High volumes of transactions, reporting, and operations in several locations have forced companies into such difficulties that they seek better enterprise-level solutions.
Accounting software such as Quickbooks, Xero, Wave, and Freshbooks are ideal solutions for small businesses; they are relatively cheap, and using it will be easier compared to any other alternative. As businesses scale, the need for them is far greater than that provided by these software programs. High volumes of transactions, reporting, and operations in several locations have forced companies into such difficulties that they seek better enterprise-level solutions. The latter options, which are designed to provide services and cater to such scale and complexity needs, are NetSuite, Workday, or Microsoft Dynamics 365.
This article examines why businesses grow beyond small business accounting software, the shortcomings they experience, and the benefits of moving up to enterprise-level solutions.
Starter Accounting Software Cannot Meet New Requirements
QuickBooks is designed to meet the most simple accounting requirements of small or startup businesses. However, for businesses operating on high volume transactions, several entities, and international locations, the architecture of QuickBooks would not suit them well.
One of the very first problems companies experience is performance degradation as the database grows in size. QuickBooks slows down, crashes often, or even worse, results in data corruption. It might be a real headache and disrupt day-to-day activities. Also, a business usually finds that QuickBooks falls short in reporting capabilities. It provides some basic financial statements and tracking but does not deliver the kind of analytics or custom reporting needed to guide strategic decisions in a more significant organization.
Another significant limitation occurs in multi-entity or multi-location businesses. QuickBooks does not consolidate data from different subsidiaries, locations, or currencies very well, which creates additional manual work and increases the risk of errors. Similarly, the limited integration options of the software often lead to data silos, where different departments or systems cannot exchange information seamlessly.
QuickBooks may also be lacking for businesses operating in heavily regulated industries or those requiring heightened security measures. Its security features are basic compared to enterprise platforms, making it more challenging to ensure compliance with complex regulations or to safeguard sensitive data effectively.
Outgrowing QuickBooks is a clear sign of the success and growth your business is experiencing. That being said, the amount of effort it takes to implement an enterprise software solution should be outweighed by many benefits.
The Need for Enterprise Software Solutions
As a business grows beyond the capabilities of QuickBooks, it requires software that can scale to accommodate its growth and increased operational complexity. Enterprise solutions such as NetSuite, Workday, and Microsoft Dynamics 365 are high-end applications developed specifically to overcome the constraints of entry-level applications like QuickBooks.
One of the greatest advantages of enterprise software is its scalability. Such platforms are designed to manage high volumes of transactions, complicated workflows, and complex organizational structures without performance issues. This allows businesses to continue growing without ever having to worry about outgrowing their accounting system again.
The other important features of enterprise platforms are reporting and analytics. Businesses can get real-time, customized dashboards, detailed financial forecasting, and consolidated reporting for multi-entity operations. This supports informed decisions and enhances financial visibility.
Another important benefit is integration. Unlike QuickBooks, which usually requires workarounds to integrate with other important systems, such as CRM, human resources, inventory management, and e-commerce platforms, enterprise software integrates well with other critical systems. This interrelated system reduces redundancies, improves data accuracy, and increases efficiency overall.
Enterprise Software in Action
NetSuite
NetSuite is an all-in-one cloud ERP system covering accounting, CRM, inventory management, and e-commerce functions. It offers a set of features such as automation of revenue recognition, multi-entity management, and real-time financial reporting that makes it popular among businesses needing a complete solution to cater to the growing needs of their business.
Workday
Workday focuses on financial management and human capital management, which is perfect for organizations looking to integrate their financial and HR functions. Advanced budgeting, forecasting, and workforce planning make the system more effective for business needs.
Microsoft Dynamics 365
Microsoft Dynamics 365 is highly adaptable to businesses’ diverse needs, as it offers modular ERP and CRM capabilities. It is fully integrated with the Microsoft ecosystem, including Office 365 and Power BI, providing advanced analytics and enabling businesses to customize their operations for maximum efficiency.
Preparing for the Transition
Moving from QuickBooks to an enterprise platform is a major undertaking and involves much planning. Transition begins with determining your business needs. Assessing factors such as volume of transactions, reporting needs, and integration goals determines which features are most important for the business.
Once you’ve outlined your needs, it’s time to evaluate potential solutions. Research platforms like NetSuite, Workday, and Microsoft Dynamics 365, comparing their features, scalability, and costs. Engaging stakeholders from finance, IT, and operations teams ensures alignment on the new system’s goals and expectations.
The migration of data is another crucial step in the process. In conjunction with implementation experts, data can be mapped and transferred without a glitch. This ensures a minimized error and downtime. However, equipping your team is just as vital. A new system is quite daunting; thus, providing detailed training and after-care will equip your employees to get up and running on the platform, hence fully exploiting its capabilities.
Post-implementation, the system needs to be monitored for performance. Feedback from the users and areas for improvement should be identified to ensure the platform continues to meet your changing needs.
Conclusion
Platforms such as NetSuite, Workday, and Microsoft Dynamics 365 provide the scalability and functionality needed to support those growing organizations, allowing them to operate more efficiently and make better decisions.
Contact Applied Accountancy today if your business is ready to move forward. Our team of experts can help you assess your needs, select the right platform, and implement a tailored solution. Let us guide you through this transformation and set your business up for long-term success!
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