Is QuickBooks an ERP system?
This is a bit of a complicated question. Ultimately, the answer is no. However, you might find a few different answers to this question from different sources. So, what is the difference between ERP and QuickBooks?
The better question here might actually be what ERP systems can do that QuickBooks can’t do, especially when we also take into account QuickBooks Enterprise. For example, most ERPs will provide features such as lot tracking and shop floor control.
In truth, ERP systems can do most of the things QuickBooks can do, but the reverse is not necessarily true.
If QuickBooks is a handheld camera, and ERP software is an iPhone with a camera included. Most ERP systems will include some form of accounting capabilities among their features. Even QuickBooks Enterprise advertises itself as a robust alternative to switching to a fully-fledged ERP system.
When it comes to comparing QuickBooks vs. ERP software, an ERP system is designed to manage all aspects of your business, while QuickBooks is mostly designed for your accountant or bookkeeper.
Some limitations of QuickBooks
It might well be that QuickBooks is all you need in order to manage your day-to-day operations.
It’s popular for a reason, fairly cost-effective and simple to use. But just because it’s good enough now doesn’t mean you won’t face trouble as your business grows. Let’s get more specific here and look at the limitations of using QuickBooks Online:
- Missing industry-specific features such as barcode scanning, lot tracking, and e-commerce
- Primarily designed to cater to small businesses rather than larger or scaling ones.
- No invoice design tools
- Limitations on the number of transactions
- Cannot create many key reports that aren’t related to accounting
- Can only accommodate a limited number of users at a time