QuickBooks Online is undoubtedly one of the most popular accounting software choices for businesses of all sizes. With its user-friendly interface and cloud-based accessibility, it has gained a massive following. However, like any software, it comes with its share of disadvantages that potential users should be aware of before making the leap. In this article, we'll explore some of the key drawbacks of QuickBooks Online, so you can make an informed decision for your accounting needs.
1. Limited Functionality:
While QuickBooks Online (QBO) is well suited for small to medium-sized businesses, it may not be an ideal fit for larger enterprises with complex financial operations. These large enterprises seek a comprehensive system that can handle complex accounting, detailed data analysis, manage human resources, offer customer support, and have robust marketing capabilities. In such cases, an Enterprise Resource Planning (ERP) solution is a necessity rather than relying on simplified accounting software.
Despite its primary target being small and mid-size enterprises, QuickBooks Online is rich in features. It includes features such as inventory management, debtor and invoice tracking, managing supplier bills, bank reconciliations, and remote access by multiple users.
Moreover, third-party apps seamlessly extend the capabilities of QuickBooks Online, allowing businesses to enjoy a more tailored experience.
However, if your demands require advanced features and customizations specific to your business activities, consider an ERP or collaborate with a skilled software engineer to meet those requirements.
2. Subscription Costs:
QuickBooks Online operated on a subscription-based pricing model. Some customers perceive it as costly due to recurrent monthly fees that accumulate over time. However, it's essential to consider the broader context:
(i) Competitive Pricing:
(ii) Investment, Not Just Cost:
(ii) Seamless Updates:
3. Internet Dependency:
QuickBooks Online's cloud-based architecture has both benefits and challenges. While it offers the advantage of accessibility from anywhere, it also makes the software heavily reliant on a stable internet connection. If you experience internet outages or slow connections, you might find yourself unable to access your financial data or perform critical accounting tasks.
However, if there is an internet outage at the national or international level, that would mean other businesses would be impacted too. Here are some mitigating factors to consider:
(i) Backup Solutions:
(ii) Offline Mode or Cached Access:
(iii) Redundant Internet Connections:
(iv) Mobile Hotspots or Tethering:
4. Limited customization compared to the desktop version:
Compared to its desktop counterpart, QuickBooks Online offers fewer customization options. Users often find themselves restricted in tailoring the software to their unique business needs.
This lack of flexibility can be frustrating, especially if your business has specific industry requirements or unique workflows.
Despite its limited customization, QuickBooks Online (QBO) can be considered better than its desktop counterpart for these unique features:
5. Data Security Concerns:
The security of your financial data is of paramount importance. With QuickBooks Online, you're entrusting your sensitive financial information to a third-party provider. Intuit, the company behind QuickBooks, employs robust security measures to protect your highly sensitive financial information.
With state-of-the-art encryption and continuous monitoring, QBO ensures that your data remains secure and private.
QuickBooks Online bringsallthe advantages of cloud-based software to keep track of your financial records. With end-to-end encryption used by the world's top banks and password-protected logins. QuickBooks Online is aVeriSign SecuredTMproduct. VeriSign® is the leading secure socket layer (SSL) certificate authority.
Experience peace of mind knowing that your business’s financial details are safeguarded with industry-leading security protocols.
7. Frequent Updates and Changes:
QuickBooks Online is committed to enhancing user experience by regularly updating its platform. While these updates are automatic and do not require user intervention, they are generally meant to improve and expand the software's capabilities.
Though these updates are intended to optimize performance, there may be occasional hiccups or temporary disruptions in existing features during the transition
Rest assured, these minor setbacks are for short duration and will be resolved quickly as the testing phase comes to an end.
8. What Now?
QuickBooks Online certainly offers numerous advantages for small and medium-sized businesses. However, it's crucial to consider of the limitations before embracing a platform. Consider such factors as ongoing subscriptions, reliance on internet, customization options, and data security concerns. All these are to be balanced against the advantages of a cloud-based system.
Ultimately, the decision to use QuickBooks Online or another accounting solution should align with your business's specific needs and preferences. Carefully evaluate these disadvantages alongside the software's benefits to determine if QuickBooks Online is the right choice for your accounting requirements.