If you’ve made it this far, I assume you’ve done your research on QuickBooks alternatives and are thinking about buying inDinero. So the next logical question is, “how does QuickBooks compare to inDinero?”
Great question, self! The difference between QuickBooks and inDinero is a topic we run into frequently in our conversations with founders. Outside of those conversations, there’s no shortage of blog articles, Quora posts, and side-by-side reviews attempting to provide answers as well.
Let’s settle the question for good.
What are the Differences Between QuickBooks and inDinero
If you’re considering which accounting solution is the right fit for your business in 2019 and beyond, the first thing you need to know is this: QuickBooks and inDinero are totally different, and built with different users in mind. It almost doesn’t make sense to compare the two.
QuickBooks is do-it-yourself bookkeeping software for business owners who have the time and experience to manage their own books. Decades since its initial release, it’s safe to say that QuickBooks has become the bookkeeping standard. The software has remained ubiquitous for several reasons: it’s user-friendly, it includes the basic features bookkeepers need to do their jobs, and—perhaps most noteworthy—it’s cheap.
inDinero, on the other hand, provides accounting and tax software, plus all the financial services you need to grow your businesses. We manage your books and help file your taxes, but we also offer CFO guidance–like financial planning and analysis–as you need it. Our solution scales with business growth, from seed to exit, and is built to meet Generally Accepted Accounting Principles—the form of money management investors and auditors require—rather than just bookkeeping.
Remember: bookkeeping and accounting (especially GAAP-compliant accounting) are not the same thing. All accounting solutions, including inDinero, take care of bookkeeping, but no DIY solution (like Quickbooks) can offer proper accounting or unbiased, expert financial planning to help you make the right investment decisions. With inDinero, we make it easy to get the advice you need, your dedicated finance is a simple chat or email away with our cloud-based platform.
Now, there’s nothing wrong with QuickBooks. Business owners who use it certainly save money on bookkeeping in the short term, and if you’re not looking to grow your company, the software can do the job. But QuickBooks alone isn’t a good fit during periods of expansion, fundraising rounds, investigations, or any other moment in the business lifecycle that necessitates strategic and methodical accounting. It’s definitely not the right solution for an executive who has a fiduciary responsibility.
Another potential downside of QuickBooks is that users need to spend a lot of their time using the software rather than running their businesses. Moreover, they don’t benefit from a team of experts who can suggest tax credits and deductions and advise on financial matters. Finally, business owners who manage their own books can and do make recordkeeping mistakes that could lead to costly legal issues.
When you use inDinero, you get everything you’d pay for with QuickBooks, as well as detailed financial statements, forecasts, investor reports, insights, and expert guidance- plus you don’t need to pay for 3rd party products for invoicing, billpay and employee reimbursements, —all supported by a team of accounting and tax professionals.
When Should You Upgrade from DIY Accounting Software?
The answer to this question, of course, depends entirely on your company’s structure and circumstances. That said, the following milestones are ideal moments to upgrade:
- You’re hiring your first employee
- Your expenses are creeping toward $15,000–20,000 per month
- You’re poised to grow soon and don’t want to waste your time on administrative tasks when you could be focusing on expansion
- You’re raising funding
- You’re looking to ensure tax compliance to safeguard your business against surprise penalties and fines.
In addition to the milestones above, there are certain signs to look out for. A big one is how you’re spending your time: meeting with clients, programming your app, developing your services… or managing your books? If your growth is suffering because you’re dedicating too much time to your bookkeeping, it’s time to seriously consider moving on.
Another indicator is your sense of certainty—or, rather, lack thereof. Would you feel comfortable showing your financial statements to an investor or potential business partner? How about an auditor? A prospective buyer?
What’s the Right Option for You?
To determine what option is right for you, consider the signs mentioned above, and then think about your plan for the future. In five years, do you expect to remain at your current size? If so, it makes sense to continue paying the $5–$25 per month (assuming prices don’t increase) for QuickBooks. If you plan on growing, however, you should use an accounting service like inDinero. Subscription prices may be higher up front, but your return will far outweigh the investment by using data to make smart growth decisions, getting funded faster, or avoiding costly transition fees (upwards of $30,000 according to tax expert Cameron Keng) to GAAP-based accounting or to fix reporting mistakes.
In other words, there’s no shortcut to financial preparedness; you’ll need to pay for it at some point. On a more positive note, your upfront investment will pay for itself—and then some—thanks to smart money management and tax guidance.
Ultimately, inDinero is built for companies looking to grow. For small, mom-and-pop-shop businesses, Quickbooks can be a great solution. Some owners are comfortable chugging along at their company’s current size. Others are entrepreneurs seeking to transform a startup into a multimillion- or billion-dollar firm. We’re built to help those entrepreneurs bring their dream to reality.
Which kind of CEO should use QuickBooks, and which one should use inDinero? I’ll let you answer that.