Signs You Might Be Outgrowing Your Accounting System
If you’re struggling with your accounting system, it might be a sign that you’re ready for something new. Perhaps your company has grown so much that it has outgrown its older accounting solution. Here are several indications to look for that justify moving to an accounting system with more features and scalability. User Permissions Some companies have a need to limit certain functions to specific users. Most systems come with basic functional limitations, such as restricting Accounts Payable and Accounts Receivable functions. But what if you need more granular user permissions such as access to only purchase orders or a certain bank account? Mid-market systems like QuickBooks Enterprise provide those features. Multiple Companies and Consolidated Financial Statements Do you have multiple companies that are the “children” of a parent company? You might need consolidated financial statements and the ability to open multiple companies at the same time. Number of Customers and Vendors If your business is growing and the number of customers and vendors you do business with exceeds 14,500, you will have reached a list limit in QuickBooks Premier. Each system has their own list limits, and these limits can get complex quickly, so check with your software vendor if you feel you are getting close. File Size and Performance There may also be file size limits that you need to watch, especially if you have a high volume of transactions or multiple years of history in one file. You could also have performance issues. If you have a new computer and your accounting system is still running slowly, you may be able to improve your computer’s performance by condensing your file or setting preferences differently before you have to switch. Inventory Features A mid-market system like QuickBooks Enterprise provides advanced features, such as tracking inventory in multiple locations, using the FIFO method, and managing lots or serial numbers. If you need these features, it may be worth upgrading your system. Enhanced Customization Most mid-market accounting systems provide better customization such as additional custom fields, better reporting, and improved form design. Number of Simultaneous Users The final reason to switch to a larger accounting system is if you need more simultaneous users. QuickBooks Pro allows for up to three simultaneous users, QuickBooks Premier handles up to five, and QuickBooks Enterprise makes room for up to 30 simultaneous users. QuickBooks Online allows up to 25 simultaneous users. Check with us if you are curious about your system’s license limits. Did any of these reasons resonate with you? If so, we’d be happy to discuss your needs and help you identify possible solutions.
About the Author - John S. Hasmonek received his Bachelor of Science Degree in Accounting with Honors and Highest Distinction from the University of Illinois at Chicago, Illinois in 1976. Mr. Hasmonek is a Certified Public Accountant with over 38 years of accounting and tax experience. His areas of expertise include financial statement compilations, reviews and audits, ERISA audits, financial projections, business and personal tax preparation, management consulting, and personal and corporate tax planning.