March 25, 2020

Which Is Better, Gravity or QuickBooks?

Small Business
Ronald B. Allen

QuickBooks Desktop and QuickBooks Online are excellent bookkeeping software tools. So is Gravity Software. But, which is better, Gravity or QuickBooks? It depends on your needs. QuickBooks is generally considered the best bookkeeping software for small and medium-sized businesses. But, unlike QuickBooks, Gravity Software is designed for multi-entity businesses and multi-location inventory automation. It integrates your financial side with CRM through the Dynamics 365 platform. Both of these are excellent bookkeeping and accounting solutions for a wide range of businesses. The trick will be to know which one will be the best fit for your business now and as it grows. To make that determination, you need to know more about both Gravity Software and QuickBooks.

What Can QuickBooks Do for Your Business?

As a small to medium-sized business accounting software, QuickBooks is used to manage expenses and sales as well as record daily transactions. It generates custom reports that provide you with actionable insights into business operations. Businesses use this software to pay bills, generate invoices, file taxes, and lots more. It comes in a range of versions that start with basic bookkeeping functions and range up to a complete suite of accounting tools for a growing business. You can “test drive” any and all QuickBooks versions for free for 30 days.

Managing Income and Sales

Create invoices and track sales by customer. Your account receivable balances are always available in real time. And, you can easily pull up an aging report of accounts receivable as well.

Tracking Expenses and Bills

The online version of QuickBooks lets you connect to your bank and credit card accounts. Download information from your bank account to keep your records up to date. You can also pay bills online.

Doing Payroll with QuickBooks

Payroll can be a challenge, but not if you use QuickBooks. Not only is the payroll always done right but tax information is automatically recorded as well.

Inventory Management with QuickBooks

Use QuickBooks to manage your inventory in real time. With QuickBooks as your management tool, you will be able to cut down on excess inventory while always have enough of the “hot selling” items. You can efficiently organize your warehouse as well to avoid making repeated trips to the back to pick out frequent orders while at the same time bypassing items that have not sold in months. Save money and make money by using QuickBooks to manage your inventory.

Online Payments with QuickBooks

QuickBooks Online lets you bill and accept payments, all online. You can even use this software to apply finance charges!

QuickBooks and Software Integrations

Although QuickBooks can do a lot for your business, it does not have to do everything. For example, if you want to integrate business intelligence solutions like Spotlight Reports, you can do that with QuickBooks. Likewise, QuickBooks integrates easily with tools like VEEM for sending money or Receipt Bank for digitalizing paper receipts.

QuickBooks for Small and Medium-sized Businesses

The beauty of QuickBooks is that you can start with the most basic desktop version and work your way up the ladder to more sophisticated and online software as your business needs evolve. Thus, it is an ideal bookkeeping and accounting software for small businesses, growing businesses, and businesses in businesses from a health care practice to the skilled trades.

Are There Limits to What QuickBooks Can Do for Your Business?

The answer is, yes. QuickBooks is not set up to efficiently track inventory at multiple locations. It needs to resort to “workarounds” when generating reports from multiple business entities. There are unique needs in the world of high tech that QuickBooks was not specifically designed for. And, unlike Gravity Software, QuickBooks does not seamlessly integrate the CRM side of your business with the financial side.

What Can Gravity Software Do for Your Business?

Gravity Software is a step up from QuickBooks as scalable accounting software. Gravity Software has the capacity to run multiple business locations and multiple business entities off of the same database. This is a huge deal. And, it integrates your CRM functions with the financials, which is another big deal.

Gravity Multi-entity Accounting

As your business grows you may take over another business but leave it as a separate financial entity. When you have done this a few times, it can create an accounting nightmare for otherwise-excellent accounting software like QuickBooks. It can be terribly inefficient to deal with issues like shared expenses. And, many accounting software packages will require that you pay for a separate software license for each business entity!

Because Gravity Software™, AKA Gravity, allows you to set up many legal entities in one database, you are saving money on licenses right off the bat. The standard Gravity license includes the first five business entities for no extra charge. The first benefit of working off one database is that you are no longer doing duplicate entry of data, setting up spreadsheets manually in order to consolidate information, and then generating one report that will require the same tedious process each time you do it.

Real Time Information Across All Business Entities

It is a tedious process to pull information out of several separate-but-allied businesses and create reports but it can be done, and you may be doing it right now! The real problem is that in the modern, fast-moving world of business, bookkeeping and accounting results need to be available in real time. When all of your information is in the same database and constantly updated, you can see key information on a dashboard. This allows you to use business intelligence software like Microsoft Power BI in real time for making timely and profitable decisions. With Gravity you can look at information and generate reports specific to one entity or you can create integrated reports that reflect the synergies of all of your business operations.

Track Inventory at Multiple Locations with Gravity Software

Even if you do not have separate financial entities, you may well hold inventory in multiple locations. This presents the same problem for software like QuickBooks as does the multi-entity business. With all of your information in one database, you create real-time visibility of inventory issues that you never had before.

You can see your entire inventory in one set of data, broken down by location. And, you can apply inventory control measures such as LIFO, FIFO, weight average, and localized item costing (and pricing). You will be able to analyze your profit by location and have access to a full audit trail across all sites.

Gravity has a unique advanced pricing feature that lets you set prices and observe results by location, customer, item and type, and even units of measure. You will see the big picture of your products, improve cost-efficient “just in time” ordering, and maximize profits.

Coordinating CRM and Finances with Gravity Software

Gravity Software is built on a platform of Microsoft Dynamics 365. The ability to integrate customer service, marketing, sales, and financial information is a huge plus in the competitive world of modern business. You may make great products and provide great services. But, you need to relate to, deal with, and sell to your customers to make a profit. Using the integrated accounting and CRM software in Gravity Software, you can see the results of your CRM efforts in order to optimize your efforts and your results.

Technology Businesses Need Gravity Software

Tech companies deal with things like software-as-a-service, SaaS. Billing for these managed services can be difficult with software packages like QuickBooks. Gravity is set up to handle revenue recognition rules and billing for employees’ time. And, unlike some patched-together approaches, Gravity does this all in one integrated program. And, if you have more than one technology company, Gravity has that covered as well!

Which Is Better, Gravity or QuickBooks?

For a small business just starting out, there is no question that QuickBooks is an excellent choice. And, as a company grows, QuickBooks is very scalable with progressively more tools. When you choose to go online, QuickBooks Online is an excellent solution.

The points at which Gravity Software becomes the better choice are these:

• You hold inventory in multiple locations and have trouble managing it profitably

• Business operations involve multiple financial entities

• You need to better-coordinate your accounting with your customer relations issues

• Your tech company needs to more-effectively bill for employee time and deal with revenue recognition issues

So, depending on your needs, QuickBooks is an excellent choice for a beginning small business and remains an excellent choice for many businesses. And, when your business spans multiple financial entities, has inventory in multiple locations, needs to better-coordinate CRM and accounting, or is tech-focused, Gravity Software is the way to go.

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