Curious how small sized businesses are doing it?
Is quickbooks good enough?
Sam bank an fried used quickbooks on his multi billion $ business. Good enuf for me ;)
5 mil revenue is considered small?
Hire someone to do it
A lot of restaurants do $5m per year in sales but the margins are incredibly low so it doesn’t seem like that big of an operation.
I believe the definition of small business is <$10m
Yes - The North American Industry Classification System defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees).
So if you are under 100 employees you aren’t even a business? What are you? A gang? Lol
Hire someone 100%
I use quickbooks and currently at 7M annual revenue. Have a guy part time for book keeping though.
whats your business
We hired our own full time CFO to handle accounting and budgeting when we were doing ~3.5M revenue. Was definitely worth it. At 9m we hired another full time accountant to help our CFO.
whats your business tho
It’s a B2B service business. We do software development and consulting.
When bookkeeping became too much for me to handle I used Bench Accounting, you can Google them. It was pretty good.
Same, we do our accounting with bench.co, and as of this year our taxes also.
As someone who works in the lower MM PE space and sees plenty of businesses this size, QB is the norm (and also perfectly acceptable to a buyer if you’re ever looking to sell). I recognize I’m not a fellow entrepreneur but I hope that perspective is helpful.
Entrepreneur who has sold to a fairly large acquirer. Quickbooks is definitely good enough.
Seen businesses sell with QB for the books. I was never part of the transactions but saw acquisitions and sales by friends and colleagues.
Multi eight figures. Quickbooks.
This is the second post asking the same thing and my response is the same - what is it you aren’t getting from Quickbooks that makes you wonder if it is enough?
My concern moving forward (I’m in manufacturing) is that we’ll need a more powerful ERP system to manage the transfer of information. I’ve heard that it’s quite possible to use QB alongside these ERP systems, though…? Unsure how good/realistic it is to do that and I’d guess like anything else, there’s no one-size-fits-all answer
I previously worked at a manufacturing company doing high 9 figures of revenue.
They used Netsuite, which is now Oracle Netsuite as their Accounting and ERP.
It was reasonably priced back then and did 95% of what more advanced ERP systems used, but wasn’t owned by Oracle yet, so it might be ridiculously priced now that Oracle owns it.
If you’re going down the path of an ERP system, you probably need to hire expertise to manage it.
It’s likely cheaper to hire a CFO and then deal with a transition to an ERP when you are closer to needing it.
Woof… welcome to the world of ERP systems. What kind of information needs to be transferred?
Avoid premature optimization. QB is pretty dang powerful and most importantly, understood by pretty much every single accounting and finance person.
What type of manufacturing, and roughly what revenues?
A good ERP will tell you a lot more about your costs/efficiencies than QB can. But you need to be absolutely 100% confident that your ERP will be the right fit for your business. Might be worth it to use a consultant to give recommendations.
If you’re in high speed manufacturing or packaging, an environment with actual production lines/conveyors, then I would instead invest in performance monitoring software before ERP. IMO it cannot be overstated how valuable that kind of info can be for understanding your efficiencies.
Worximity, Decide4Action, and Redzone are a few options that I’ve seen/used in the past.
I’m seeing a lot of QuickBooks answers. Is there a point where you might switch from a smaller player like Freshbooks or Wave and move to QuickBooks?
QBO or Xero is fine. I much prefer Xero though.
- accountant who manages a team of bookkeepers.
Xero is slightly better than quickbooks. However US businesses prefer qb. It’s up to you. I advice hire good bookkeeper than doing yourself. Ping me if any questions. Happy to guide.
Definitely Quickbooks for general bookkeeping, and Bill.com for outbound payments anywhere besides the US
I use Quickbooks for both of my companies.
Outsource bookkeeping to someone good, it’s worth the investment in having clean books.
sage comes in handy
My company does bookkeeping for ecom companies.
Most are within that revenue range.
95% are on quickbooks and the other 5% are on xero.
No problems at all.