{"id":16283,"date":"2023-02-23T14:42:00","date_gmt":"2023-02-23T19:42:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=16283"},"modified":"2023-03-30T07:14:03","modified_gmt":"2023-03-30T11:14:03","slug":"intacct-quickbooks-limitations-are-holding-back-saas-cfos","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/intacct-quickbooks-limitations-are-holding-back-saas-cfos\/","title":{"rendered":"QuickBooks limitations are holding back SaaS CFOs"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/technology-innovation\/\" class=\"entry-header__link\">Technology &amp; Innovation<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tQuickBooks limitations are holding back SaaS CFOs\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-02-23T14:42:00-05:00\">February 23, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"QuickBooks limitations are holding back SaaS CFOs\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/intacct-quickbooks-limitations-are-holding-back-saas-cfos\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/bill-fuesz\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/08\/BillFueszHeadshot-350x350.jpg\" class=\"entry-author__image\" alt=\"Bill Fuesz\" \/>\t\t\t\t<span class=\"entry-author__name\">Bill Fuesz<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">As a simple bookkeeping tool, QuickBooks meets the needs of many early-stage SaaS organizations, but pressures facing finance departments put that effectiveness to the test. A new report shows there are key limitations for QuickBooks-dependent SaaS CFOs and they should move on to better <a href=\"https:\/\/www.sage.com\/en-us\/blog\/intacct-saas-companies-outgrew-quickbooks\/\r\">alternatives<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">QuickBooks limitations: what the survey says<\/h2>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/switch-to-sage\/quickbooks-alternative\/\r\" target=\"_blank\" rel=\"noreferrer noopener\"><em>How QuickBooks isn\u2019t Keeping Pace with CFO Needs<\/em><\/a> from <em>CFO Dive<\/em> looks at a survey of 164 financial executives, including those at SaaS companies. It finds that 75% say switching between QuickBooks and <a href=\"https:\/\/www.sage.com\/en-us\/blog\/using-spreadsheets-doesnt-add-up\/\r\"><em>spreadsheets<\/em><\/a><em><u> <\/u><\/em>is a source of frustration to their teams. Finance executives use these spreadsheets to get the information and reporting they need in their daily work, which points out a major shortcoming in QuickBooks reporting. QuickBooks lacks the reporting needed by growing SaaS organizations. Absent real-time SaaS metrics include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monthly and annual recurring revenue<\/li>\n\n\n\n<li>Net dollar retention<\/li>\n\n\n\n<li>Cash flow<\/li>\n\n\n\n<li>Bookings and renewal forecasts<\/li>\n\n\n\n<li>Churn<\/li>\n\n\n\n<li>Customer acquisition cost<\/li>\n<\/ul>\n\n\n\n<p class=\"\">In addition, these survey respondents note additional QuickBooks challenges, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Data accessibility issues (29%)<\/li>\n\n\n\n<li>High occurrence of imbalances\/troubleshooting (27%)<\/li>\n\n\n\n<li>Too much manual data entry and reentry (26%)<\/li>\n\n\n\n<li>Upgrades\/maintenance (26%)<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Using QuickBooks, the monthly consolidation-and-close process is a time-consuming endeavor. Almost nine-out-of-ten Finance leaders report it takes up to 14 days to complete the close every month. The three areas they see as the biggest obstacles in the monthly close are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Data inaccuracies (17%)<\/li>\n\n\n\n<li>The impact of reconciliation and investigations (15%)<\/li>\n\n\n\n<li>Technology limitations (14%)<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Embracing<a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/switch-to-sage\/quickbooks-alternative\/\r\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;a solution capable of a continuous close<\/a>, as well as one with state-of-the-art collaboration tools for enhancing data accessibility, makes Finance more strategically valuable to the organization. That result can\u2019t be achieved using QuickBooks, making it the wrong choice for SaaS companies that aspire to reach the IPO stage and beyond.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">QuickBooks limitations: Growth demands change<\/h2>\n\n\n\n<p class=\"\">CFOs can\u2019t afford to let spreadsheet-based processes and monthly close bottlenecks exhaust their teams. QuickBooks challenges come when CFOs must make strategic contributions to the business. Nearly three-out-of-ten financial executives report the main pressure facing finance departments or <\/p>\n\n\n\n<p class=\"\">CFOs is the increased expectation to provide insights to the C-suite. At SaaS companies, growth-oriented CEOs want investor-grade reports to earn confidence in the business. Another top pressure includes increased expectation to work across silos and collaborate with other departments.