Running a business often means handling repetitive tasks like managing the supply chain, tracking inventory, or processing invoices. These tasks, while important, can eat up a lot of time and resources. That’s where technology comes in. Studies show that using AI automation can cut business costs by up to 20%, all while improving efficiency and productivity. Tools like these help businesses run smoother and focus on bigger goals.
One popular option is QuickBooks, a financial management software widely used by small and medium-sized businesses. It’s known for being affordable and easy to use, making it a practical choice for many. But does it measure up when it comes to supply chain management? Larger companies tend to choose ERP systems because they offer a more integrated approach, but for smaller businesses, QuickBooks might just be enough. How well does it really compare to an ERP system?
What is QuickBooks?
QuickBooks is accounting software created by Intuit, a company started in 1983 by Scott Cook and Tom Proulx. Intuit first became well-known for its personal finance tool, Quicken. Later, in 1992, they launched QuickBooks to help small and medium-sized businesses manage their finances more easily. Over time, QuickBooks has added more features, including cloud-based tools, to keep up with the changing needs of businesses.
QuickBooks is mainly used for handling basic financial tasks. Businesses use it to track their income and expenses, send invoices, manage payroll, create financial reports, and handle tax-related tasks. It’s popular among small and growing businesses because it’s simple to use and reasonably priced. Businesses that need more features can even choose advanced versions of QuickBooks to meet their needs.
What is an ERP?
ERP stands for Enterprise Resource Planning. It’s software that helps businesses manage lots of their operations in one place. Unlike QuickBooks, which focuses on accounting, ERP systems connect all parts of a business, including finances, inventory, human resources, manufacturing, and customer relationships.
An ERP lets businesses share and access information from different departments, helping teams work more efficiently and communicate better. It’s great for larger companies or businesses with more complex operations because it brings everything together in a single system.
Is QuickBooks Good as an ERP System?
QuickBooks is great for managing finances, but it’s not really built to work as a full ERP system. It’s designed for accounting tasks like tracking income and expenses, creating invoices, and managing payroll. ERP systems, on the other hand, help manage all parts of a business, including inventory, supply chain, HR, and customer management. QuickBooks can’t handle all these areas the way an ERP system can.
How to Use QuickBooks Like an ERP
Even though QuickBooks isn’t a true ERP, you can use it in ways that make it work similarly, especially for smaller businesses. Here are some ways to do that:
1. Add Tools to Expand Functions
You can connect QuickBooks with extra tools for things like tracking inventory, managing customer relationships (CRM), or running payroll. These add-ons give QuickBooks more features so it can do more for your business.
2. Use Detailed Reports
QuickBooks lets you create custom reports. These reports show you how your business is performing financially and give you data you can use to make better decisions.
3. Try QuickBooks Online Advanced
This version of QuickBooks has some upgraded features like automating tasks and detailed analytics. It can help you manage more parts of your business in a more streamlined way.
4. Sync It with Other Platforms
You can connect QuickBooks to systems like inventory or project management software. This way, you create a network of tools that work together, like a mini-ERP.
Is It Enough?
If you run a small business with simple needs, QuickBooks might be all you need. It’s easy to use, affordable, and can handle your accounting work well. You can also expand it with integrations for extra tasks.
However, if your business grows or your processes become more complex, QuickBooks won’t be enough. It doesn’t connect all parts of your business or offer the real-time collaboration that ERP systems provide. For larger businesses or those with more complicated operations, an actual ERP system would be a better fit.
Adding ERP Features to QuickBooks
If QuickBooks isn’t enough for your growing needs but you don’t want to switch completely to an ERP system, there’s another option. You can integrate an ERP system with QuickBooks. This lets you keep using QuickBooks for accounting while adding new tools to manage other areas of your business. For example, you can improve inventory management, streamline your supply chain, or organize customer data better—all while sticking with the accounting software you’re already comfortable with.
This combination is often a cost-effective way for businesses to grow without making big changes all at once. By integrating, you get more features and control without having to fully move to a new platform.
ERP Systems That Connect with QuickBooks
Here are some ERP systems that can work alongside QuickBooks to make your business easier to manage:
1. NetSuite
A cloud-based system that helps with finances, inventory, and customer management. Its integration with QuickBooks makes it good for businesses planning to scale up over time.
2. Acumatica
A great option for small and midsized businesses, Acumatica manages areas like inventory, project management, and distribution while working with QuickBooks for finance.
3. Fishbowl
This system focuses on inventory management and manufacturing. It syncs with QuickBooks to give you advanced tools like barcode scanning and production tracking.
4. SAP Business One
Designed for growing businesses, SAP Business One links with QuickBooks while offering expanded tools for managing operations.
5. Microsoft Dynamics 365
Known for flexibility, Dynamics 365 offers customer management and operations tools and connects easily to QuickBooks.
Bringing It All Together
QuickBooks has its limits, but it’s still a key tool for managing your business finances. It’s easy to use, keeps your accounts in order, and helps you stay on top of things. For smaller businesses or simple setups, it does a great job.
That said, as your business grows, you might find QuickBooks isn’t enough on its own. This is where adding an ERP system can make a big difference. By combining QuickBooks with an ERP, you get powerful tools to manage other areas of your business like inventory, customer relationships, and operations—all while keeping the accounting software you know and trust.
Working with both systems together gives you a smoother process and keeps everything connected. It’s a smart way to handle growing business needs and set yourself up for long-term success. The right mix of tools can make all the difference in running your business more efficiently and reaching your goals.