6 Signs Your Company Needs New ERP Accounting Software

Your company is growing, and your small-business accounting software (hello, QuickBooks) or legacy ERP solution is no longer cutting it. But deciding if and when to invest in a new system can be difficult. Many small and medium-sized businesses limp along with their existing accounting software long after they have outgrown its basic functionality.

To help you decide if now is the right time to replace your current system, and understand the advantages of ERP accounting software over basic off-the-shelf solutions like QuickBooks, here are some of the clear signs that it’s time to upgrade.

Skip ahead if you know what you’re looking for:

• What is ERP Software?
• Signs Your Company Needs a New ERP
• Why is ERP Better than QuickBooks?
• Real-Life QuickBooks to ERP Success Story
• How to Select the Right ERP

What Is ERP Accounting Software?

Enterprise Resource Planning (ERP) works by combining all data, departments and processes into a single system. The result is streamlined operations and real-time insight into company-wide data.

How Does ERP Software Work?

An ERP solution operates using financial and accounting data as its foundation. All other modules – including inventory management, sales order management and embedded Customer Relationship Management (CRM) – are supplied with that financial data to carry out their jobs. Using this unified data to manage every aspect of your business allows you to perform more advanced processes, such as automated inventory reordering, by utilizing the most current and accurate information, like the availability of cash to spend on materials. It also insures that everyone in your organization is accessing the same data for strategic decision making, reporting, and forecasting.  

Signs Your Company Needs a New ERP

If you’re reading this article, you’re likely dealing with some of the issues below. One of the most difficult parts of deciding if it’s time to upgrade your current accounting and financial software is answering the “Why now?” question. If any (or all!) of these signs sound familiar, it’s probably time to start thinking about what’s next for your company. There is a cost to doing nothing. Companies that maintain the status quo too long run the risk of falling behind their competition and squandering opportunities for growth.

Sign #1: You’re Having Trouble Scaling Operations

Traditional accounting programs like QuickBooks or basic ERP software require extensive add-ons or manual workarounds to manage the higher volumes of transactions that result from business growth. This can lead to higher costs and limit your company’s ability to scale.

Sign #2: You’re Dealing with Siloed Data

Back in 2021, Gartner reported that poor data quality costs organizations an average of $12.9 million. Data silos are often unknowingly created when businesses implement separate systems to run different areas of their business. Silos occur when data collected by one of these applications cannot be accessed or used by other systems, limiting the visibility leaders need to make informed decisions.

Sign #3: You Don’t Trust Your Data

Human error happens, and when you’re using multiple software applications or manual processes to run your business, multiple data entry processes will undoubtedly create inaccuracies and make it hard for decision-makers to trust the data they need to make good decisions. Here’s an example: a manufacturing company relying on QuickBooks for accounting doesn’t have an integrated system in place to manage inventory. Instead, it uses manual spreadsheets or piecemeal solutions to track material reordering, materials on hand, and production scheduling. Because none of the company’s tools for managing inventory, accounting, warehousing and more integrate with each other, users are forced to enter data multiple times into different systems. Any time you have to manually rekey data, it increases the likelihood of errors and inconsistencies.

Sign #4: You Can’t Pull the Reports You Need

To make the best decisions for your company, you need access to the data that matters most to your business. Traditional accounting systems are limited in reporting size and scope. Medical device manufacturer DAS Medical was utilizing QuickBooks for its accounting. The company struggled to get the reports it needed, however. After implementing Acumatica Cloud ERP, DAS Medical gained quick access to the metrics and analytics that help it make strategic and timely business decisions – from cash flow prediction to inventory stocking to manufacturing planning.

Sign #5: You’re Running into Storage Limits

Many accounting systems limit the amount of data or records you can store at any given time, which forces companies to purchase additional storage or be highly selective about the data they keep.

Sign #6: Your Team is Spending Too Much Time on Workarounds

No two companies are exactly alike in how they do business. Legacy ERP solutions or accounting-only systems require third-party adaptations, add-ons, or software coding to customize the solution to meet your specific needs and work the way you want them to. This takes time and resources that could be spent on value-added tasks. If your team is spending more time on manual tasks and workarounds than on actual production, it’s a clear sign that your current systems or systems lack the flexibility and adaptability you need for future growth.

Why ERP is Better than Accounting-Only Solutions like QuickBooks

The biggest difference between basic accounting solutions and an ERP is the ERP software’s ability to manage all aspects of a business. While accounting software is great at managing a company’s financial data, ERP software includes additional functionality to automate key operational aspects of your business, from inventory to project management to sales and CRM. These value-added features make it possible for the information from those operations to flow into the ERP’s accounting module, giving leaders full control and visibility into how their business is running.

