Economic uncertainty is worrying financial leaders across industries, and getting the most accurate picture of your finances has never been more important. When it comes to planning for the near future, including tariffs, budget pressure and market fluctuations, are you prepared to weather the current economic storm?
Most small to mid-size businesses rely on QuickBooks or other limited functionality solutions like Xero, FreshBooks or Sage Business Cloud Accounting to meet their basic business system needs. Indeed, these are cost-effective approaches to invoicing, payroll and bank reconciliations. But if your organization requires more advanced financial management to navigate these difficult times, this might be the year to move on from bare-bones accounting software.
If your growth equation includes streamlining business functions for better decision-making and stronger financial management, it may be time to consider an enterprise resource planning (ERP) solution. Are any of these challenges hampering your financial future?
- Data silos and poor data visibility
- Risk of errors and inaccuracies
- High operational costs and inefficiencies
- Lack of financial forecasting
- Compliance risks
In this blog, we discuss the most commonly used accounting solution, QuickBooks, and when the time is right for an upgrade.
Why QuickBooks?
QuickBooks is a go-to solution for small organizations who recognize the risks and inefficiencies of running a business on siloed spreadsheets. The straightforward accounting software platform records and tracks general ledger data and streamlines basic processes.
QuickBooks enables small finance teams to efficiently manage simple processes like accounts payable and receivable, basic financial reporting and straightforward general ledger entries. But from there, things get tricky.
Accurate general ledger data is essential for organizations at every level. But QuickBooks wasn’t purpose-built for the more advanced financial management practices that growing organizations need. More sophisticated financial reporting, cash flow management, inventory management, revenue recognition processes and the like are often beyond QuickBooks’ capabilities and must be handled outside the system. In addition, QuickBooks does not allow for audit-proof controls and separation of duties, something most growing companies require. These limitations lead to increased expenses, time-consuming manual labor, poor visibility into financial data and a lack of audit-readiness.
Moving to an ERP solution like NetSuite will help address these shortcomings by integrating and streamlining core business functions. But it’s a big step. How do you know when your organization is ready?
Five Signs it’s Time to Move Beyond QuickBooks
- Economic uncertainty requires advanced financial tools. Changing global markets, tariff uncertainty and investor hesitancy are all changing the economic outlook at a daily, or even hourly, rate. Relying on QuickBooks, which requires manual data entry and has limited financial reporting capabilities, is not going to enable your organization to weather the impacts of global market uncertainty. NetSuite helps automate key accounting activities, reducing errors and saving time, and allows for the sort of sophisticated financial reporting needed in uncertain times.
- Increasing operational complexity. Organizations eventually reach a point where systems and processes require more management than QuickBooks can provide. For example, an ERP system like NetSuite offers growing manufacturing and field service management companies inventory management, sophisticated equipment costing, demand planning, order management, field scheduling and more to address rising operational complexity.
- A need for stronger controls and financial management. Reducing errors and mitigating risk is important for every business, but growing organizations require advanced processes for greater control. The more moving parts there are, the more financial data is impacted—often processed slower and less accurately. QuickBooks lacks the functionality to streamline workflows and automate processes, which is a requirement for strong financial management. A modern ERP system such as NetSuite allows for robust approval processes, strict segregation of duties and automation of routine, error-prone processes with the kind of ITGC and SOX reporting available that is required by both internal and external auditors.
- Organizational complexity and consolidated reporting. Companies with multiple subsidiaries need consolidated financial reporting—particularly if these subsidiaries exist outside of the country you are headquartered in—and QuickBooks cannot account for situations like these. Instead, reports are manually compiled in spreadsheets, creating monthly nightmares for the finance team. NetSuite allows for automated, simple and accurate intercompany management and consolidated financial reporting, even if your company operates across multiple countries and in multiple currencies.
- Readying for IPO. No matter how far into the future an IPO might be, you’ll need strong financial management if going public is the plan. Detailed financials, often tailored to industry-specific standards, are required to raise money and pass a pre-IPO audit. In addition to the controls outlined above, NetSuite makes GAAP-compliant and customized financial reporting quick and easy, with a clear audit trail to back up the numbers at both a subsidiary-specific and consolidated level.
For a real-life example of how SquareWorks consultants helped biotech firm Abcuro replace their legacy QuickBooks with NetSuite, check out this case study.
The NetSuite Advantage
When you’re ready to move to a robust ERP system, NetSuite may be your best choice. A leading integrated cloud business software suite, NetSuite delivers comprehensive and centralized management of your business processes to power strategic decision-making. It includes business accounting, customer relationship management (CRM) and e-commerce features. It is also well-suited for manufacturing and distribution companies, offering robust inventory control, manufacturing process oversight and cost accounting features. Companies choose NetSuite for increased visibility of real-time data insights, enhanced controls for federal, state and local regulations and automated processes for improved productivity.
A Quick Guide to Implementing NetSuite
NetSuite is a big, ongoing investment. But with a high price tag comes vast functionality and the potential to gain tremendous business value. Too often, organizations underestimate NetSuite’s complexity and struggle to harness the software’s full potential. ROI isn’t realized; frustrations mount.
If your organization is looking to make more strategic financial decisions with the advanced capabilities offered by a robust ERP like NetSuite, contact us here to learn more about how SquareWorks can make your NetSuite implementation as easy as possible.
