Are You Still Stuck Entering Data Into QuickBooks By Hand?
Are you still entering data into QuickBooks the same way as when you started your business?
Writer William S. Burroughs said “If you are not growing, you are dying.” If you do things the same way every day for years, your business may be dying without you knowing. Your business stagnating could be the first sign of a decline. Fortunately, you don’t have to wait until you run out of cash to cover payroll or until you cannot take on new customers due to staff shortage to turn things around. There are earlier other warning signs that can help you realize that it is time for a change.
We recently polled hundreds of business owners and accountants and 75% of them are still entering data manually into QuickBooks. You can get by with this approach if you have very low order volume. However, it’s impossible to grow and scale your business if you rely on manual data entry. Manual data entry not only slows your business down, but it also has hidden costs that drain your finances, overwhelm your staff, and lead to poor reviews.
Many business still need to enter data into QuickBooks by hand because their automation is not working. We created a checklist so you can easily evaluate and compare different solutions and choose the one that is best for your business.
Signs that you need to a a new QuickBooks automation
Just one of these signs is an early warning sign that your business is losing money every day. If you recognize more than one of these signs, you are probably stressed about your business workflow and cashflow. Some owners have been able turn their businesses around by automating menial tasks and freeing up their time to work out critical business problems.
Sign #1: You or your staff are always behind on data entry
The company Bare Bones Broth had such a high demand for their product that they were unable to keep up with their QuickBooks manually. Their Operations Manager installed a QuickBooks automations so they could have the necessary information to make good business decisions. Without automation, the owners of Bare Bones Broth didn’t know how much cash or inventory they had. A QuickBooks automation not only helped them to have peace of mind, but it helped them to grow from a small operation to selling their products in Whole Foods.
Sign #2: You don’t know which products or selling channels are most profitable
As you can see in our checklist, business owners lose money on selling channels when they don’t have accurate reports in QuickBooks. It’s not enough to have a QuickBooks automation. You need the right QuickBooks automation to make the right business decisions.
Sign #3: Your QuickBooks is missing critical information such as refunds and merchant fees
Many QuickBooks automations only sync over basic information about orders. You need to deduct refunds and merchant fees need from the total revenue so you don’t pay unnecessary taxes. Merchant fees vary by selling channels (i.e. they are different on Amazon vs. Shopify), and if it has been challenging to enter them accurately into QuickBooks by hand, an automation could help.
Sign #4: You never know how much inventory you have on hand and you overstock or oversell
If your automation does not track inventory you will need to do a lot of data entry manually. In addition, you will need to overstock inventory to prevent oversells. Overstocking ties up your cash (and can lead to spoilage for perishable), while oversells lead to refunds and poor reviews. If you cannot keep up manually with changes in your inventory, consider an automation that syncs your inventory between QuickBooks and your ecommerce platforms.
Sign #5: You are manually cutting and pasting shipping information
You may have an automation that sync your selling channel to QuickBooks, but not you shipping tool. Our customer Plus-Plus USA, did all their shipping and order fulfillment manually when they started their business. As their orders grew, it became impossible to cut and paste hundreds of orders into emails between different teams. Once they implemented automated data entry into QuickBooks, they were able to become one of the top 25 fastest growing companies in South Carolina.
Sign #6: You are still entering data manually
One of our customers, a business owner, was spending 20+ hours a week manually entering data into QuickBooks. The automations she had did not support her workflow, and she hired several data entry people. However, she never had enough staff because of the high turnover. Your business cannot grow if you spend half of your work day manually entering data into QuickBooks.
Sign #7: You are afraid to take on new customers because you are afraid to scale
We notice anxiety among business owners during the holidays (link to article) due to the anticipation of high order volume. If you are worried about too many sales, it is a sure sign that your business cannot grow with the current infrastructure. We recommend considering all the touch points between an order being placed and shipped out, and see how you can simplify. Installing a better QuickBooks automation could be the key to handling large order volumes with ease.
What Are the Next Steps If You Recognize Any of These Signs?
Any time your company changes there will be imbalance. Specifically, when your sales increase, you may struggle to fulfill them on time or keep enough inventory in stock.
The first step is to clarify what are the “symptoms” that are holding you back from scaling. Most businesses have an inefficient workflow that worked when the business was launched, but is unsuitable for scaling.
Once you identify your biggest pain point, you can brainstorm with your team about how to reduce it or eliminate it. Many businesses are able to scale when they simplify: fewer products, fewer touch points, and fewer target customers.
Automating as many tasks as possible can also help you to simplify your workflow and free up more of your time. You can automate responses to sales leads, responses to customer inquiries, or your bookkeeping.
We find that businesses that automate their bookkeeping have have better cashflow because they can make business decisions almost in real-time. They also have fewer errors in their books, and don’t need to tie up their inventory with overstocking.
If your business is ready to look for a better QuickBooks automation, download our checklist here.
Connex’s QuickBooks automations works for most businesses who sell on Shopify or Amazon, or use ShipStation. If you would like to find out whether Connex is a good fit for your business, click on the button below to contact sales.