The Widespread Use of QuickBooks — and Its Limitations
Millions of businesses around the globe use QuickBooks software for their accounting. With an estimated 84% of the small business accounting market, QuickBooks has enough product momentum and functionality to support small businesses through midmarket customers.
This is a broad base of customers for any accounting product, and the continued popularity of QuickBooks Enterprise is a testament not just to the application’s usefulness, but to the large gap that exists in the space where QuickBooks Enterprise desktop leaves off and where other well-known enterprise ERP systems begin.
Initially, a business will implement their accounting system to keep track of customers, vendors, items, and cash. More detailed processes are then introduced as the business requirements grow, such as tracking more specific information on the costs of certain products, or drilling into customer purchases or item sales activity to see more details. This additional data provides a much more informed basis for business decision-making but also has impacts on systems and software as the volume of data to be managed grows. (Growing pains with QuickBooks or scaling QuickBooks)
Data growth can happen in many ways. Growth can occur in the number of products or services offered, growth in the number of transactions processed regularly, growth in the dollar value of transactions, or growth in the number of employees who need access to the system. Each impacts the ability of the system to continue to support the business requirements, but not necessarily in a way that isn’t manageable.
Given enough time, a certain “density of data” will eventually be reached, causing the system to lose efficiency in manipulating the file. The business process requirements may not have changed, just the size or condition of the file and data. The company database file opens slower, operations slow down and processes take longer, the system crashes frequently or has errors, and the usefulness of the product is severely diminished. (QuickBooks file repair services)
Keeping the QuickBooks data maintained and in good condition will improve performance and increase longevity of the application.
Too often, businesses assume they have outgrown their QuickBooks software because it is slower or has problems when they begin using additional features. Frustration sometimes even turns to looking at changing the accounting software entirely. Yet experience has shown that many of these situations are solved with necessary data file maintenance and repair, and sometimes a little re-training or setup work.
Regular file maintenance and a little housekeeping can keep a QuickBooks file in good working condition for a long time. Regular backups with a complete verification and other routines will clean up the file and help the software manage the file more efficiently. But there are limits to how much data a single QuickBooks company data file can hold, so it may be wise to consider starting a new file every few years, just to keep the data manageable. This in no way means abandoning any data, as previous files can be retained and available to open and view at any time. Nor does it mean starting with fresh new data, as a new data file can be started with data from the existing file. How many years of data you can store in a QuickBooks Enterprise company file depends on several variables.
While QuickBooks is very easy to use compared to most accounting products that service this small/medium enterprise market, this is both a benefit and a bit of a problem. Many users aren’t really trained in accounting, they are trained in how to operate QuickBooks properly. Moreover, the knowledge of how to make something work in QuickBooks doesn’t always translate to either proper use or to proper accounting. Even if it is simple to accomplish something in QuickBooks, it is always wise to get a little confirmation of the setup and training on proper use.
For a QuickBooks Enterprise desktop customer, the next step up in software is a big one no matter what, and it would come with drastic change, require data conversion (or abandonment), and incur high costs in licensing, implementation and training services (Data migration to Business Central). If there is a good business purpose to make such a change, then it makes sense. But bearing the significant costs of change may not make sense if the problems are centered on poor housekeeping or improper usage.
Mendelson Consulting’s team of QuickBooks Enterprise experts and ERP consultants can help your company get your data file and QuickBooks operations in the condition they need to be. With data file analysis tools and numerous methods for dealing with QuickBooks data and operations issues, Mendelson provides the services your business needs to continue success with QuickBooks. And, if we find that you have outgrown what a QuickBooks-based solution can do for your business, we’ll have that conversation, too.
