QuickBooks v. Microsoft Dynamics Business Central: The Battle for Business Supremacy
The most mundane business functions would not be possible without powerful software powering the process. Laypeople can take it for granted, but companies are always looking for the best accounting and financial reporting software so that the “behind-the-scenes” aspects of running a business stay on track. Today, we want to look at two of the most popular accounting software products, QuickBooks and Microsoft Dynamics Business Central, and see how they stack up against one another.
One of the most popular and long-running business software products is known as QuickBooks. This is a product owned by Intuit, and it used to go by the more straightforward name “Quicken” when it was first introduced in 1993. For many companies, it is the default program they prefer to use simply because they are already familiar with it. However, this may or may not make sense based on the size of the business and its growth trajectory at this time.
Great for Starting Out
The attribute that QuickBooks is most frequently complimented on is that it is easy to use and used across many organizations. In some circumstances, it can be easier to send documents back and forth. Additionally, it has a less steep learning curve than many other accounting software products, which is part of its appeal to many owners.
When a company is just starting out and still has just a small number of employees and vendors, it is probably best to keep things as simple as possible. After all, why would you want to make things overly complicated for yourself right out of the gate?
Advantages Over Microsoft Dynamics
Although it is easy to take a swipe at QuickBooks and categorize it as only good for a business that is just starting, it is fair to say that it has a leg up on Microsoft Dynamics in two critical areas. These are:
- Integrated Payroll – Incorporating your payroll into the other aspects of your budget is critical for accurate reporting. QuickBooks is the ideal accounting software product to do exactly that. You need not worry that your payroll expenses are not accounted for. If you have QuickBooks, all that information can be rolled into the system to make your life easier.
- Payroll Processing – Part of having a team of employees is that you must pay them on a set schedule. This means payroll processing is an integral part of getting employees paid. QuickBooks is still favored over other accounting software options because it makes processing payroll much more straightforward than many other products on the market. Keep this in mind before you completely discount QuickBooks from consideration.
Where QuickBooks Falters
QuickBooks has plenty of critics, and for good reasons. It simply can’t do everything that one may need it to do. Encorebusiness.com explains one reason why it may not be the best solution:
Despite its strengths, QuickBooks is still generally considered a piece of accounting software for “micro-businesses.” This means it lacks the full range of options many SMBs and growing companies require.
A company that has outgrown the status of “microbusiness” will need some additional firepower to help manage everything on its plate. Since it is the goal of all businesses to grow beyond micro-sized eventually, you can understand why QuickBooks may not be the best solution.
Also, some users have complained of:
- A lack of robust security protections
- Less than ideal audit trails
- Not enough reporting options
In other words, QuickBooks is the starter program that can work for a brief period when running a business, but it is not to be trusted to help manage the needs of a rapidly scaling enterprise.
Microsoft Dynamics Business Central
While QuickBooks may be where many entrepreneurs are just starting to turn to, Microsoft Dynamics Business Central is where real entrepreneurs look for their accounting software. They understand that they must have a more robust program to serve them well.
Microsoft says that its product has roughly 800 features that QuickBooks does not. They pack a lot of value into the product they have to offer, showing up in what they can produce. Even better than that is the pricing situation.
You pay just $70 per month for the Microsoft Dynamics Business Central product. That compares to a price tag of up to $184 per month for certain variations of the QuickBooks products. That is a big difference, and it shows that there is truly a lot of value in using Microsoft’s products over QuickBooks.
Microsoft Dynamics Strengths
Let’s look at what Microsoft Dynamics can offer in terms of strength over the competition. First and foremost, it has a far more robust audit trail than QuickBooks or other products offered to businesses across the country. The reality is, Microsoft knows that business leaders need to be able to draw firm lines from Point A to Point B concerning everything that they do within their accounting software. Thus, they have included several helpful features, such as:
- The ability to see open purchase orders within the accounts payable system
- Get salesperson performance data within this software (better employee accountability)
- Use Power BI to fully connect the data you have to a complete reporting solution
There are so many more valuable facts and figures within the Microsoft Dynamics system that you don’t get with QuickBooks. We know how important data is in our modern economy, so Microsoft Dynamics is leaps and bounds ahead of the competition in many respects.
The only real drawback of this product is that it may not be appropriate for a business with 5 employees or fewer. It has too many features and data collection to prove useful for a small team. For micro-sized companies like that, it may be best to stick with the least expensive web version of QuickBooks until your company expands.
For more information on the benefits and downfalls of these two business software products, don’t hesitate to contact us for the latest information.