We understand that there are reasons a company would like to start with a simple accounting software like QuickBooks. It’s easy to start, provides the basic needs of a small company, and gives you a limited amount of growth. Do you intend to grow your business? How about do business in different currencies? Open new locations? If you do, here are 5 major reasons that you should just skip QuickBooks and choose a more secure, adaptable, and scalable system like Microsoft Dynamics GP.
A startup will generally begin by using the core financial functionality (e.g General Ledger, Accounts Payable, Accounts Receivable, and Bank Reconciliation). But what happens when you do need to upgrade? You’ve spent time and money training your individuals to use QuickBooks, and now you need additional functionality. Wouldn’t it have been easier to have this option in the first place?
If you have never used either software before, the time spent learning GP would not exceed the time spent learning the basics of QuickBooks. QuickBooks has a simple user interface and may appear less daunting. Microsoft Dynamics GP still has a user friendly interface, but has the powerful reporting and functionality that growing companies need.
In addition to the User Friendly Interface and scalable solution, the proper training and implementation can save thousands per year in personnel costs. Brittenford Systems, for instance, offers customized classroom training, upcoming classes, and detailed step-by-step demonstrations to make the most from your choice of GP. For instance, when your business needs it, our Management Reporter Training will provide you additional insight into the Key Performance Indicators on which your startup should focus.
2) Buy Once, Never Pay to Convert Data
Startup companies plan to grow. This means you will in fact need to move to a more advanced system like Microsoft Dynamics GP. You will not recoup the cost you originally paid for QuickBooks, so you are paying to purchase two systems. Again, think of not only the cost of choosing both, but the cost mentioned prior in the ‘training’ section.
Also, when you upgrade systems, you will incur the extra cost of converting the QuickBooks data to Dynamics GP. In most cases this data conversion will cost more than the initial software purchase. If you start with Dynamics GP right away, there will be no data conversion costs as you grow.
3) Transaction History and GAAP Compliance
When you do a data conversion from QuickBooks to Dynamics GP typically you will bring over summary detail and not detailed transaction history for the time that you were on QuickBooks. In a typical conversion we will convert some GL history, but as far as AP check history and customer payment history, those are generally too costly to convert. This means that you then have to go back to QuickBooks to look at activity prior to the conversion. Again, if you start with Dynamics GP right away all of your information stays in one place.
Further, Dynamics GP is a GAAP compliant system. This means that transactions cannot simply be deleted without having any record of that deletion activity. Quickbooks is not GAAP compliant. Many startup companies are working with banks or venture capital firms that want to know the data is secure and less prone to fraud. Any accounting entity that would be auditing your company will feel more comfortable if you are using Dynamics GP.
4) Database Functionality and Software Integration
QuickBooks runs on a proprietary database, but Dynamics GP runs on a Microsoft SQL database. If you have all of your company data in SQL as opposed to having it in two places, this gives you more control and flexibility in terms of reporting and integration. Many companies like to standardize on Microsoft technology.
Because Dynamics GP is built on the open Microsoft SQL database platform it means it is much easier to integrate other systems to Dynamics GP than to QuickBooks. Integration cuts down on manual data entry and incomplete reporting.
Further, as a startup company, you will be traveling to pitch investors and sell your product. This is why Brittenford offers the integrated solution for travel and expense management—Concur—and the solution that will automate reporting between GP and Concur—ExpenseConnect.
5) Functionality from the Start, Scalability for the Future
Dynamics GP includes additional functionality and modules that a company can grow into, that QuickBooks does not have. For example a robust fixed assets system, automatic allocations and consolidated reporting across multiple companies. And inventory and job costing are very different when you compare QuickBooks to Dynamics GP.
Related: Adapt and Grow with Microsoft GP
So why start out with QuickBooks? Dynamics GP is less expensive, more secure and has more functionality now and in the future. Why wouldn’t your startup choose Microsoft Dynamics GP?
So there you have it. 5 reasons to skip the limitations of QuickBooks and move directly into the advanced capabilities provided by Dynamics GP. Special thanks to the ERP Software Blog for offering insight and reasoning in their article “Reasons a Startup Should Start with Dynamics GP Instead of QuickBooks Enterprise.”
As a provider of Software and Software as a Service offerings, we offer the following resources to help grow your mid-market business.
- Article: Common ERP Terms and Their Meanings
- Blog: 5 Common Mistakes When Choosing ERP Software
- Whitepaper: Upgrading from QuickBooks
Brittenford Systems is a leader in the industry, being recognized as an Accounting Today Top 100 Value-Added Reseller, Bob Scott Insights Top 100 VAR, and was once recognized among the top 5% of Microsoft Partners worldwide. Learn more about our history and recognition in the industry here. Ready to make the move to Dynamics GP Software? Contact us to learn about the advanced functionality and scalability of Dynamics GP for your business.