QuickBooks has long been a go-to accounting software for small businesses, providing a streamlined platform to manage financial data, process transactions, and generate financial reports. However, as businesses grow and expand their operations, they may find that their QuickBooks solution is no longer equipped to handle their growing needs. If you’re in this situation, you should consider switching to a more comprehensive ERP accounting system.
In this article, we’ll help you determine if you’ve outgrown QuickBooks and highlight the benefits of making the switch to an ERP like Acumatica Cloud or Sage 100.
Signs You've Outgrown QuickBooks:
If you’re a small business owner, you may have started with QuickBooks Enterprise, Quickbooks Online, or Quickbooks Pro as your entry-level accounting software. But as your business grows, you may find that QuickBooks is no longer meeting your needs. Here are some signs that you’ve outgrown Quickbooks and that it may be time to upgrade:
1) Managing Multiple Entities and Locations:
If you have many entities and locations, QuickBooks may not be able to handle the complexity of your financial data. ERP Systems can consolidate all of your data and provide a more comprehensive view of your business.
2) If your Annual Revenue is Over $1 Million:
QuickBooks is an entry-level accounting software and lacks some capabilities required to efficiently manage a larger business with annual revenue over $1 Million dollars.
3) Need for Advanced Reporting and Financial Visibility:
QuickBooks may not provide the advanced reporting and financial visibility that larger businesses require. New ERP systems offer customizable reporting and financial dashboards to give you a better understanding of your business.
4) Quickbooks Software Limitations
QuickBooks limits the maximum number of user licenses you can have for your business. Another big limitation is the data file size you can upload. If you’re hitting those limits, it’s a sign that you’ve outgrown QuickBooks and its limited functionality is hindering your business development.
5) Time-Consuming Manual Processes:
If you are spending a lot of time on manual processes such as data logging, it may be time to switch to software that can automate those processes for most companies.
6) Scalability Issues with Inventory Management:
QuickBooks may not be able to handle the inventory management needs of a growing business. An ERP can provide advanced inventory and order management capabilities to help you track inventory across multiple locations.
7) Outdated and Unsupported QuickBooks Versions:
Using an outdated or unsupported QuickBooks version can put your financial data at risk. ERPs provide a more secure and up-to-date solution.
8) Multiple Currencies and Languages:
If your business deals with multiple currencies and languages, QuickBooks may not be able to handle the complexity. There are solutions that provide multi-currency and multi-language capabilities.
Are you finding that your growing company is starting to outgrow the most popular small business accounting software? Many QuickBooks users have found themselves in a similar situation as yours.
While QuickBooks is a good small-business accounting software for many businesses, it may not be the best solution for companies with complex needs like multi-company transactions that only advanced software can help. As your organization expands and core processes become more complex, it’s essential to have a robust accounting system that can keep up.
Benefits of Switching from QuickBooks to an ERP
Even with QuickBooks Enterprise, you may find that your organization’s data files and sales data quickly outgrow Quickbooks capabilities. Just like businesses eventually have to upgrade from Excel spreadsheets and journal entries, at some point Quickbooks users need to transition to a more advanced solution.
That’s where enterprise-level accounting solutions like Sage 100 or Acumatica come in. They are designed to handle complex financial operations and growing company needs. Your accounting department will be able to manage multiple entities, consolidate financials, and automate monthly close processes.
Switching from QuickBooks to an ERP system can provide several benefits for your organization and your growing business:
1) Robust Financial Management and Data Analytics:
ERPs can provide companies with more robust financial systems and data analytics capabilities to help them make informed business decisions.
2) Advanced Inventory and Order Management:
Advanced inventory and order management capabilities help you track inventory across multiple locations and improve your supply chain management.
3) Single Source of Truth for Improved Decision-Making and Accelerated Business Growth:
Enhance your business decision-making abilities by utilizing a single source of truth. It enables access to more extensive, real-time financial information and advanced financial reporting features.
4) Streamlined Operations and Improved Productivity:
By automating manual processes and streamlining operations, your company can save time and improve productivity.
5) Scalability for Growing Businesses:
An ERP can grow with your business and provide a scalable solution that can handle your own growth and changing needs.
6) Automated Processes and Reduced Manual Tasks:
Reduce the time spent on manual data entry and automate processes to improve efficiency.
7) Manage the most intricate Financial Management Responsibilities.
Handle more complex accounting needs such as multi-entity consolidation and inter-company sales transactions.
8) Seamless Integration with Other Business Management Software:
ERPs integrate with other business management software, such as CRM and HR software, to provide a more holistic view of your business.
9) Customizable Reporting and Financial Dashboards:
Customizable reporting and financial dashboards give you the ability to monitor key performance indicators (KPIs) and track progress toward specific business goals.
Tips for a Smooth Transition from QuickBooks to an ERP:
1) Understand Your Business Needs and Goals:
Before you start the transition to enterprise resource planning, it’s important to understand your business needs and goals based on your current system limitations. This will help you choose the right solution and vendor that fits your business requirements.
2) Choose the Right ERP Solution and Partner:
Do your research and choose a vendor that aligns with your business goals and objectives. Look for an experienced ERP Consulting company like Kissinger Associates that has been offering ERP services like implementation, training, and ongoing support to business owners since 1985.
3) Plan and Prepare for the Transition:
Create a plan and timeline for the transition. Define roles and responsibilities for your team members, and make sure everyone is on board with the plan. Prepare your financial data and make sure it is ready to be imported.
4) Train and Educate Your Staff on the New System:
Make sure your staff is properly trained on the new system. A good ERP partner will provide training sessions, resources, and support services to the finance team to help them learn how to use the new system effectively.
Transitioning from QuickBooks to Acumatica
QuickBooks Online is primarily designed for small businesses and may not have the functionality or scalability that growing companies need.
Ultimately, the right accounting software for your business will depend on your unique needs and goals. However, if you’re outgrowing QuickBooks and looking for a more robust accounting solution, Acumatica Cloud is an excellent option to consider. With Acumatica you can streamline your financial processes and position your business for continued growth and success.
Acumatica Cloud is a powerful and flexible ERP software that can help businesses overcome the limitations of QuickBooks. Here are some steps to take when transitioning to Acumatica Cloud:
1) Choose the Right Acumatica Partner:
Choosing the right Acumatica partner is critical to a successful transition. Look for a partner that has experience with QuickBooks to Acumatica transitions and understands your business needs and goals. Our team has a lot of experience in this exact scenario. Contact us to get your transition started and avoid implementation pitfalls!
2) Plan and Prepare for the Transition:
A successful transition to Acumatica requires careful planning and preparation to avoid growing pains. This includes defining your chart of accounts, migrating your data, and setting up your accounting and inventory management processes.
As your business grows, QuickBooks may no longer meet your needs. Upgrading to an ERP like Acumatica or Sage 100 can provide you with robust financial capabilities, advanced inventory, order management, improved decision-making, and the streamlined operations you need to manage growth effectively.
If you’re considering upgrading to an ERP, it’s important to work with an experienced partner who can guide you through the transition process. At Kissinger Associates, we have years of experience helping businesses like yours transition from QuickBooks. Our team of experts can help you assess your business needs, choose the right solution, and ensure a smooth transition. Contact us today to learn more and take the first step towards more efficient and effective financial management.