Many businesses use accounting software like QuickBooks to automate processes (e.g., tracking expenses, issuing branded invoices, and handling payroll) and obtain valuable performance insight from the dashboard and financial reporting. It’s a big step in making a small start-up business feel legit.
Many businesses are satisfied with this investment and question why they would ever leave small business accounting software like QuickBooks to switch to a ‘big ERP’ solution like SAP ERP. They ask, “Isn’t that software for large enterprises?”
Today we tackle QuickBooks vs SAP Business One to clear up ERP misconceptions and explain the differences so you understand why so many growing businesses are moving to ERP solutions such as SAP Business One.
Is QuickBooks an ERP System?
No. QuickBooks is in a different category – it’s accounting software that can be delivered on-premise or in the cloud. It manages accounting processes, tracks expenses and income, and automates business processes to improve how you do business with customers.
But consider your five-year plan and the rate of your business's growth. What processes will you need later? Whether it’s more in-depth inventory management, human resource management, or real-time business reporting, your business's need will continue to evolve.
From startup to milestones like launching new products/services and hitting higher revenue targets, each stage of business growth comes with a change in process requirements for your business management software. Unlike accounting software such as QuickBooks, which primarily covers accounting functions, ERP grows with you.
What Is SAP ERP?
ERP stands for enterprise resource planning. ERP enables you to connect the core functions of your business, including accounting, manufacturing, finance, and supply chain. A connected system allows you to share information across all departments – from production workers to the CEO – for enhanced visibility into all aspects of your operation. SAP, a financial systems leader, is well known for their ERP solutions, but they don't just publish ERP for large enterprises anymore, they also offer solutions for small to midsized enterprises (SMEs) too.
What Is SAP Business One?
SAP’s midmarket solution, SAP Business One, isn’t a watered-down version of their large enterprise solution. SAP Business One gives growing businesses an affordable way to manage their entire business and is purpose built for SMEs. So, in addition to the functionality you’re accustomed to in QuickBooks, you also get a deeper feature set for accounting, financials, purchasing, inventory, sales and customer relationships, project management, operations, and human resources. SAP Business One streamlines processes and provides greater insight into your business so you can act quickly and make decisions based on real-time information to drive profitable growth.
Whenever your business is ready to build out purchasing and inventory control from requesting vendor quotes to creating purchase requests and paying vendors, you can enable that functionality without purchasing additional applications to fill the gap in QuickBooks’s functionality.
Understand the Difference Between SAP vs. QuickBooks
While QuickBooks may fulfill your accounting needs today, that may not be the case tomorrow. The next logical step for a business with maturing processes is implementing a business management solution that grows with those processes. With ERP, you won’t need to replace your software and disrupt business at each new growth milestone.
Download Vision33’s free eBook Graduating from QuickBooks: Enter a New Program with SAP Business One. In it, you'll learn how three QuickBooks users solved common business growth challenges by moving to SAP Business One and upgrading their business processes to support continued growth.