Time for QuickBooks® upgrade? How about PeachTree, MAS 90…or even homegrown accounting solutions?

Accounting solutions such as QuickBooks typically have limited accounting system software features and database performance. For smaller operations, this can be appealing because of its simplicity. However, expansion dictates a change in accounting software.

Most often, outgrowing QuickBooks—or comparable accounting software solutions—is evidenced when unacceptable delays in menus and screens start occurring, or when printing a report takes too long. This threshold generally occurs when file size exceeds 30 MB or total transactions exceed 32,000 (Source: J. Carlton Collins, CPA). Even a few hundred employees can trigger slow performance of many less-scalable accounting solutions.

A Jan. 7, 2008 report on webcpa.com adds, “Most of the entry-level systems available today are limited to only a few simultaneous users, which presents a problem…it’s also likely that the transaction volume will increase. With today’s fast PCs, a modest increase in transaction volume probably won’t nuke…accounting systems, but at some point performance will start to suffer, often to the point where it become[s] bothersome or even impacts productivity.”

Priority Magazine reinforces the argument to evaluate accounting software as expansion occurs: “For many small and mid-sized businesses, this need for greater user access is a common reason to upgrade. Likewise, if your current accounting platform starts to take an unreasonable amount of time to generate reports and load screens or if you find yourself executing increasingly tortured workarounds to complete certain tasks, you’re probably ready to update your software.”

Following are criteria to examine carefully before deciding on any of the mid-range accounting solutions now available:

Evaluate expected transaction levels—There are mid-range accounting solutions that continue running strong well into the millions of transactions. In contrast,QuickBooks’ database performance can start declining after just 32,000 transactions.
Determine required level of financial reporting. For example, do you need scheduled reports that can be delivered via email to predetermined recipients? If so, look for accounting software that fills the bill.
Calculate number of expected simultaneous users. QuickBooks maxes out at 5-20 concurrent users, depending on version. Mid-range accounting solutions can accommodate a thousand or more users at the same time. Make sure to think ahead. Your needs now and three years down the road may be very different.
Establish desired level of accounting services monitoring. Do you want your accounting system software to be capable of monitoring hundreds of critical measurements in ongoing fashion? Do you want your accounting software to issue an alert when desired levels deviate significantly?
Make sure the accounting software integrates with business applications familiar to employees (e.g., Microsoft Office), to make the transition easier and more efficient.
Decide what level of security is appropriate with the new accounting software. QuickBooks, for example, offers basic security. Mid-range accounting software offers multiple layers for redundant protection. Microsoft Dynamics ® GP, in contrast, can apply eight different layers of security.

Be vigilant about what you need—both now and in the future—when considering an accounting software upgrade. It’s much easier to get what you need upfront than to fret over what you didn’t get at the back end of the implementation.

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