What are the main differences between QuickBooks and inDinero?
I saw inDinero featured in the September 2015 issue of Inc. and I was trying to figure out what makes them different than QuickBooks. I’ve used both QuickBooks Self-Employed and QuickBooks Small Business and they have worked fine for my needs. inDinero looks cool and the tools appear useful, however, the Inc. article said the monthly fees range from “3 to 4 figures” which seems a bit pricey, however, it appears that’s because they are a fully managed service (i.e. keeping the books and doing the accounting for you.)
Anyone have experience with inDinero? Can anyone comment on any other differences and how a business should go about picking between the two? Also curious why a small business would pick inDinero over hiring an accountant. All thoughts and experiences welcome, including any alternatives to QuickBooks and inDinero.
UPDATE: After searching the web a bit more it seems the biggest difference is QuickBooks is do-it-yourself and inDinero is fully-mananged accounting for small business. So my follow up question is “How does a business know when he/she is ready to transition from do-it-yourself accounting to fully-managed – either hiring internally or contracting externally?”
That’s an excellent question! The short answer is QuickBooks is DIY bookkeeping software for business owners who have the time and experience to keep their own books. It was originally designed as a much-needed alternative for accountants and bookkeepers who were keeping financial records by hand. inDinero is software + service for business owners who don’t have an accounting background or who are simply too busy to do their own bookkeeping. We manage our clients’ books for them, as well as their taxes and payroll. And our founder-friendly dashboard was designed specifically to deliver insights to busy entrepreneurs, rather than for use by bookkeepers or controllers.
This was such a great question, we decided to write a blog post about it. For the full answer please read the full post.
My rule of thumb is when your time spent on accounting/bookkeeping activity is disproportionate to your time devoted to growing the business, I’d say you should consider using outside expert help. Now the degree of time may vary but if you’re experiencing over 25%-33% of your time away from growing your business due to the back office stuff, you should consider the cost of going to a managed service, which can offer enhanced services as your business grows. The cost of time spent not growing the business is lost and can’t be made up. It may or may not be more than you’ll pay to have an expert take care of your books, but you have to make that evaluation via a cost/benefit assessment. Remember – you’re not in the business of recording transactions of the existing business, you’re in business to create value for existing customers while working to obtain new customers.