On top of this, ERP accounting software:

• Is often purpose-built with industry-specific capabilities to address key industry challenges.
• Is flexible and scalable, so as your business grows in size and complexity, your system will grow along with you.
• Comes equipped with role-based dashboards, pre-built reports and advanced analytics to give you access to the business metrics you need.

What is Cloud ERP?

Many companies come to us looking to upgrade their proprietary or legacy ERP or accounting software. That’s because even though their current system may have at one point been enough to manage their operations, on-premises software can become outdated fast. Cloud ERP, on the other hand, is maintained and updated by the ERP software provider and includes the most up-to-date functionality and features available.

Today, cloud ERP is the most popular deployment method for many reasons, including lower upfront costs, easier integration, better data security, and greater scalability. The ERP software is hosted in the cloud and then delivered via the internet as a subscription service.

The benefits of cloud ERP include:

• Superior data safety since cloud providers invest in world-class security measures and have teams of security experts on hand.
• Increased scalability and flexibility because there are fewer hardware or software limitations.
• Lower upfront costs as there is no need for a significant investment in hardware or software licenses.
• Greater collaboration and accessibility because workers can access the site from anywhere, at any time, on any device.

Real-World QuickBooks to ERP Success Story

DAS Medical (mentioned above) produces single-use drapes and surgical equipment covers for hospitals and medical facilities throughout North America. It is headquartered in Atlanta, GA, and has manufacturing facilities in the Dominican Republic. Back in 2012 when the company was founded, it implemented QuickBooks for accounting but quickly outgrew the system as it experienced rapid and significant growth.

The team at DAS Medical knew it was time for an ERP solution that could support its manufacturing, inventory control and Material Requirements Planning (MRP) requirements. It enlisted NexTec’s consultants to help with the ERP selection and implementation process and ultimately decided on Acumatica’s cloud ERP system. Since going live and upgrading to its new ERP solution, DAS Medical has been able to:

• Report on production data 50% faster than before.
• Increase the number of users utilizing the software.
• Keep stock at optimal levels.
• Substantially grow production volumes without increasing overhead.
• Ensure superior compliance management with robust financial controls and audit trails.

How to Choose a New ERP System

When you’re ready to start the ERP selection process, it helps to have a trusted guide. It’s easy to get overwhelmed, as the ERP market is filled with solutions that may seem similar on the surface, but are actually very different in terms of their capabilities, support structure, licensing models and feature sets. Choosing the right solution for your business is a critical part of ensuring success. Below, you’ll find tips on how to go about selecting a new ERP system and how an ERP partner can assist in the selection process.

Here’s some of the steps to take in selecting an ERP for your company:

Step 1: Assemble a Project Team

Start by establishing an internal selection team, ideally including key stakeholders who will be using the software every day. The team should be able to articulate the features, functions and other requirements that are needed for your company.

Step 2: Conduct a Needs Assessment

Identify the areas of your operations that would benefit from ERP software. Put together a formal needs assessment that determines the features and functionality required and long-term objectives of your business. This exercise should include an evaluation of your current tools and technology that may be eliminated after implementing a full-scale ERP solution.

Step 3: Research and Put Together a Solution Short-List

Researching the various ERP solutions on the market and how they compare. An implementation partner like NexTec can help you get started. Use the needs assessment from the previous stage to determine a set of criteria for evaluating ERP vendors. Criteria should include things like price, industry experience and overall fit. An extensive list of requirements and desired features organized by level of importance will also be helpful.

Step 4: Select the Right ERP

Once comparisons are made and results are analyzed, you should have a good picture of which ERP solution and implementation partner best matches your requirements. Don’t forget to ask for references and ensure that your preferred vendor has a solid plan for post-implementation support.

Feeling overwhelmed? That’s why certified ERP implementation partners and resellers like us are here. Leading ERP software provides trust NexTec to help companies like yours select, implement, and utilize their software to its fullest potential.

Ready to Take the Next Step?

Knowing when to upgrade to a new ERP accounting software system and what solution is right for your business is complicated. But as your business grows, it’s critical that you have the right tools in place to harness that growth, not hinder it. Be mindful of the signs it’s time you need a new ERP and if your company is struggling to stay productive, a new system may be in your future.

As one of the largest and most experienced ERP consultants in North America, we specialize in industry-specific technology for small and medium-sized businesses. For nearly thirty years, NexTec has helped companies like yours find the perfect Cloud ERP solution for your business. Our consultants are Acumatica and Sage X3 experts who understand your unique business challenges, speak your language, and are dedicated to providing clear information that will help you make an informed buying decision. If you’d like help selecting a new ERP system to help your business grow and thrive, contact us today.

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