Outgrowing QuickBooks: Securing the go-ahead from the C-suite

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Categories: Acumatica Cloud ERP, ERP, Replace old software
July 30, 2019
Outgrowing QuickBooks

Throughout the C-suite, you may have individuals who are skeptical of a software upgrade. This is especially true if the executives have never been part of an organization that used a solution beyond QuickBooks.

In the move from accounting software to Enterprise Resource Planning, it’s incredibly likely that you will face pushback, distraction, or other challenges. It’s an exciting time for your organization (you’re growing), but it can also be a stressful one (you’re about to embark on a major software project). These two competing factors often present challenges. However, if you can take the right steps leading up to an implementation, you will save yourself time and headaches.

Following our previous blogs documenting the warning signs and communications initiatives you should take on your path to fully-functional Enterprise Resource Planning (ERP) software, we would today like to explore a couple of the hardest and most crucial steps on the journey: Securing executive buy-in.

Pitching the investment: Securing executive approval for an ERP project

Companies start out with QuickBooks for a variety of reasons. It’s familiar for users and makes it easy if you choose to outsource your accounting work. It gives your first few accounting users a reasonably functional accounting solution for small business needs. Small businesses could buy and implement the software in an afternoon.

Most importantly for companies just starting out, however, is that it’s insanely affordable. As an accounting software, it’s not meant to do everything an ERP solution does.

Accounting software like QuickBooks is affordable in the same way that a studio apartment is more affordable than a three-bedroom house. Both offer a roof and walls, but each serves a different purpose. ERP software is the three-bedroom house. It does more, is ready for growth, and ultimately provides more comfort and utility.

Challenges in securing executive buy-in

Selling the idea to executives is a challenge, however. While you may know the struggles faced by end users, the extra hours it takes to generate a basic report, and the frustration experienced trying to bring everything into a spreadsheet, when you’re trying to pitch someone who isn’t on the front lines, they may not see the same value in an ERP investment as you. This is especially true if the executives have never been part of an organization that used a solution beyond QuickBooks or worse, have seen an ERP project fail.

Throughout the C-suite, you may have individuals who are skeptical of a software upgrade.

For example, your CEO, known for his or her big picture ideas, may not use the accounting software. The CMO may have his or her own agenda and feel that the organization should look towards something for the front office before the back office. The CFO, responsible as the gatekeeper and steward at the organization, may not feel the investment is worth the cost.

Getting the C-suite on board: Different rationales require different tactics

While all of these individuals (and others) may be skeptical, they are also among the biggest beneficiaries of ERP. Selling each of these is a process.

Convincing the CEO: Readily available insights

The CEO may not use accounting software. However, he or she would benefit greatly from real-time, customized dashboards that can present exactly where the company is. No more asking for a report and waiting hours or days to see it. Simply log in and see the big picture metrics.

Selling the CMO: Integration makes everyone’s job easier

The CMO might feel that the sales and marketing departments should be the top priority when it comes to business management software and think ERP is just fancy accounting software. Not the case. Today’s ERP includes or is designed to integrate with CRM, inventory, and business intelligence tools.

With accounting standards like ASC 606 impacting the entire company and requiring increased attention to the way contracts are managed, alignment between finance and sales will become an imperative. A simplified quote-to-cash process and easy performance obligation tracking will save the entire organization time.

Facing down the CFO: Improve finance productivity and satisfaction

While in many cases, the decision to move from accounting software to ERP is made by a CFO looking to make finance better equipped for company growth, sometimes you still need to do a bit of selling. In recent years, the role of the CFO has continued to evolve, and as the company grows, the responsibilities will continue to add up. CFOs are moving into operations, risk management, and more.

Now, rather than being the head accountant and chief of the ‘no department’, the CFO needs to increase visibility, control, and decision-making—three things ERP is known to help with. Added to this, the move to ERP Is going to save time for many people in the organization, including the finance department. With a current talent shortage in finance and accounting, a move to ERP will result in fewer late nights at the office and more satisfaction.

Informing the CIO: More security, less scud work

Another person who may be a driver of an ERP decision, the CIO may also be the person pushing back against a software change. The most likely of the group to have read an ERP implementation horror story or to have experienced failed software implementations previously, getting the CIO on board is either incredibly easy or annoyingly complicated.

Whether there’s pushback against the cloud or against the risk that comes from a complex software implementation, the CIO is another one to benefit from the move to ERP—especially in the cloud. Inherently more secure, cloud ERP will reduce the risk that the IT department faces. Added to this, cloud ERP is designed to reduce the amount of maintenance that the IT department has to accomplish, making for less time spent troubleshooting servers or hand coding and maintaining integrations.

Reel in the buy-in: Take time to talk ROI

While you may have everyone on board with the benefits of upgrading from QuickBooks or any other entry level accounting software, if you’re not talking about the costs associated with the benefits, you’re just pitching a pipedream. This is where ROI comes in.

Justifying a large expenditure requires estimating the cost of the investment, from licensing and implementing it to training users and maintaining the system. Cost (and timeframes) can be gleaned from your ERP vendor. The total cost is then weighed against the benefits of a new system.

Whether it’s in the form of reduced costs, better access to business opportunities, or improvements to employee and customer satisfaction, the decision to implement ERP often presents real, measurable benefits for your company.

In addition to the measurable financial benefits of a move to cloud ERP, you likely can present additional benefits—both tangible and intangible:

  • Improved customer satisfaction with faster response times
  • Increased data analysis and visibility for better decision making,
  • Improved employee productivity through more comprehensive and intuitive workflows.
  • Centralizing documentation online for constant availability of a single source of truth
  • Minimizing Accounts Receivable days outstanding

Calculating ROI should be done at a couple points in the ERP decision, but to get a high level overview of the benefits (without sending out for quotes from vendors), this free calculator from Acumatica will help you to understand the value of making a move to ERP, comparing it with your current expenditures. Simply enter a couple numbers about expenditures today, and it will help you to understand whether a move is beneficial.

Outgrowing QuickBooks: your next steps

When you begin to outgrow QuickBooks, you are facing one of the most exciting challenges that exists. It means that your business has grown and you are ready for a solution that can take you to the next level. NexTec helps organizations just like you to move beyond QuickBooks and into a more robust accounting and ERP software designed to meet the needs of your business today, tomorrow, and ten years from now.

For our growing small and mid-size (SMB) clients, we recommend Acumatica, a solution that features flexible deployment, scalable resource-based pricing, and the functionality and usability you need. We invite you to learn more about our work, compare QuickBooks to Acumatica using this helpful tool, and contact us to discuss your needs and learn more about your next steps.

Additional QuickBooks migration resources

Is QuickBooks quick enough to keep up with your growing business?

Outgrowing QuickBooks: The early stages of communicating a change

Outgrowing QuickBooks: Securing the go-ahead from the C-suite