Did you hear what happened to FTX? The crypto wallet that turned out to be a massive scam? Well, one of the most surprising aspects of the case was the founder, Sam Bankman Fried, was using QuickBooks to manage millions of dollars of assets.
There’s a reason bankruptcy lawyers were incredulous about this. QuickBooks can’t handle big companies with big revenue.
When a construction company gets bigger, it might find that QuickBooks for business doesn’t work as well anymore. It’s not uncommon for a construction company to outgrow QuickBooks. Instead, they need specific construction accounting software.
Here are some signs that your construction company has outgrown QuickBooks and might need to think about using a different accounting system.
Not Enough Features
One way to know that your construction company has outgrown QuickBooks is when you don’t have all the accounting features that you need.
QuickBooks is made for small businesses. As a construction company gets bigger, it might need things like keeping track of:
- Job costs
- Managing projects
- Inventory
These features aren’t available in QuickBooks. This means your company might have to use multiple software programs or do things by hand.
Can’t Handle Card Transactions
Another sign that your construction company has outgrown QuickBooks is that it can’t handle complicated transactions. QuickBooks is made for simple accounting transactions like invoicing and paying bills.
But as a construction company gets bigger, it might need to handle things like change orders, holdbacks, and progress billing. These transactions can be hard to manage in QuickBooks. Moreover, this can lead to mistakes and inefficiencies.
Can’t Connect to Other Software
If you’re using software in your day-to-day construction accounting processes, then your accounting system might need to connect to other programs such as CRM (customer relationship management), project management, estimating, and payroll.
QuickBooks isn’t made to connect to other software. This means your company might have to enter data into multiple software programs by hand. This can lead to mistakes and inefficiencies. It can also make it hard to see your company’s financials as a whole.
Can’t Create Good Reports
Another sign that your construction company has outgrown QuickBooks is that it’s hard to create accurate financial reports. QuickBooks is made for basic financial reporting.
But as a construction company gets bigger, it might need more advanced reporting. This includes things like job costing, project profitability, and cash flow analysis. These reports can be hard to make in QuickBooks. This can make it hard for your company to make smart decisions.
Not Flexible
Finally, one of the most important signs that your construction company has outgrown QuickBooks is that it’s not flexible. QuickBooks is made for small businesses. It can’t handle the growth and complexity of a construction company.
As your company gets bigger, it might need more advanced features and functionality. QuickBooks might not be able to give them to you. This can lead to mistakes and make it even more difficult for your company to be competitive with others in the construction industry.
Can’t Handle Multiple Companies
What if your construction company has multiple companies or projects? It might be difficult to keep track of everything using QuickBooks, since it’s not multi-tenant.
QuickBooks is not designed to handle multiple companies or projects. This can make it hard to get a clear picture of your financials.
Limited Access to Data
If you have multiple team members working on your construction projects, it could be challenging for them to access the data they need in QuickBooks.
QuickBooks only allows a limited number of users to access the system, which can make it hard for your team members to access the information they need.
Lack of Customization
QuickBooks is designed to be general accounting software. It might not have the ability to customize to your specific construction needs.
Limited customization options may not be able to handle specific construction aspects such as compliance, taxes, and regulations.
Limited Ability to Track Inventory
For construction companies, tracking inventory can be a crucial aspect, such as keeping track of materials, equipment, and tools.
QuickBooks is not designed to handle inventory management. Therefore, it may not be able to provide the necessary features for construction companies to track their inventory efficiently.
Limited Mobile Access
With construction companies, team members may not always be in the office. QuickBooks may not have a mobile app that allows access to the accounting system when out of the office.
This could cause inconvenience for team members and can slow down processes.
Limited Security Features
QuickBooks may not have the advanced security features that construction companies may require to protect their financial data. This could be a concern for companies handling sensitive financial information.
Limited Support for Multiple Currencies
As construction companies expand internationally, they may need to handle transactions in multiple currencies. QuickBooks may not have the ability to handle multiple currencies.
This can make it difficult for companies to track their financials accurately. It can lead to errors in accounting. And you don’t want this to happen because you could end up in trouble with the IRS as you fall short of their guidelines and regulations.
Have You Outgrown QuickBooks?
In short, as your construction company grows, you might find that you have outgrown QuickBooks. If your company is experiencing any of these signs, it might be time to think about using a different accounting system. As such, using a different system can help your company streamline its processes, improve its financial reporting, and make better decisions.
For more on specialized accounting software in the construction business, be sure to contact us to see how our team can help you today.