Should I Make the Switch From QuickBooks to an ERP?
For many small to midsize businesses (SMBs), QuickBooks is practically synonymous with payroll and accounting. For over 20 years, Intuit’s accounting software “for people who aren’t accountants” has been a popular alternative to hiring an in-house bookkeeper.
But just because QuickBooks and other out-of-the-box accounting solutions are familiar doesn’t mean they’re the best fit for every business. Whether you’re a decision-maker at an SMB or an expanding business operation, it’s important to consider moving away from limited accounting software like QuickBooks and exploring enterprise resource planning (ERP) solutions designed with the specific needs of your industry in mind.
QuickBooks Pros and Cons
QuickBooks is popular for a reason: It does a lot of things right. Accounting software packages like QuickBooks and its competitors are affordable, accessible and relatively simple to use. And to some degree, they can scale with your business as it grows. But the same qualities that make entry-level business accounting software so appealing become limitations after a certain point.
Of course, there’s more to business management than simply tracking your company’s revenue and expenses or organizing your financial information. And that’s where ERPs come into play.
ERP software provides businesses with all the accounting tools that solutions like QuickBooks do—such as invoicing, inventory management and reporting. But ERP software goes above and beyond basic accounting, by also integrating functions like supply chain planning, warehouse and production management, bill of materials management, materials requirement planning, and lot and serial tracking, among others. Essentially, ERPs can be customized to specifically meet a company’s needs and bring any number of business tools and software platforms together into one centralized hub.
Why Should A Business Transition to an ERP?
Most businesses move fast and often operates on tight margins. So, if you’re a business founder with a fresh license in hand, it might be tempting to start off using a simple out-of-the-box accounting solution.
We get it. Enterprise resource planning software isn’t as well known as, say, word processing software, graphic design suites or even customer relationship management (CRM) tools. ERPs might not even be on an entrepreneur’s radar in the early days at all. But business management solutions like ERPs are something that businesses are smart to use from the outset—or as soon as possible.
One thing many small to midsize business owners usually want to know is whether it’s worth paying for specialized software when out-of-the-box accounting solutions like QuickBooks are available. Truly, the answer is yes.
Software programs like QuickBooks weren't designed for industry. They don’t offer various safeguards and data collection functions that are critical to maintaining GAAP, Generally Accepted Accounting Principles. They don’t integrate with other business management tools that businesses must utilize, and they don’t record much of the data that will be asked for in an audit.
All told, relying too heavily on out-of-the-box accounting software puts companies at much greater risk of non-GAAP activities. Unfortunately, too many businesses only have the realization that they’ve outgrown QuickBooks after running into such problems.
ERP systems like Rockton Connect’s Acumatica are not only designed for compatibility with tools necessary to integrate with other best of breed applications, specific to industry verticals, but also Generally Accepted Accounting Principles (GAAP). Our ERP solutions aren’t plagued by the pitfalls found in many generic accounting software programs that make it easy to introduce errors around cash and crypto transactions—or for bad actors to make unauthorized changes in notation.
Recapping Accounting Software Limitations for Companies
They’re just for accounting. ERPs, on the other hand, include tools for accounting, CRM integrations, supply chain planning, warehouse and production management, bill of materials management, materials requirement planning, lot and serial tracking, and more.
They’re not designed for bigger or growing businesses. If your business needs intercompany accounting, is operating in multiple regulatory environments, or needs more than five users for on-premises or desktop applications (or more than 30 user licenses across different locations), QuickBooks isn’t going to cut it.
They have functionality gaps. As anyone who works in business knows, compliance is king. But QuickBooks wasn’t designed with the hyper-specific compliance needs of accounting in mind. Enterprises need additional oversight and features like robust audit trails and GAAP compliance.
When Rockton’s Acumatica debuted in 2008, it was designed specifically as a cloud ERP , and with the unique needs of small and midsize businesses in mind. Other ERP systems lack the robust scalability features, user dynamics and mobile capabilities.
If you really want to have full visibility across all aspects of your business, along with the peace of mind that comes from knowing you’re doing everything necessary to remain compliant, you can’t top Rockton Connect’s Acumatica and cloud ERP.