5 Signs You Need to Upgrade Your Accounting Software to an ERP
Is your accounting software package still the right option for your organization?
If you have to ask, your business has likely outgrown this basic back-office software and requires next-level data handling. That means upgrading to an enterprise-wide system with financials, HR and operations modules — for example, an enterprise resource planning (ERP) solution that meets your business needs and helps you make smarter business decisions.
Here are five clear signs that it’s time to make a change.
1. Manual data importing and data unreliability
Integrating with other systems is not easy with a basic accounting platform. Users often have to re-enter data such as customized reporting and payroll entries by hand. In the process, you run the risk of introducing errors that can affect your data across systems. An ERP system will help you avoid time-consuming and repetitive labor, start automating processes, and build a single source of truth.
2. File size limits that impede performance
You may have noticed that your system slows down handling large files. If you’re working with a lot of files, especially big ones, you probably need an ERP to work uninterrupted.
3. Compliance issues
Your current system may be preventing you from meeting industry best practices. It isn’t fully compliant with Generally Accepted Accounting Principles (GAAP) adopted by the SEC, which requires all public companies to follow GAAP standards. If your privately held business is growing, venture capitalists and banks will also want you to demonstrate GAAP compliance. Full ERP systems meet these GAAP compliance standards.
4. Lack of order visibility and inventory control
Basic systems were developed to support small accounting operations, not complex inventory management in a distribution operation. For example, they don’t support lot tracking or live inventory tracking — both important data sources when making strategic decisions about your business. An ERP system provides accurate data and inventory controls that generate inventory counts and transaction totals.
5. Obstacles to fast decisions
Business success requires you to make informed decisions in real time based on reliable data and analytics. Unlike ERP systems, what you are using now may not monitor and report data in real time, introducing a lag into your workflow.
Catch issues before they turn into major problems, accelerate bottlenecked orders, and improve gross margin with actionable insights.
Selecting the right solution for you
Systems like Sage and QuickBooks are a great choices for companies that need simple accounting capabilities, but they come with limitations. As your business grows and evolves into a more complex organization, your software also needs to level up.
Don’t stress over outgrowing your current system — consider it a growing pain while you become a better organization. The best replacement is a more robust ERP system that offers seamless integration with other applications that will grow with your company.
Extending your capabilities doesn’t have to stop there. Cavallo maximizes your ERP investment with a CRM and Order Management System that provides the peace of mind of knowing where every order is in your process. With transparency into your order process, take better care of your customers while enjoying complete control over your sales and ordering operations.
For more information, schedule a demo or experience a CRM and OMS for yourself today.