Have you outgrown Quickbooks?
Many small businesses start out on Quickbooks, but at some point, you will outgrow Quickbooks and look for ERP (Enterprise Resource Planning) software to support your business.
What are some of the indicators that may be signaling you have outgrown Quickbooks? What are the pros and cons of moving to an ERP System. We will attempt to answer these two questions here.
You may have outgrown Quickbooks if one or more of the following apply:
It lacks the functionality to run your business smoothly without workarounds and/or manual solutions.
You are using multiple software systems due to the lack of functionality of Quickbooks, requiring double entry of data.
You are tracking processes off-line using Excel or other tools.
Your transactional load needs automation to keep up with your business demands and are currently being handled manually.
It does not lend itself to industry compliance requirements and/or standards.
You need functionality tailored specific to your business for legal, compliance, customer-driven or other reasons.
If any of the above points hit home, it may be time to start looking for an ERP software. ERP systems are fully integrated and will handle most of your business needs within a single solution. I say “most” because nothing is absolute and there is no single ERP software that does everything for every industry.
What are some of the pros and cons of an ERP System compared to Quickbooks? Let’s start with the cons. Note that some of the cons are actually benefits, although they may not seem so at first glance.
ERP systems are more complex than Quickbooks and will require dedicated training and user acceptance testing. This complexity means there will be a learning curve. This doesn’t mean that the system cannot be configured and sized appropriately to your business for easier user adoption.
ERP systems are more expensive than Quickbooks. Expect subscription fees and implementation fees to be higher than that of Quickbooks.
It takes good organization and a competent and dedicated team to properly implement an ERP system. Do it right and it will support your company in its expansion for years to come.
ERP systems properly implemented will enforce concepts such as “audit trails”, “separation of duties” and GAAP (Generally Accepted Account Principles) compliance. This means you cannot modify posted entries such as the date, etc. Quickbooks gives you quite a bit of leeway here. You will not typically see this “leeway” in an ERP system.
Depending on what you are trying to capture data-wise, an ERP system may require more data entry with the end result being better reporting to base decisions on.
Computerizing a process (where before it was loosely done or not done at all) requires discipline and a mindset change for staff.
Now, let’s look at the pros of moving to a full cloud-based ERP system:
Fully integrated ERP system encompassing most modules business require such as accounting, sales, CRM, inventory, purchasing, resource planning, projects, manufacturing, and more.
Access anywhere using a web browser.
May be integrated with other software using latest technologies available.
Support business specific requirements and tailor to your business as necessary.
Capture vital data to manage your business and report on outcomes.
Define, standardize and implement ideal business processes paralleled and supported by the software.
Increase efficiency by eliminating multiple data silos and double-entry.
Comply with legal requirements, best practices and principles.
As you can see, there are many positive benefits to moving to an ERP system when you are ready. Contact us to find out more how Microsoft Dynamics Business Central can support your business.