Enterprise resource planning software (or ERP) fills in the gaps that a pure accounting solution like QuickBooks can’t manage. For growing businesses, especially those with plans to tap into international markets, more robust enterprise resource planning is needed, including warehouse management, inventory management, currency conversion, and more.
Most businesses utilize a dedicated accounting software solution like those offered by QuickBooks, Netsuite, and Xero for their financial management. On the production side, they employ ERPs for other business needs like managing their manufacturing capabilities. However, many businesses wonder if certain QuickBooks applications qualify as ERP systems and could potentially substitute for them.
QuickBooks could suffice for a small business with bookkeeping needs that would benefit from its ease of use compared to ERP solutions, but QuickBooks applications cannot completely replace ERP systems. We believe that Fishbowl offers the best QuickBooks-compatible inventory management solution. Teams can sync QuickBooks with inventory in one easy-to-use solution. Keeping accounting teams happy and warehouse operating smoothly.
Enterprise resource planning software includes accounting functions, which is why QuickBooks is often mistaken for an ERP system. However, this is only one way that ERP systems help businesses with their financial management and manufacturing functionality.
Other features of ERP systems include inventory management, customer relations, professional services, project management, commerce and e-commerce, HR management, risk management (including compliance), supply chain management, and more.
ERP systems tend to be versatile in their scalability, meaning they’re able to take on additional modules for new departments. This means that as your business grows and acquires a greater need for additional financial and management workflows, an ERP system can be expanded to meet these needs.
There are three types of QuickBooks applications: QuickBooks Online, QuickBooks Desktop, and QuickBooks Desktop Enterprise. The first two are dedicated accounting platforms designed to assist businesses with bookkeeping. The “enterprise” version includes some features that attempt to bridge the gap between QuickBooks and ERP systems.
So to answer the question, QuickBooks Online and QuickBooks Desktop are not ERP systems. In terms of inventory management and other e-commerce functionality, these versions of QuickBooks are only capable of processing information through the accounting department, including order processing dates, customer records, and accounting invoices.
These programs can be useful to small and growing businesses, but they lack the versatility of true enterprise resource planning solutions. As businesses expand, they often need functions not included in QuickBooks like, inventory management, warehouse management, and more.
That still leaves QuickBooks Desktop Enterprise, which was created to make up some of the difference. Unlike QuickBooks Desktop and Online, the Enterprise version includes more robust inventory management and pricing features. In some ways, this supplement for QuickBooks can bridge the gap between accounting software and ERP systems for small businesses. However, many ERP features are still missing from this version of QuickBooks, such as asset management and cloud-based services.
While accounting software like QuickBooks focuses on bookkeeping, ERP systems extend to other aspects of financial management and manufacturing functionality. Inventory and warehouse management are beyond the function of most accounting software, but ERP systems include versatile suites of tools that manage these processes while automating data collection relevant to manufacturing. This includes things like HR functions, payroll, database management, supply chain information, product information, and more.
The difference between the two systems is not limited to the features. Only an ERP system can account for differences relevant to your business’s industry niche while preparing your business for the latest industry guidelines and customer service standards.
For example, small businesses may manage purchases from a single storage location while larger ones may have multiple warehouses. You may have international customers, especially in e-commerce, necessitating tax changes and currency conversions. These needs can be easily customized for your business’s infrastructure with an ERP system while accounting software is the same in every industry and for businesses of every size.
In short, ERP software is a better solution for most businesses than accounting software alone, particularly those with a warehousing or manufacturing component. Thankfully, you can combine accounting software with ERP functionality using an integrated inventory management system like Fishbowl.
Businesses in any industry and of any size are welcome to explore Fishbowl to see how the software can bridge their QuickBooks accounting needs with advanced ERP functionality that can be efficiently scaled in pace with new business objectives.
Here are the benefits you can expect from using Fishbowl as a solution for QuickBooks + ERP.
Inventory data features
Accurate, real-time inventory updates are a necessity for modern e-commerce businesses. Using Fishbowl, you can break down inventory by commitment and allocation, automate reordering strategies based on preset conditions, and manage your inventory data in one place.
This includes inventory forecasting, which needs to be accurate to reduce the chance of stock outs as well as the costs of storing overages. Real-time visibility helps your managers assemble critical data on sales and inventory and combine it with your financial reports to make better decisions moving forward.
Manufacturing features
Accounting software like QuickBooks consumes inventory, but ERPs like Fishbowl can adjust product quantities and consumption in real time as sales orders come in. The difference is that your cash flow will never bottleneck at inefficient reordering strategies due to impractical inventory data.
In addition, ERPs can handle single and multi-level bills of materials while accounting software is usually restricted to one. When important business decisions often hinge on predicting inventory needs, smart purchasing decisions, and replenishment strategies prevent manufacturing bottlenecks.
User permissions
Growing businesses need to keep tabs on who has access to their accounting software for security reasons. They also need to itemize access between departments and locations to other systems like the reordering schedules, accounts payable, assets reports, and more. Fishbowl allows you to set custom user permission for workers or location groups, even for specific work orders.
Compliance features
As you know, inventory must be reported at the lower of cost or market value, ensuring that the inventory’s value on financial statements reflects its true potential to generate revenue. This principle prevents businesses from overstating their financial position.
Fishbowl provides real-time visibility to current and accurate stock levels, ensuring that you are tracking all items that are important to your business.
While QuickBooks accounting software offers valuable financial management features, particularly for small businesses, it is not an easily scalable or versatile system with the business functions provided by ERPs. Businesses, particularly those with more complex manufacturing, inventory, or financial profiles, will need to utilize enterprise resource planning systems to address their business needs beyond bookkeeping.
Fishbowl’s ERP software seamlessly integrates with QuickBooks accounting software to give you the best of both worlds. You can utilize useful accounting features while scaling your manufacturing and management capabilities to meet the needs of your industry. Contact us today to see how Fishbowl can augment your accounting system with the ERP features that any growing business needs.