Question

1. Part 1 - you will write a memo to the company reviewing their first choice of accounting software, QuickBooks Online. They think it will help them get started but want to understand more of what it offers. In your memo, review the pros and cons of using QuickBooks Online. Remain focused on QuickBooks Online's features, advantages and disadvantages but do not explore other alternative options yet as that has been designated at Stage 2.

Submit a 2-3 page report for part 1 above explaining your findings as instructed.

Answer 1

Answer

QuickBooks online is one of the accounting software being used by small business for their book keeping purpose. Quickbooks, is developed by Intuit, and marketed primarily to small businesses and non-profit organizations. The software allows users to manage a variety of financial records, including sales receipts, payments, tax forms, financial invoices and inventory records. It offers the basic accounting solutions and inventory management tools. It has both pros and cons as every other software has:

Benefits of QuickBooks Online:

1.Better Collaboration & Easy Access to Data- Collaboration between users is simplified. The files get synced in real time and even remote access is available. The data can be accessed from anywhere and anytime.

2. No need of back up- No need to back up the data occasionally and store the information in external hard disks. The files can be protected against any data loss.

3. Automated Report Generation- QuickBooks Online allows you to send statements, estimates, invoices, and reports automatically. For better cash flow customers can send invoice promptly. We can even customise our company logo and fonts in our invoices.

4. Connecting Apps and Easy Expense Tracking- Managing accounts will be hassle-free and will allow syncing, importing and linking data from apps already in use such as American Express, Square, and PayPal. Automatic categorization of transactions, so, earnings and spending can be easily tracked. Besides, this you can easily access latest features and updates.

5. Figure-Out the Resources Easily- Business financial health can be maintained by identifying the resources essential for existence of business. This comprises raw materials, equipment funding and, the time spent by different employees on collecting payments, expenses, etc.

6. Real-time Collaboration- Multiple resources can work simultaneously on QuickBooks Online. Automatic download, reconciliation of transactions and simplified tracking of the expenses help to manage the cash flow easily. Customization of invoices and sending dozens of reports in just one click simplifies the data management process.

7. Affordable price- Another important benefit of this software is it is affordable. Even a small start-up could afford this software. A firm would also look for software which is value for money and this software is worth using it.

Like every other software QuickBooks online too have some disadvantages. Some of the cons of the software are listed below:

1. Lack of industry and business-specific features- This software is a simple software and does not take into consideration all the probable features of a business. The features that might be required vary from industry to industry.

2.Customisation of reports not possible- QuickBooks online have set of reports which it generates. However, if we want further detailed reports it is not possible to customise the same.

3.Instability/system crashes- System crashes would occur which would interrupt your business.

4. Lack of direct professional support- Since the software is online there is no direct professional support. Immediate requirements cannot be addressed, unlike in customised software where we have our inhouse professional to address any software issues.

5.File-size issues- There is a restriction on file size in the said software. There is restriction on file size which would affect the smooth flow of the business.

6.Limitations on the number of users- There would be restrictions on the number of users who can use the software post purchase. The licenses would be limited. Any extra user would cost us.

7.Inventory management issues- The inventory management tool is not so effective in QuickBooks Online. Lot of issues arise in the same.

8.Slow- This software is slow, and we cannot expect immense speed while using this software. This would consume some time.

9.Upgrade fees- The user need to shell adequate amount on upgrading the software and features.