<\/p>\n\n\n\n<p class=\"\">As they face these pressures, QuickBooks-burdened CFOs recognize there\u2019s a lot of opportunity for process improvement and transformation. When asked what would most benefit the finance function, they respond:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Greater flexibility to adapt current finance solutions (23%)<\/li>\n\n\n\n<li>Minimizing the need to go back-and-forth between financial software and spreadsheets (18%)<\/li>\n\n\n\n<li>Deeper insights via reporting and dashboards (18%)<\/li>\n\n\n\n<li>Achieving faster access to reports and insights (17%)<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Given these findings, it\u2019s no wonder <strong>37% of the CFOs surveyed are actively considering switching to a solution other than QuickBooks or QuickBooks Online.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">QuickBooks limitations: SaaS CFO challenges<\/h2>\n\n\n\n<p class=\"\">There are usually certain triggers that signal SaaS companies are outgrowing QuickBooks and must move to a robust, modern cloud-native solution. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The need to automate usage, subscription pricing and billing scenarios to get paid faster<\/li>\n\n\n\n<li>Seeking outside investment that would require GAAP compliance<\/li>\n\n\n\n<li>Spending too much time in spreadsheets<\/li>\n\n\n\n<li>The need for easy-to-use revenue recognition with automated ASC 606 and IFRS 15 compliance<\/li>\n\n\n\n<li>The need for a centralized system of record for real-time reporting, in-depth analysis, forecasting and budget vs. actuals&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/blog\/using-quickbooks-to-managed-multiple-entities-dont\/\" target=\"_blank\" rel=\"noreferrer noopener\">Multiple business entities<\/a>\u00a0with no consolidated chart of accounts<\/li>\n\n\n\n<li>Remote data access requirements<\/li>\n<\/ul>\n\n\n\n<p class=\"\">Additionally, QuickBooks doesn\u2019t have a native integration to Salesforce, doesn\u2019t offer combined billing, and cannot do credit memos to existing contracts, forcing finance leaders to do billing and revenue recognition in spreadsheets.<\/p>\n\n\n\n<p class=\"\">When asked what barriers finance leaders face in adopting new technologies, 31.5% cite budget constraints. There\u2019s certainly additional cost in moving from QuickBooks, but it has&nbsp;<a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/switch-to-sage\/quickbooks-alternative\/\r\" target=\"_blank\" rel=\"noreferrer noopener\">hidden costs<\/a>&nbsp;that executive should consider. QuickBooks simply wasn\u2019t designed to provide professional financial management capabilities for growing SaaS organizations with sophisticated, evolving demands that require better visibility into financial and operational performance. If you\u2019ve been feeling like you\u2019re outgrowing QuickBooks, you\u2019re hardly alone.&nbsp; Explore the benefits of switching with this <a href=\"https:\/\/www.sage.com\/en-us\/blog\/sage-intacct-vs-quickbooks-for-saas-startups\/\r\">five-step transition plan.<\/a><\/p>\n\n\n\n<p class=\"\"><a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/switch-to-sage\/quickbooks-alternative\/\r\" target=\"_blank\" rel=\"noreferrer noopener\"><em>How QuickBooks Isn\u2019t Keeping Pace with CFO Needs<\/em>&nbsp;<\/a>examines the current condition of CFOs using QuickBooks and why the product is less equipped for the future of finance than SaaS CFOs may think. To gain additional insights and see more of the research results,&nbsp;<a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/switch-to-sage\/quickbooks-alternative\/\r\" target=\"_blank\" rel=\"noreferrer noopener\">download the report here<\/a>.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a simple bookkeeping tool, QuickBooks meets the needs of many early-stage SaaS organizations, but pressures facing finance departments put that effectiveness to the test. A new report shows there are key limitations for QuickBooks-dependent SaaS CFOs and they should move on to better alternatives.<\/p>\n","protected":false},"author":1427,"featured_media":16284,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[48],"tags":[420],"business_type":[41],"lilypad":[],"context":[418],"industry":[450],"persona":[],"imagine_tag":[440,443],"coauthors":[609],"class_list":["post-16283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-innovation","tag-cloud-financial-management","business_type-growing-business","industry-software-saas"],"sage_meta":{"region":"en-us","author_name":"Bill Fuesz","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/03\/GettyImages-1314040262.jpg","imagine_tags":{"440":"Intacct Financial Services","443":"Intacct Large Business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/16283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1427"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=16283"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/16283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/16284"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=16283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=16283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=16283"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=16283"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=16283"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=16283"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=16283"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=16283"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=16283"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=16283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}