Enterprise resource planning systems: The next step for growing companies beyond QuickBooks
Many small to medium-sized companies rely on QuickBooks or similar software packages to manage their accounting and financial record maintenance functions. These are excellent solutions for early-stage companies, as they are built to be easy to install, flexible and used by non-accountants. However, as businesses expand, they often outgrow the functionality of off-the-shelf accounting software and require a more comprehensive solution.
Enterprise resource planning (ERP) solutions available through trained implementation firms are the next step for emerging organizations, designed to manage business operations as a whole, not just the accounting function. Improvements over software such as QuickBooks include a more secure audit trail function, a higher level of scalability and improved performance due to higher capacity.
Companies often begin to consider an ERP platform when the performance of their current solution begins to suffer, resulting in instability and declines in processing and reporting. Changes to the business could also demand a more functional system, as any new stakeholders may require more intricate financial data, and regulatory concerns could require the implementation of further controls.
Choosing the most beneficial ERP solution for your business and then successfully implementing it to realize its full capabilities is a significant effort, but it is a necessary exercise for growing companies. Continuing to utilize a software package that does not align with the needs of the business could have several adverse effects, such as limiting growth, system failure, fraud and inaccurate financial data.
For more information about when to consider an ERP system, as well as insights into system selection and implementation, download our new white paper Beyond QuickBooks: Choosing the right ERP solution for your organization.