You need an enterprise resource planning or ERP accounting system to ensure smooth financial data flow across your company. It improves your accounting department’s capacity to create precise financial reports and helps you understand your business better.
While QuickBooks can meet your current needs, it may not be able to keep up with your company’s growth. An ERP accounting system can help you manage all assets on one platform.
All of this beg the question–is QuickBooks an ERP software?
Keep reading to discover the differences between QuickBooks and ERPs. It will help you understand why an ERP accounting system is better.
What Is an ERP System in Accounting?
ERP system in accounting provides financial data insight that improves financial productivity and reduces costs. As such, more companies use ERP systems. In fact, the global cloud ERP market is estimated to generate$47,760.01 million in revenue by 2028 at a 17.10% CAGR.
An ERP system in accounting also helps estimate capital needs and cash management. It helps create budgets, allocate costs for labor, raw materials, and transportation, and manage payments.
You can also leverage your ERP system to improve cash flow, credit management, and revenue tracking. Plus, track profits, invoicing, cost analysis, and budgeting.
More importantly, an ERP system helps you automate processes.
With an ERP system in accounting, you need not worry about your business outgrowing the system—ERPs are scalable.
Is QuickBooks an ERP System?
No, QuickBooks is not considered an ERP system software.
QuickBooks is a financial suite that can help you manage your accounts receivable and payable. It also tracks and reconciles your bank accounts.
Meanwhile, accounting is only one of the functionalities of an ERP. While you can do ERP integration with QuickBooks, expect to incur more costs.
Difference Between QuickBooks and ERP
So, what is ERP system software vs. QuickBooks?
Unlike QuickBooks, ERP systems manage all your company’s business activity on a single platform. ERPs integrate such data with your marketing, accounting, strategic planning, sales, and other platforms.
Startups benefit most from QuickBooks. Medium-sized businesses will need to integrate it with other applications. But beyond that, it’s no longer enough.
Indeed, there are ERP systems that integrate with QuickBooks to help bigger organizations. But such integration would be more costly than the early deployment of an ERP system.
Use popular ERP systems like Sage and Acumatica instead when starting your business.
Sage vs. QuickBooks
Sage ERP system is designed as a cross-industry solution with strong financial, distribution, and manufacturing functionality. It is ERP and WMS systems rolled in one. Meanwhile, QuickBooks targets small businesses with basic accounting requirements.
Sage 100 can handle files up to 2GB. QuickBooks handles only half of that. Besides, QuickBooks’ performance degrades with company file size.
Sage 100 can support 100 users simultaneously using the system. QuickBooks supports only 30.
Finally, when businesses outgrow QuickBooks, they need to implement a new ERP. Sage has tools to export and import data to fit your businesses needs.
|For a more in-depth comparison between Sage and QuickBooks, check out our guide here.|
Acumatica vs. QuickBooks
As an ERP and CRM solution, Acumatica goes beyond accounting. You get tools to manage all your departments’ tasks and processes. That way, data flows freely between departments.
Acumatica is also a true cloud solution. Its functionalities can be accessed online without additional software licensing. QuickBooks, however, is accessible online but is not a true cloud.
Multi-currency is possible with QuickBooks. Multiple businesses, however, lack support. Acumatica, meanwhile, is built for growth, offering multi-currency, multi-company, and unlimited users.
What Is at the Heart of Any ERP System?
ERPs are built to streamline your business processes. They provide a systematic approach to your business.
At the heart of any ERP system are unified data analytics. These analytics help the entire organization make informed decisions. They also provide scalability to adapt to organizational needs and assist in regulatory compliance.
Credit: Thea Ye
Benefits of ERP System?
The key to an effective ERP system is using one shared database for all departments and functions. As such, more companies are integrating cloud ERP market solutions.
Organizations are reaping the benefits of ERP inventory management systems and accounting systems. On top of that, they enjoy the following:
- Improved business reporting based on real-time data.
- Effective customer service due to easier access to client information.
- Improved order accuracy and on-time delivery.
- Stronger data and cloud security while maintaining only one data hub.
- Efficient and accurate business processes due to automation.
- Improved supply chain management.
ERP systems have wide applications for use. As a result, they can be used in a variety of industries.
Who Are the Primary Users of ERP Systems?
Traditionally, large enterprises with various operations and large budgets use ERP systems. However, market shifts have expanded ERP use. Now, medium and small organizations use ERPs too.
An ERP system’s basic functions include accounting, finance, customer relationship management, order management, inventory control, customer service, human resources, and more. Built primarily for businesses, ERP systems may also prove useful for the government and public sector, healthcare, human resources, and higher education.
ERP Accounting System Bests QuickBooks
Have you been asking yourself, is QuickBooks considered an ERP system?
Now you know it’s not. That’s also why an ERP accounting system bests QuickBooks.
Indeed, QuickBook works well for small businesses with basic accounting needs. But growing businesses may find it lacking.
All businesses intend to expand eventually. So, deploying an ERP when starting a business is more practical. This is especially true with cloud-based ERP systems.
If your small or medium sized business is looking to step up from QuickBooks to a proper ERP, Kissinger Associates has been deploying ERP systems for over 20 years. Contact us today for a quote.