Are you starting to think you may be outgrowing QuickBooks but are unsure of your next steps? Hey, we get it. Experiencing significant growth while simultaneously meeting the inventory and business management limitations with QuickBooks is undoubtably a stressful experience – but many small businesses reach this point at some point or another.
In the first years of operating your own small distribution, manufacturing, and/or online retailing business, simple solutions like spreadsheets and manual processes may be all you need, particularly when keeping expenses low is a high priority, which is common when you are just starting out.
Once you pass the threshold of pass or fail, as many businesses do not make it past the first five years, and your business is ready to expand, QuickBooks is almost always the next step. With QuickBooks, you start to see significant error reduction, better automation processes, and for quite a while, a solution like QuickBooks Enterprise can provide you with every tool you need to manage your growing business.
But then comes a day where you start searching “outgrowing QuickBooks” and you realize, hey, something is missing; you are hitting limitations; you don’t think QuickBooks is enough. While you may have trepidation seeking either 3rd party solutions or an ERP system, you know taking the next step is key for continuing and maintaining steady growth.
We’ve identified 4 key areas of your business that could be signaling you are indeed outgrowing QuickBooks and it’s time for the next big step.
Outgrowing QuickBooks’ Inventory Management
- Limited traceability and recall management
- Lack of robust, cohesive barcode and warehouse management tools
- Limited cost method options
- Lacking multi-warehouse control
- Limited manufacturing capabilities
Outgrowing QuickBooks’ Order Management
- Lack of true advanced pricing
- No backorder management
- Multi-channel fulfillment that struggles with high-volume, complex orders
Outgrowing QuickBooks’ Operational Management
- Data and transactional limits
- Limited security and user permissions
Outgrowing QuickBooks’ Purchasing Management
- Lack of re-order management automations and tools
- Limited vendor data
- Limited purchasing management
Just because you are outgrowing QuickBooks doesn’t mean it’s time to leave QuickBooks!
Many growing small businesses that have come to the point you have reached often fall into the trap of thinking that the only other solution is an ERP. But for most, that is certainly not the actual reality.
According to a recent study by Technology Evaluation Centers, nearly 50% of all ERP implementations fail the first time around (and many opt out of a second trial), 30% of implementations take longer than expected, and 65% of the time budgets go over, sometimes costing 3-4 times more than expected, regardless of deployment.1
The truth is that the need for an ERP solution is not as great as ERP creators push their audiences to believe. Typically, when businesses near the $50 million and beyond revenue range, they often begin to seek an IPO, where complex, extremely detailed financial reporting is required. For small businesses that have moved into the $10-50 million range, the decision to leave QuickBooks and move to an ERP solution becomes murky.
3 reasons why staying with QuickBooks is better choice for your business than an ERP solution:
- QuickBooks has developed a very large community of 3rd party developers and apps. QuickBooks itself is designed for very specific purposes and knows its own limitations. The vast array of 3rd party solutions from which you can choose range from business function specific to industry specific solutions – there are really no limits to finding a 3rd party app you need when you’re outgrowing QuickBooks in areas like inventory, manufacturing, reporting, and so on. Check out all the apps available to you here.
- The average cost of an ERP solution could range anywhere from $150,000 to $750,000. Do you have the capital to truly fund this project, knowing that the pricing you are given up front could double or triple later during the implementation? Not to mention the cost of consultants required and the costs of re-training much of your organization?2
- The average implementation of an ERP solution can take anywhere from 18+ months to 2 years+ IF everything goes according to plan during the first go around. The disruptions to your operations will not be minimal, and unless you have a strong safety net in place, these operational disruptions could devastate your business.
Acctivate Inventory Software is an ERP-alternative developed to suit the needs of growing small businesses who find themselves outgrowing QuickBooks. With Acctivate, you can stick with QuickBooks while gaining access to the advanced inventory and business management tools you need.