So your financial tracking needs outgrew the capabilities of Quickbooks accounting software? For many this popular accounting software is the backbone of our financial reporting but we quickly discover limitations when we realize we need more than QB can offer. The manufacturing industry sees the limitations most vividly when they begin to expect their software to manage not only their cash flow but also provide reports and projections around their inventory, delivery and cost history.
Any business that wants to track inventory – retail, distribution, service companies that stock parts like plumbers and HVAC – will quickly learn the shortcomings of this program. Considering that Quickbooks does not do reoccurring transactions well, most subscription based businesses will need to implement work-arounds to make the software fit their business needs.
Quickbooks’ premise to manage the flow of money for your business functions well for many small and service focused businesses because you can see what comes in, what goes out and how close you are to your budget and goals. For many businesses, especially those in manufacturing, the delivery falls short. Businesses need a more comprehensive program that helps them see where they’ve been and where they are going. Companies often default to buying additional software and manually entering in both locations, hoping for ease of use and low manual errors – but there is a better way.
Consider this: Quickbooks lacks a solid inventory tracking program. Manufacturing often works with pieces and parts to make the whole and this gets tricky for typical accounting software. If your widget requires five pieces to assemble and your pieces can be used in more than one assembly, the tracking of inventory can quickly become inaccurate and your cost per piece ends up incorrect.
- Quickbooks can’t hold inventory data
- Quickbooks can’t adjust numbers for quantities on hand
- Quickbooks can’t track purchase orders
A better solution: Customized ERP software goes beyond cash flow. ERP software is designed to allow for better planning of delivery and timing with real-time numbers of product on hand. The right program will easily show the number in stock, the number in route and the number on order. This more in-depth software program provides flexibility regarding setting prices based on last, average and first orders rather than relying on manual overrides as prices and costs fluctuate.
- ERP Software can handle payroll and labor tracking
- ERP Software can integrate your inventory management, shipping and delivery and materials billing
- Customized ERP software provides for cost history
Every businessman can agree that nothing stays the same and change is inevitable. If you recognize that your costs and expenses will fluctuate and you implement the right software to manage the details of your daily process, your business is better equipped to accurately project future earnings.