One of the key challenges outsourcing firms face is meeting the ever-changing needs of a wide range of client types. More recently, companies ranging from startups to multinational enterprises are embracing the concept of outsourcing various processes to reduce costs and refocus on core competencies. This presents a unique challenge for outsourcing and accounting firms in that they need to adapt faster than their environment, clients and competitors. They find that as clients mature, gain customers and expand to new locations, they need a better, more complete business management solution that can not only keep pace but also help them accelerate their growth.
To remain ahead of the curve, firms should consistently evaluate strategic goals and decide whether the business management and accounting software systems they use still provide the right tools to support growing clients. Many firms find themselves taking a close look at QuickBooks accounting software, the financial system they often started off with.
Check out the webinar, "Insightful Accountant Sr. Editor William Murphy Discusses QuickBooks vs. NetSuite for Outsourcing" on June 15, 2021 at 2:00 p.m. Eastern Time. You can register here.
Here are four of the main reasons that outsourced accounting firms switch from QuickBooks — and the benefits they see.
QuickBooks hinders business connectivity and visibility. If your clients are currently performing more accounting outside of the financial system than in it, QuickBooks is likely hindering efficiency. Band-aid solutions like spreadsheets and standalone applications like QuickBooks don’t have the ability to “talk” or share data with one another, requiring more human intervention. A more sophisticated outsourcing platform eliminates the need for manual data entry, significantly reducing errors in the financial management process. Outsourcing firms know that their clients have many critical decisions to make and therefore need accurate and timely data. Help your clients break free from QuickBooks’ siloed and manual mindset with a more robust financial system that shares insights in real time. With up-to-date financial data and “what-if” scenarios in hand, your clients can better determine the steps they need to take to react to new opportunities.
QuickBooks lacks flexibility. Outsourcing firms are no strangers to the saying, “Change is the only constant.” Smart business leaders know that their growing clients consistently need to adjust their business models and systems. Software solutions such as QuickBooks are geared towards small clients with very simple requirements. By switching to an enterprise resource planning (ERP) solution, there’s no need to slow down business to select, implement and train on a new system every time a client’s model changes. With ERP, clients receive a flexible solution that allows for growth and provides the ability to adjust operations and go-to-market strategies. Outsourcing firms can quickly and efficiently build custom workflows at no cost as their clients’ requirements change.
QuickBooks limits functionality. QuickBooks has traditionally narrow finance capabilities; it can only support basic accounting and financial functions. As they grow, clients will need increasingly robust solutions to support them in areas like inventory, projects, ecommerce, and HR. They require an integrated system that centralizes and automates accounting and supports other key business functions. With real-time visibility and control of financials, payroll, projects, inventory and suppliers, your clients can make smarter, faster decisions with access to their system anytime, anywhere. By implementing a unified cloud platform that incorporates all business functions, firms can more efficiently deliver their outsourced services.
QuickBooks caps the size of your clients. Firms that rely on QuickBooks as their only platform put a hard cap on the size of clients they can work with. They often lose clients who grow and start needing additional services to those the outsourcing firm provides. Firms need a solution that can be deployed to clients of any size, so they can build more profitable, longer-term client relationships.
Advice for those thinking about the switch
Many outsourcing firms find that they simply outgrew the limitations of QuickBooks. Now could be the right time to evaluate your technology stack to ensure you can take your business and your clients’ business to the next level. As an outsourcing provider, you play a key role in helping clients determine the right time to upgrade their accounting system and advising on which product is right for them. Adding another solution to your portfolio to support a wider variety of clients can also keep your business healthy and increase your value as a trusted advisor.
Check out the webinar, "Insightful Accountant Sr. Editor William Murphy Discusses QuickBooks vs. NetSuite for Outsourcing" on June 15, 2021 at 2:00 p.m. Eastern Time. You can register here.