A business is a well-oiled machine filled with various components that make it perform. Yet sometimes those parts start to wear out and break down over a period of time.
For many startups, QuickBooks is the perfect resource for their financial needs. It’s simplistic architecture and functionality provides you with the right accounting tool in the moment.
Yet what happens when your growing business starts to outgrow it? Here are some potential signs you might need to change your tools.
1. Trouble closing out the month
Closing out the books at the end of the month shouldn’t be a difficult ordeal. If your staff is taking much longer to get everything in order, something is preventing that.
Once this become a repeat problem over time, it will become noticeable. If it’s not your accounts, or any other aspects, the technology you’re using appears front and center.
2. Over-complicated Financial Management
Any financial tool you have is supposed to be easy-to-use from the very start. So what happens when you’re using multiple Excel spreadsheets to document your account activity beyond QuickBooks?
If your staff is resorting to Excel to document complex transactions, there’s a serious problem. QuickBooks provides a simple structure, yet can’t handle huge amounts of information over time.
For the developing business, this can be challenging as they attempt to handle everything at once. If Excel becomes the location of much of your financial information, it’s a major issue.
Similarly, QuickBooks is a very manual-oriented piece of software. Entering in all of the required data can become a process in its own right.
As a result, your staff ends up spending more time entering in information than they do on their regular tasks. The result is a disorganized workplace with everything being shuffled around to compensate for lost time.
3. Limited Financial Visibility
One of the core things any business must have is financial visibility. Without this, it’s impossible to execute any major decision with certainty.
You and your senior management need to know what’s happening at all times within the company. Every factor must be considered to ensure that you’re not operating blindly.
One of those key areas is the financial aspects that correspond to your performance. Without first-hand knowledge, any major decisions are potentially damaging if executed incorrectly.
How much critical information is present through your financial data can impact your decisions. QuickBooks generates a lot of data but can be extremely limited in highlighting potential problems. If your Accounting staff is having trouble keeping track of everything, this will manifest in multiple ways.
Let’s say you’re trying to record a salesperson’s sales, the industry they cater to and items sold. The basic tools in QuickBooks won’t be able to record the complex elements you need to configure.
As mentioned, many turn to Excel spreadsheets to document each of these specific aspects. This will make it harder to ensure visibility and determine the right course of action.
If you can’t decide based on the financial data you’ve seen, you’re operating in the dark. A place no business owner wants to find themselves when making critical decisions.
The ERP Remedy
For those frustrated with QuickBooks, an Enterprise Resource Planning (ERP) system can provide the right support. ERP programs have a wide range of tools which can handle the financial and accounting needs for your company. Rather than continuous frustration, this is replaced by a much stronger foundation.
This will allow you to input more complex information, without limits or any special program requirements. Specified data elements will be available without being spread across separate files and systems.
For those frustrated with heavy manual entry, ERP systems offer the option to automate different financial processes. This reduces the time previously allotted, allowing for better completion of your regular tasks.
If you’ve been frustrated with low financial visibility, this can be remedied. The ease of access allows for no one to be out of the loop from what they need. Providing the right knowledge when it’s needed by your business.
Put together, an ERP system provides the right benefits in easing your financial and accounting woes. The result is a better-managed business, able to tackle the challenges it faces and compete effectively within its industry.