QuickBooks Desktop is a popular accounting software among small businesses. It is known for its comprehensive set of features and its ability to handle various accounting tasks such as invoicing, bill payment, and expense tracking.
However, despite its popularity, QuickBooks Desktop does have some limitations and drawbacks. One of the main limitations is that it is a desktop-based software, meaning it must be installed on a computer and can only be accessed on that particular device. This can be inconvenient for business owners who need to access their financial information from multiple locations or devices.
Additionally, QuickBooks Desktop requires regular updates and can be prone to technical issues. These updates can be time-consuming to install and may require the assistance of an IT professional. Technical issues can also disrupt business operations and may require additional troubleshooting.
Overall, while QuickBooks Desktop is a useful tool for small businesses, it is important for business owners to be aware of its limitations and drawbacks before committing to using the software.
3 Alternatives to QuickBooks Desktop for Small Businesses
If you are a small business owner looking for an alternative to QuickBooks Desktop, there are several options available to you.
1. Online accounting software
One option is to switch to an online accounting software, such as Xero or Wave. Online accounting software is accessed through a web browser, meaning it can be used from any device with an internet connection. This makes it a convenient option for business owners who need to access their financial information from multiple locations. Online accounting software also tends to have more frequent updates and a lower risk of technical issues compared to desktop software.
2. Standalone accounting software
Another option is to switch to standalone accounting software, such as FreshBooks or Zoho Books. Standalone accounting software is similar to QuickBooks Desktop in that it is installed on a computer, but it does not require regular updates and is generally less prone to technical issues. Standalone software may be a good option for business owners who prefer a desktop-based solution but want to avoid the hassle of updates and technical issues.
3. Spreadsheet-based accounting
If you are comfortable with spreadsheets and are looking for a more basic accounting solution, you may want to consider using a spreadsheet-based system. There are several templates available online that allow you to track your income and expenses using a spreadsheet program such as Microsoft Excel or Google Sheets. Spreadsheet-based accounting can be a simple and affordable option for business owners who only need basic accounting features.
Overall, there are several alternatives to QuickBooks Desktop available to small business owners. Each option has its own set of pros and cons, so it is important to carefully consider your business’s needs before making a decision.
Comparison of Alternatives to Quickbooks Desktop
When considering alternatives to QuickBooks Desktop, it is important to compare the options in terms of cost, ease of use, and features.
Cost
One factor to consider is cost. QuickBooks Desktop typically requires an upfront purchase, with prices starting at around $300 for the basic version and going up to $700 for the advanced version. In addition to the initial purchase, QuickBooks Desktop requires an annual subscription for ongoing support and updates. Prices for the annual subscription start at around $250.
Online accounting software, on the other hand, is usually subscription-based, with prices starting at around $10 per month. Standalone software is also typically purchased upfront, with prices ranging from $100 to $300. Spreadsheet-based accounting is the most affordable option, as it only requires the purchase of a spreadsheet program such as Excel, which can be purchased for a one-time fee of around $100.
Ease of use
Another factor to consider is ease of use. QuickBooks Desktop is known for its comprehensive set of features, which can make it a bit overwhelming for users who are new to accounting software. Online accounting software and standalone software tend to have a more intuitive interface, making them easier to navigate for inexperienced users. Spreadsheet-based accounting is the simplest option, as it only requires basic spreadsheet skills.
Features
In terms of features, QuickBooks Desktop is the most comprehensive option, with a wide range of features including invoicing, bill payment, expense tracking, and inventory management. Online accounting software and standalone software also offer a good selection of features, although they may not be as comprehensive as QuickBooks Desktop. Spreadsheet-based accounting is the most basic option, with limited features compared to the other alternatives.
Overall, the best alternative to QuickBooks Desktop will depend on your business’s specific needs and budget. Carefully consider the cost, ease of use, and features of each option to determine which one is the best fit for your business.
Conclusion
QuickBooks Desktop is a popular accounting software among small businesses, but it does have some limitations and drawbacks. If you are considering switching to an alternative, there are several options available, including online accounting software, standalone software, and spreadsheet-based accounting. Each option has its own set of pros and cons in terms of cost, ease of use, and features.
To determine which alternative is the best fit for your business, consider your budget, accounting skills, and the specific features you need. Online accounting software may be a good option for business owners who need to access their financial information from multiple devices and want a more intuitive interface. Standalone software may be a good option for business owners who prefer a desktop-based solution but want to avoid the hassle of updates and technical issues. Spreadsheet-based accounting may be a simple and affordable option for business owners who only need basic accounting features.
If you do decide to switch to a new accounting system, it is important to carefully plan the transition to ensure a smooth and seamless process. This may involve transferring data from your current system to the new one, training employees on the new system, and updating any financial processes that may be affected by the switch. With careful planning and attention to detail, you can successfully make the switch to a new accounting system that meets the needs of your business.