@AdrianG001 wrote:
When it comes to QuickBooks, the revenue recognition principal was not a core concern during development. QuickBooks was designed as a book keeping system. Its appeal to startup companies is that it is affordable and provides the basic needs. However, for software startups that want to grow and expand, QuickBooks is not the solution.
Software companies that are focused on growth need an accounting system that supports their business. They need a solution that at least provides general ledger, accounts receivable, and accounts payable functionality. In addition, they may want to consider revenue recognition automation, GAAP compliant financial statements, centralized database, and Sarbanes Oxley compliance.
Is QuickBooks GAAP compliant? Not on its own. To be GAAP compliant, QuickBooks needs the help of additional spreadsheets or other systems. In the long run, this means additional expense in terms of other systems and additional manpower to properly track sales. Although QuickBooks may appear to be the cheaper solution in the beginning, it will cost more in the end and the great part is that still is the most loved accounting application which is used widely by accounting community.
Regards,
Adrian
Sr. QuickBooks Cloud Consultant
And just how do you think that QB is missing these key ingredients? Those of us rooted in QBDT since the last century have been utilizing these 3 exact tools all along. QBSE aside since it doesn't even qualify as a check register, only QBO Simple Start lacks A/P and to be sure, most mom and pop operations woudl not know what to do with the General Ledger report.
I had a client who entered all sales in JE, one for teh sale, and one for the payment, and then would reconcile the bank account, ON PAPER, and never in QB. That was an operation that should have had JE function turned off!
