5 Reasons Why QuickBooks Falls Short for Growing Businesses

QuickBooks is one of the most popular small business accounting systems on the market. The overwhelming success of the product is evident with a user base exceeding 3.5 million. For the money, QuickBooks provides good value with a reasonable assortment of features to meet the needs of many small businesses and startups. However, it does have limitations that prevent the accounting software from meeting the needs of small businesses that are experiencing or forecasting rapid growth.

As a premier Microsoft Solutions Partner, Centre helps small businesses that were using QuickBooks, and QuickBooks Online, and looking for a a replacement due to common challenges, including:

  1. User Count Limitations
  2. Need for Enhanced Internal Controls
  3. Lack of Integration Between other Software
  4. Inability to Customize for Specific Needs

If these challenges resonate with you, delve deeper to uncover the signs signaling the need to transition your accounting systems to a cloud ERP solution such as Microsoft Dynamics 365 Business Central.

Challenges when using quickbooks as your erp

Over the decades, QuickBooks Online has seen consistent growth despite occasional service outages. In times of financial challenges, such as recessions, individuals often embark on the journey of starting their own businesses. This growth inevitably leads to the expansion of businesses, making it quite common to outgrow the capabilities of QuickBooks Online.

If you've been comparing QuickBooks to Microsoft Dynamics GP or Microsoft Business Central, it's important to note that QuickBooks Online lacks features such as purchase orders and robust inventory tracking. While it does offer some reports and graphs, they may not be as comprehensive as those in the desktop version of QuickBooks. Customizing reports in QuickBooks Online is also somewhat limited. So if you've realized you've outgrown QuickBooks, it's safe to say that you've also outgrown QuickBooks Online.

Here are a few negatives of QuickBooks Online that small businesses experience.

  • Difficult Implementation
    Information cannot be easily imported from, or exported to, the desktop-based version of QuickBooks into QuickBooks Online Basic.
  • Slow Functionality
    High volumes of internet traffic can lead to delays in service response times, potentially causing servers to be inaccessible. This can result in a hindrance to accessing company data, especially if the user's internet connection is also disrupted.
  • High Risk
    Despite taking every precaution to safeguard company data, there is still a potential risk of malicious hackers breaching Intuit's security measures and gaining unauthorized access to sensitive accounting information.

In contrast, Microsoft Dynamics effortlessly adapts to the evolving needs of expanding businesses. The Rapid Start data migration tool available in Microsoft Dynamics 365 Business Central seamlessly transfers your existing QuickBooks data with just a few simple clicks. Microsoft provides a user-friendly interface that grants deep insights into every facet of your operations, boosting efficiency organization-wide, and offering a reliable and cutting-edge platform for sustained growth.

“Running a growing, multi-departmental organization in QuickBooks became unmanageable. Each time we added a line of business, we had to create a new QuickBooks instance. It made recording intercompany transactions and bank reconciliations extremely difficult. One of the strengths of Microsoft Dynamics is that it allows us to easily maintain separate ledgers for each of these business units.”

Director of IT
Oil and Gas Company


top reasons why you should move off quickbooks

#1. Your Business is Growing and Needs a Scalable ERP Solution

Depending on your QuickBooks version, you may face limitations with under twenty-five simultaneous users on the Online Edition. Performance issues could arise. In contract, Dynamics 365 Business Central, a cloud-based ERP software solution, utilizes the Microsoft Azure cloud ecosystem as its underlying platform. This ensures a cloud-based foundation which adheres to trust, security, and compliance required by Microsoft for your business with the scalability to increase growth over time. Business Central’s cloud platform on Azure provides the agility, scalability, and reliability needed for modern business operations12.

#2. Internal Controls Have Become Increasingly Important

As your business expands, it becomes increasingly challenging for the owner to oversee every transaction, necessitating the implementation of more robust internal controls. With Microsoft Business Central, audit trails offer a detailed record of "who", "what", and "when", ensuring accountability and transparency within your operations.

#3. You Need Workflow Tools for More Control and Efficiency

With business growth, the need to efficiently manage documents electronically becomes crucial for saving time. While QuickBooks lacks workflow tools, users of Microsoft Business Central can seamlessly track and take action on workflow transactions within Business Central, Outlook, and SharePoint server, enhancing overall operational efficiency.

#4. You Need Better Integration with Microsoft Office and Other Applications

QuickBooks offers minimal integration with Microsoft Word and Excel, while Microsoft Business Central boasts full integration with Microsoft 365 and Office applications. Its user interface mirrors Outlook, providing reporting and analysis interfaces akin to Microsoft Excel.

“QuickBooks is an excellent financial solution for a small company. But, as our company grew in size and volume, we had to create multiple QuickBooks files to maintain operations – and none of these files could be linked together. This left us unable of practicing traditional accounting procedures, and it complicated any type of reporting, whether managerial or financial.”

Chief Accounting Officer
Local Energy Company


#5. You Need Additional Financial and Operational Reports Beyond What QuickBooks Provides

QuickBooks does not handle defined reporting periods. QuickBooks generates fixed financial statements that are not customizable and lacks support for statistical data or KPIs. In contrast, Microsoft Dynamics offers Unit Accounts, allowing you to track various metrics such as units, headcounts, square footage, or any specific data crucial to your business needs.

“As soon as we installed QuickBooks, we knew it was not the right solution – it was inexpensive, and it enabled simple reporting – but to support the sophisticated project management and accounting required by our business, we knew we would need to turn to Microsoft Dynamics.”

Program Manager
Local Manufacturing Company

Do what's best for your business 

In the end, you need an ERP that's aiding you in accomplishing your business goals. Until you're operating efficiently from a system you trust, those goals may be put on the back burner. Don't force yourself to slow down, consider moving from QuickBooks to today and immediately increase productivity. 

Unsure? Uneasy about the switch? We get that. Contact us and let us guide you through the process. We'll make sure you're prepared for whatever struggles you'll face. 

Originally published on April 25, 2024

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About the Author

Emily Kirk Emily Kirk

Creative content writer and producer for Centre Technologies. I joined Centre after 5 years in Education where I fostered my great love for making learning easier for everyone. While my background may not be in IT, I am driven to engage with others and build lasting relationships on multiple fronts. My greatest passions are helping and showing others that with commitment and a little spark, you can understand foundational concepts and grasp complex ideas no matter their application (because I get to do it every day!). I am a lifelong learner with a genuine zeal to educate, inspire, and motivate all I engage with. I value transparency and community so lean in with me—it’s a good day to start learning something new! Learn more about Emily Kirk »

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