This is a common question many small and mid-sized businesses that use QuickBooks—a valuable accounting system—face at some point. Some encounter this question when their business starts experiencing exponential growth, leading to increased workload in their accounting department.
Others face it when various areas of their business, aside from finance and accounting, show signs of strain or require attention.
To understand why an ERP system might be necessary even if you’re using QuickBooks, we need to consider a few things: why businesses use QuickBooks, what QuickBooks can and can’t do for businesses, and how having it differs from having an ERP system.
QuickBooks: A Comprehensive Accounting Tool
Accounting and finance are two of the most critical functions of any business. Companies run on money, and to have complete control over their operations, they need to control that money.
This is where accounting and finance functions gain significance. While accounting tracks a company’s financial activities, the finance function oversees overall business operations and plays a vital role in decision-making processes.
QuickBooks is a comprehensive accounting system that meets the accounting and finance needs of a business. However, are businesses only about accounting or managing financial transactions?
Beyond Accounting: The Need for ERP in Process Manufacturing
In process manufacturing businesses, such as those in pharmaceuticals, paint & coatings, food & beverages, personal care & cosmetics, and specialty chemicals, there are many functions to manage beyond finance and accounting. These include manufacturing, inventory management, planning, formulation, quality control (QC), and regulatory compliance.
QuickBooks is essentially a bookkeeping software that combines different accounting processes into one system, allowing businesses to manage invoices, pay bills, prepare for taxes, generate financial reports, and track cash flow.
It’s user-friendly and eliminates the need for complicated tables and spreadsheets necessary for documenting and maintaining accounting tasks.
Some businesses even customize QuickBooks based on their unique financial and accounting needs. However, it remains a tool primarily for managing financial and accounting activities.
The Limitations of QuickBooks
QuickBooks cannot handle all the aspects of a process manufacturing business, such as formulation, R&D, regulatory compliance, and QC. This is where the need for ERP integration with QuickBooks arises. An ERP software can streamline all processes, increase business visibility, and enhance overall organizational productivity.
Why You Need an ERP Even if You Use QuickBooks
Process manufacturing businesses face numerous operational challenges on multiple fronts. There is a need to manage vast amounts of business data, achieve accuracy in reporting, planning and scheduling, deal with quality and traceability issues, manage formulations, meet various industry and environmental regulatory requirements, develop new products, and manage inventory. To effectively address these challenges, process manufacturers need specialized ERP software.
An ERP software helps process manufacturers manage and control numerous formulas/recipes for production through its formula management module. Manufacturers can store, retrieve, and revise every formula used in the manufacturing process.
Features such as version control, automatic formula sizing, multiple units of weight and volume for ingredients, and instant rollback capabilities make a process manufacturer’s life easier.
Key Benefits of ERP for Process Manufacturing:
- Formula Management: An ERP system helps manage and control countless formulas/recipes for production. It allows manufacturers to store, retrieve, and revise every formula used in the manufacturing process, with features like version control, automatic formula sizing, multiple units of weight and volume for ingredients, and instant rollback capabilities.
- Regulatory Compliance: ERP software assists in meeting quality standards with functionalities such as lot and serial traceability, audit tools, NC & CAPA, electronic signatures, and compliance with local, national, and international regulatory requirements.
- Production Management: ERP software automates manufacturing operations through easy and quick creation of batches and complete tracking of production activities like batch creation, allocation, inspection, quality checking, automatic batch sizing, and material substitution.
- Inventory Management: Unlike accounting software that only tracks inventory, ERP software gives manufacturers complete control over their inventory. It allows efficient management of perishable inventory, maintains requisite stock levels, and reduces inventory wastage through real-time visibility. The QC module ensures quality control for inbound and outbound inventory by defining quality checks at every required stage of the supply chain.
Keeping QuickBooks with ERP Integration
If you are using QuickBooks and recognize the need for an ERP system, you might worry about losing your existing software. Fortunately, BatchMaster, a leading provider of ERP solutions for process manufacturers, offers easy integration with QuickBooks. BatchMaster ERP for QuickBooks transforms your business into a more process manufacturing-centric one.
BatchMaster’s expertise, combined with QuickBooks’ prowess in handling finances and accounting, creates a potent combination for process manufacturing businesses. The integration excels in streamlining operations, managing finances, and satisfying statutory requirements in line with current regulations.
For more information about integrating QuickBooks with BatchMaster ERP, reach out to sales@batchmaster.co.in.
