Are your processes becoming complicated as you try to make QuickBooks work for your growing business?
If you have built your business using QuickBooks, you know it is a great entry-level accounting solution. When your company was small, the software required was minimal. But as you grow you find that your processes become more complex and this changes what you need from your business software.
Outgrowing QuickBooks is good news for the success of your business
Realizing that basic accounting software is no longer meeting the increasing demands of your business is a common experience. You realize that what used to work well doesn't anymore and there are other software options that can improve and automate your everyday processes. But how do you know if your business is ready to upgrade? Here we identify 7 common growing pains that businesses often face as they reach the software limits of simple accounting solutions.
7 signs that a company is outgrowing QuickBooks:
- Complexity - Your company has levels of complexity. This may surface as multiple locations, trying to manage goods with expirations dates, or needing more features and integration for order entry, inventory management, manufacturing, and/or service and repair processes.
- Inefficiency - Staff is bogged down with duplicate entry and manual processes in multiple systems. The company relies on workarounds to manage information making everything you do take longer than it should.
- Visibility - A lack of complete audit trail and data accuracy has caused a lack of confidence in the information reported.
- Data - Staff needs to manipulate multiple spreadsheets outside of QuickBooks that still fail to show real insight. Data needs to be managed on a department or division level for reporting, needs to be dissected into subsets, or needs to be managed per specific location.
- Customization - Without custom functionality, there's little room to automate processes or create customized reports and modules for improved business workflow.
- Flexibility - The company has multi-users in multiple departments with levels of management in between. This requires optimized reports and more robust and flexible job costing.
- Security - Internal security controls can't be easily changed. There's a need for customizable security settings and clearly defined roles for each user.
QuickBooks is simple; cost-effective, easy to learn, easy to use, and does not boast a lot of complexity. However, the simplicity of QuickBooks can easily become its biggest disadvantage due to a lack of features beyond basic sales and accounting. As a company grows and matures it is necessary to leave the limits of QuickBooks behind and take your business to the next level. For many, switching to a good Enterprise Resource Planning (ERP) solution is part of the answer.
What is the difference between QuickBooks and ERP Software?
Simply put, QuickBooks is mainly an accounting software used by small businesses to handle financials, but an ERP system is made to manage all assets and functions of your business, not just the financials. By switching to ERP, companies can expect to see operational improvements in these key areas:
ERP is designed to streamline processes, eliminate duplicate entry and remove unnecessary steps.
Consider the following: You're using Excel to create quotes or manage inventory, but then need to reenter the data into your accounting program. Or you're sending a printed work order out to the service techs to have them write down their information, and then having the office type that information back into the computer. In both these scenarios, you're spending an unnecessary amount of time on duplicate entry.
Aside from being costly, duplicate entry can be tedious and feel frustrating for your staff. A good ERP solution connects the data that is passed from department to department eliminating the need for dual entry, allowing your staff to focus on the projects that feel more meaningful.
From purchasing inventory and creating orders to pulling reports and recording payments, ERP software is built to improve accuracy by automating processes. The less you need to enter data, the less margin there is for error. Also, you may be able to eliminate costly mistakes by keeping costs and pricing correct.
For example: In a manufacturing environment, it's extremely important to know what your costs of production are in order to know your margins. Without automated processes, errors are easy to make and can cost your business hundreds (or even thousands) of dollars.
As tasks and details grow, automating and organizing all of your processes into one centralized database would enable your team to serve customers more quickly. And with more time the quality of service can improve as well.
A scenario: Joseph purchased a lawnmower for his landscaping business a few years ago and it now has broken down mid-season. He brings it into your sales & service company where he has had it repaired before. Because you use ERP software, your team can quickly see a complete history of the lawnmower and associated work orders, allowing them to make recommendations to Joseph about the repair of his equipment. If the mower requires extensive repair and is going to take longer than Joseph can afford to be without it, your salesperson has the visibility to know what stocked inventory is available for sale to recommend to Joseph so he can continue mowing lawns again immediately.
Quality customer service could be the difference between you and your competition. Utilizing a system that automates processes enables your team to offer the quick turnaround and quality service that your customers deserve.
Visibility and Decision Making
Consolidating data into one ERP platform allows managers to quickly pull a wealth of operational or financial reports to make facts-based decisions.
If you own a sales and service business you may find that the sales side of your business is very profitable, but that your service department is losing money due to inefficiencies. With full-picture reports at your fingertips you can quickly correct the problem in a timely manner.
Your managers and owners can have the visibility to know what is profitable, where they can gain efficiency, and quickly make decisions that will help grow your company.
As business transactions and processes grow, additional or customizable features are needed to manage areas such as inventory control, work orders, labor, manufacturing, job costing, and rentals.
If you're thinking about managing and tracking inventory, integrating financials with an eCommerce site, or even considering multiple business entities in your financial reporting, QuickBooks is no longer enough.
So, QuickBooks isn't cutting it; What should I do next?
Change is necessary for the healthy growth of any business. Don't let your software hold you back! Many of our existing clients have advanced from QuickBooks to our industry-specific ERP solution, Eagle Business Management Software (EBMS). EBMS supports all the same financial processes of QuickBooks while also bringing together project and work order management, Point of Sale (POS), inventory control, and much more.
Get Your Needs Analysis
Your business is growing beyond basic systems. We want to help simplify your processes with integrated business management software.
Contact Brian to discuss your needs and schedule a demo.
How does EBMS compare to Quickbooks?
Download the free comparison guide to see if EBMS is the right upgrade for your business
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