Chances are, you’ve either used or considered using QuickBooks for your business. It’s no surprise – QuickBooks is one of the most popular accounting software platforms for small- to medium-sized businesses out there. Because of its prevalence and affordability, QuickBooks has become the norm for professionals across industries.
But “being the norm” doesn’t always mean it’s the right option for you and your company. And when has the cannabis industry ever settled for just the norm? The cannabis professionals we know are inventive, intelligent and forward-thinking – they need their accounting software to match. So, if you’re tempted to use QuickBooks for its familiarity, here are four reasons you should consider other options.
It feels outdated.
With a plethora of agile, hyper-modern and customizable cloud-based accounting software popping up, the desktop version of QuickBooks simply looks old-school. Cloud-based accounting is the future – it makes everyone’s lives easier with 24/7 accessibility, remote log-ins and auto-updating. QuickBooks does have a cloud version, but it unfortunately lacks many of the features that made the software so popular in the first place. Read more about why we recommend cloud accounting here.
It lacks a good inventory system.
Cannabis business leaders need a robust way to track inventory – this is one area where QuickBooks fails. Unless you’re using a third-party inventory tracking system that integrates with QuickBooks, you’re going to give yourself a lot more work. Even then, integrating the separate programs can cause issues, too. You can avoid any inventory-related headaches by investing in accounting software that comes with a strong inventory system. Bonus points if automation, AI and autocoding is included as well.
It’s difficult to maintain an audit trail.
An audit trail and maintaining financial records are a vital part of proper accounting. These functions are rendered nonexistent as multiple individuals can share logins on QuickBooks, eliminating much of this valuable information in the process. Check out this blog on records retention to understand why this can present huge issues for business owners. Further, when mistakes happen, it’s nearly impossible to distinguish who completed what actions and when. Overall visibility is subpar, especially when compared to other accounting software on the market.
It’s hard to organize.
Good luck finding what you need when you need it on QuickBooks. Because of the software’s convoluted nature, it takes a long time to recover important documents that could be necessary for tax purposes, an investor, due diligence or otherwise. In addition, this software doesn’t allow for customization – frustrating both business leaders and their accountants. Fixing a modern, cloud-based system such as Xero takes a lot less time and money.
While QuickBooks might make sense for some companies – especially those that are still relatively small – it doesn’t make sense for the majority of cannabis enterprises today. The industry is growing and changing rapidly, and accounting software needs to keep up with increasingly complex demands.
Wondering what accounting software makes the most sense for your business? Reach out to our team of cannabis industry experts and accountants for guidance.