The debate on which is superior between ERP and QuickBooks is a never-ending discussion. While QuickBooks focuses on your accounting department, ERP focuses on all company functions, including accounting. Since both effectively streamline company operations, most business owners are unsure which system to implement.
Instead of choosing, why not consider using QuickBooks with an effective ERP system? This article explains how these two systems differentiate and how integrating them will benefit your business.
What is QuickBooks?
QuickBooks is a popular accounting software ideal for small businesses that helps manage income and expenses. It helps keep track of the financial health of your business while facilitating customer invoicing, preparing taxes, paying bills, and generating reports.
Businesses benefit from several solutions by implementing QuickBooks accounting software. However, it would help to note that QuickBooks is limited to accounting functions and neglects other company core functions. You may need an ERP solution to tie company financials to other company functions.
What is Enterprise Resource Planning?
Most businesses implement ERP software in their operations to manage and integrate the core functions of their companies. All company processes run on a single system, promoting teamwork and department collaboration. Other benefits of ERP include free flow of communication, a centralized server, and accurate, real-time data availability.
Is QuickBooks Also ERP?
QuickBooks is accounting software, not ERP software. However, most individuals confuse it with ERP since it works to streamline company operations. ERPs are company-wide systems, while QuickBooks is limited to accounting functions.
The three main versions of QuickBooks are Desktop, Desktop Enterprise, and Online. They are accounting software packages that lack the broader range of business functions delivered by ERP.
What are the Differences Between ERP Software and QuickBooks?
Since ERP and QuickBooks are separate software, their implementation processes differ. It is common for ERP Software to be more complex and time-consuming to set up, as it pulls together data from multiple departments. The complexity of implementation and installation may intimidate small businesses if they don\’t enlist proper onboarding support.
QuickBooks offers a simple and straightforward way of streamlining your accounting function. Despite not getting the same breadth and depth of features as ERP, QuickBooks provides a quicker setup and effortless operations.
Automation is standard between ERP and QuickBooks; the difference is the complexity and comprehension offered. The automation delivered by QuickBooks is limited to your accounting functions and the number of users.
ERP automation handles more complex functions and spreads to the whole organization. Prominent companies find ERP systems more effective at providing comprehensive automation features.
ERP offers more customization options than QuickBooks. You can find different ERP software designed to meet specific business needs, from manufacturing companies to service industries. The customization options for QuickBooks are few and limited to a particular function.
The functioning capacity between QuickBooks and ERP is another difference worth considering. QuickBooks best suits small businesses with limited needs and less data to handle. Established companies with complex operations should consider ERP solutions to streamline their functions.
Why Use QuickBooks with Enterprise Resource Planning?
Implementing an effective ERP solution means you can manage more complex functions as your company\’s needs and demands grow. It is the modern way of doing things and eradicates the use of traditional approaches like spreadsheets. Your ERP system helps to ensure accurate details in all company records, including accounting.
QuickBooks is also a practical approach to streamlining company operations, but it has its limitations. Unlike in ERP, you get less flexibility. Most do not know that you can integrate an ERP solution into the existing financial management system.
Integrating the two platforms means adding advanced ERP features to your existing QuickBooks software. By doing this, your company enjoys many joint benefits without requiring a re-education of the accounting team. Some of the benefits of using QuickBooks with Enterprise Resource Planning include minimizing labor costs, increasing the efficiency of financial operations, and eliminating errors.
Here is why you should consider integrating QuickBooks with an ERP system for your business:
Track Financial Performance
One of the key reasons you need to implement ERP in your financial management system is to improve how you track financial performance. Since QuickBooks focuses on your accounting function, it provides a deeper look at your financial performance.
Introducing ERP means you benefit from accurate data from all operations. ERP extends to all departments, from payroll, materials, maintenance, and equipment. You get to see how your business is performing holistically and what your next steps should be.
Both QuickBooks and ERP play significant roles in managing expenses and revenue records. While your QuickBooks makes creating invoices and quoting easy, ERP handles everything else. This combination includes sending invoices, bank reconciliation, and automated reminders. Creating, distributing, and tracking company invoices becomes effortless when using both platforms in tandem.
ERP solutions emphasize a centralized database to streamline company operations across departments. This centralized database includes your company\’s accounting information synced with QuickBooks software.
Integrating the two platforms requires synchronization of the information in QuickBooks to other business applications and databases. Your purchasing department will easily access past invoices from the centralized database without disrupting the accounting team.
Data Sharing and Export
If you do not want to shift from working on QuickBooks but want to streamline operations, you should consider an ERP integration. Integrating the platforms allows you to import data from QuickBooks to different software for specific functions. Reporting can become more robust and relevant.
Data sharing also becomes more manageable as ERP ties the company\’s financials to the rest of the company. Accessing business information remotely also becomes possible. If employees want access to specific information, they have access to the server and can download it.
The advantages of implementing both QuickBooks and Enterprise Resource Planning are too numerous for you not to consider in your company. GoldFinch ERP, for example, adds advanced features to your financial management system, significantly improving workflow and operational efficiency.
Are you interested in learning more? Ready to get started? Chat with one of our ERP experts today!