Are you finding yourself more and more frustrated with your accounting software? Growth is a good thing, but scaling comes with its own set of growing pains. One of those problems is making the transition from an SMB accounting platform, like Quickbooks, to an enterprise accounting software, like NetSuite.
Your business can find ways to make up for your current platform’s lack of functionality for a little while, but in the end, these workarounds only create inefficiencies, add risk, and make the enterprise transition more difficult.
Sooner or later, you’re going to have to face the music and make the change. Here are 4 signs that the time has come, and you’ve reached the point where your SMB accounting platform is holding you back.
Tracking Inventory Isn’t so Easy Anymore
When your business first started, keeping up with inventory was simple. You could go to your warehouse, perhaps just a garage or single storage unit, count how much product you have, and enter it into Quickbooks.
However, today, you have multiple storage units and varied inventory that requires serialization, item grouping, and complex fulfillment processes. You can lean on Excel to make up for your SMB platform’s lack of tracking functionality, but that takes up a lot of time and you open yourself up to human errors that can lead to losing inventory or overselling a product. An enterprise accounting software is perfect when your growth has moved to the next level. naturally, you’d need to move your software platforms to the next level as well.
Reporting Is Basic With Enterprise Accounting Software
SMB applications may track simple KPIs such as revenue, gross profit, expenses, cash balance, etc. However, when your business starts to grow in complexity, you’re going to want your reporting to keep up with you. If not, you may be guessing when it comes to important questions like, “How much can we afford to spend on marketing this quarter?” or, “How many units do we need to sell to meet our quarterly goals?”
Enterprise accounting software platforms track much more than the basics and even let you create custom reports and dashboards. These KPI’s are much more granular, letting you drill down into subsidies, departments, and locations. Enterprise platforms also store more than accounting data; letting you pull reports from across departments and tell the full story of your business.
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Internal Controls Are Now A Legitimate Concern
When you started your business, the need for stricter internal controls was not as valuable. Now that your company is scaling, you may find yourself under new regulations like US GAAP or IFRS standards. For publicly-traded companies, the lack of proper internal controls will be red-flagged by auditors in order to stay in compliance.
Even if you’re not going public, adhering to financial standards increases your financial records reliability, ensuring proper visibility, reducing the chance of a visit from the IRS, and reducing the opportunity for fraud.
Enterprise accounting software platforms have internal control principles built into their role and permissions settings allowing you to isolate responsibilities, restrict access, and remain compliant. No user of financial statements wants to hear that internal controls were not adhered to, so it’s better to have them in place, than not.
Manual Data Entry Is Getting Out Of Control
When you’re juggling multiple business systems to make up for a simple accounting platform, data entry becomes an expensive problem. Re-entering data from Excel or inventory management software into your accounting platform takes up time and risks human error.
Modern enterprise accounting platforms have most of the functionality you’re currently cobbling together under a single sign-on. Not to mention robust API’s that allow you to integrate and automate data entry from any other system you may want to communicate with, such as your eCommerce platform, CRM, or WMS.
Don’t Let Your Accounting Software Hold You Back!
If you’re dealing with even one or more of the challenges above, it’s probably time for you to consider an enterprise accounting platform such as NetSuite. Undergoing a system change like a NetSuite Implementation may be a short-term challenge. However, the long term benefits, highlighted in this article and others, are well worth the short term inconvenience.
With a properly implemented enterprise accounting software platform, your business will be well-suited to overcome the challenges growing companies face in the modern world.
eMerge Technologies provides NetSuite services, including implementation, integration, customization, managed support, and more. For businesses and industries of all sizes and types, eMerge Technologies is the Suite Spot for all your NetSuite needs!
eMerge was founded in 2004 when now-CEO Herb Joseph came to the understanding that cloud-based solutions like NetSuite were the correct path forward. Cloud solutions offer flexibility that improves business efficiency and the quality of work-life balance for the business employees.
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