBooks to keep your financial records lets the company evade those possible issues.
What is QuickBooks?
QuickBooks is a popular small business accounting software businesses use to manage income, expenses, and keep track of the financial health of their business. You can use QuickBooks to invoice customers, pay bills, generate reports, and prepare taxes. Your business can also use it to generate month- and year-end financial reports and prepare for quarterly or annual business taxes. As a business owner, you can learn to manage your QuickBooks or outsource your bookkeeping. Get answers to your questions about QuickBooks and more from our trained and certified QuickBooks Pro Advisors.
QuickBooks vs. Company Size
Although QuickBooks is great for many reasons, that doesn’t mean every company will find that this solution to matches their accounting software requirements. You can determine relatively quickly whether your business should spend time assessing QuickBooks for your software needs by comparing your company with one of the following size categories:
Small Businesses
Small businesses that need a software package with minimally adaptable invoices, payroll activity, and sales tax records capabilities will find QuickBooks a viable option.
Midsize Businesses
A medium-sized business with experienced accounting software users looking for minimal customizability and maximum value can benefit from QuickBooks, especially if they are not looking for a great deal of interactivity with other software, aside from simple Microsoft Office output files (like Excel or Access).
Large Businesses
In many cases, larger businesses will demand a more adaptable and customizable platform that offers several additional options and unique attributes. QuickBooks is limited in that there are typically only a certain number of licenses available, and your large business may need greater scalability to be effective. Yet, in the case of a larger company performing mostly uncomplicated accounting tasks, QuickBooks can easily be a more cost-effective alternative to enterprise-level accounting solutions.
QuickBooks Online
QuickBooks Online offers more time-saving automation features than QuickBooks Desktop and integrates with third-party payment processors, allowing your customers to pay their invoices directly online. However, QuickBooks Online is also powerful software that can serve companies in various industries. QuickBooks Online is better for:
- Invoicing customers: QuickBooks Online can automatically calculate sales tax to apply to an invoice based on your customer’s address.
- Businesses that prefer cloud-based accounting: You can access QuickBooks Online from any computer or mobile device connected to the internet, and it’s easy to share data with your accountant.
- Ecommerce businesses: QuickBooks Online seamlessly integrates with many e-commerce platforms in addition to its robust inventory management feature.
- Businesses with multiple users: You should consider QuickBooks Online if you need to provide access to your books to more than one person, including an outside accountant, such as a tax professional. With QuickBooks Desktop, you have to pay additional fees if you need extra users.
- Mobile app: QuickBooks Online comes with a mobile app that allows users to perform almost any accounting function while on the go.
- Access data anywhere from multiple platforms: QuickBooks Online data can be accessed 24/7 from any PC, Mac, or mobile device with an internet connection.
QuickBooks Desktop
QuickBooks Desktop is preferable for managing complex accounting needs, as its features are generally more developed than those of QuickBooks Online. In addition, QuickBooks Desktop excels with its industry-specific editions that include custom workflows and reports tailored to specific industries. You should give QuickBooks Desktop serious consideration if your business is a retailer, manufacturer, wholesaler, professional service provider, construction contractor, or nonprofit. QuickBooks Desktop is better for:
- Managing books across multiple businesses: QuickBooks Desktop allows you to manage the books for an unlimited number of companies as long as you don’t need consolidated financial statements.
- Businesses needing intensive inventory accounting: Online and Desktop offer inventory accounting, but QuickBooks Desktop has more in-depth inventory management tools.
- Users who prefer desktop software: If you want access to your accounting program without an internet connection, QuickBooks Desktop is more suitable for you.
- Specialized industries: QuickBooks Desktop Premier includes five industry-specific editions: general contractor, manufacturing and wholesale, retail, nonprofit, and professional services.
If most of your accounting duties are done remotely, QuickBooks Online is the right choice. However, if you want the ability to manage your books without an internet connection or you need industry-specific features, choose QuickBooks Desktop. QuickBooks Desktop also has more advanced inventory accounting, but the lack of a fully functional mobile app is a severe shortcoming in today’s mobile age. If you think QuickBooks is right for you or have additional questions about QuickBooks, contact the experts at Hayes & Associates for a complimentary consultation.
