5 Limitations of QuickBooks for Growing Companies

Despite its popularity as a small business tool, QuickBooks has a lot of limitations for a growing business that needs advanced functionality.

Many small and medium-sized businesses start with QuickBooks in their company’s early days as it is a popular entry-level accounting solution. In addition, it provides basic functionality that companies with a simple business model can use to take off.

However, the majority of companies soon realize that the initial value of this tool comes with a lot of limitations and restrictions that make it useless in the long run as they start to grow or start to integrate more complex business processes. Here are the most important QuickBooks limitations for growing businesses.

QuickBooks’ Top Limitations for Growing Businesses

Limited number of users and file size

Since QuickBooks is designed for small businesses, it has limitations on the number of users or files it can handle at one time. Performance is affected when dealing with large transaction volumes or when many users are working on the solution at the same time. After a certain limit is reached, users report slow performance and random crashes, which makes this problem annoying for growing companies.

Difficulty adapting to new business requirements

From new business requirements to meeting compliance regulations, your financial management solution must be able to adapt to new changes quickly. Businesses must be able to track and show transaction history and make changes if necessary. However, QuickBooks users find that they are only allowed to change the record by selecting a single transaction. Therefore, auditors who monitor stringent regulatory requirements are challenged by this limitation.

Lots of manual data entry

QuickBooks was developed to automate a limited set of key accounting functions. Most companies do not integrate QuickBooks with other business software and manage the integrations manually instead. While this works for small businesses with small data volumes, this is not possible when the business is growing. Employees often get stuck re-entering data manually from one system to another – resulting in human errors and wasted time and effort.

Poor review path

Among the main concerns about this tool is its audit trail. Business owners and accountants prefer to have a comprehensive and well-documented flow of financial information. With this kind of financial insight, they can better make informed, data-driven decisions. However, many basic accounting software, including QuickBooks, allow any user to log in and edit statements without restrictions or an audit trail. If the changes are not calculated correctly, this can lead to problems down the road, resulting in inaccurate numbers or skewed data.

Financial Vision Limited

You need to see your financial statements in real time if you want to make accurate and timely business decisions. QuickBooks doesn’t have any dashboards (just sample reports), so visibility is limited. Companies end up making decisions about old data.


QuickBooks is a cost effective solution if you are a small business just starting out or have very simple business operations. However, a growing business or mid-sized companies will require more advanced financial functions and performance visibility for long-term success.

If you’ve outgrown an entry-level accounting solution or are looking for a business management solution that can scale your business as it grows, Microsoft’s cloud-based Dynamics 365 Business Central It is a solid choice, and is designed for small and medium-sized businesses. It’s a comprehensive solution that connects all your financial data, sales, services, and operations under one platform so you can streamline your business operations, boost financial performance, and deliver exceptional customer experiences. For a full feature comparison, you can check out my previous blog post, “QuickBooks vs. Dynamics 365 Business Central.

Find out if the D365 Business Central is right for you.

If you would like to learn more about Dynamics 365 Business Central or explore whether it is a good fit for your business, contact the Kwixand Solutions team. we Dynamics 365 Business Central Partner Headquartered in Vancouver, Canada, we help businesses across North America transform and thrive with Dynamics 365. Contact us directly at [email protected] or 1-604-256-5800. Alternatively, you can Book a free consultation here.

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