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QuickBooks is a great tool for small manufacturing companies that need core accounting. But as businesses scale, tangible complexities cause them to outgrow QuickBooks. Inventory management, purchasing, and production are not supported in QuickBooks. Each of these affects manufacturers’ top and bottom lines.
With QuickBooks, manufacturing companies often have to rely on spreadsheets and manual processes. This is labor-intensive and error-prone. It isn’t an efficient way to keep track of and tie critical aspects of the business back to its financials. QuickBooks doesn’t deliver the speed and insight to make smart business decisions. These limitations hinder the ability to increase revenue and profitability.
SAP Business One is an ERP system designed for small to midsize businesses. It provides robust accounting and financial management capabilities. It also has inventory management, purchasing, materials resource planning, production management, supply chain management, and more. SAP Business One provides the real-time operational visibility that manufacturing companies need. Manufacturers can manage their business holistically and grow in a competitive marketplace. Let’s take a look at the differences between QuickBooks and SAP Business One.
QuickBooks vs. SAP Business One Comparison
Integration & Completeness
QuickBooks is a standalone system that can integrate with some separate, third-party applications. Manufacturers often add CRM and MRP systems to handle their core business needs. Then they have programs working off of different databases. As a result, they cannot get accurate, real-time, and connected information. Manufacturers need integration between their accounting, purchasing, and manufacturing operations. That connection ensures a true and efficient end-to-end organization.
SAP Business One has all business operations within one system. Its integration eliminates redundancy, increases accuracy, and improves efficiency across the company. Everyone works from one database for a single version of the truth.
QuickBooks does not provide complex inventory management or lot tracking. This lack of inventory data makes it difficult to control costs and see trends.
SAP Business One provides real-time visibility into safety stock, re-order points, cycle counts, and demand planning. There is immediate synchronization of goods receipts and inventory levels to inform purchasing. SAP Business One is an intelligent ERP that keeps inventory at optimal levels. It streamlines production and ensures on-time deliveries by never running out of stock. The system manages inventory shelf life, tracks expirations, and identifies non-conforming inventory. It automates pick, pack, and order staging. And, the system shows stock locations within warehouses and bins.
Its lack of integration means QuickBooks provides limited visibility. So you can’t see what is happening in other departments. This is a severe limitation for manufacturing businesses. It prevents insight into trends in costs, inventory, and the supply chain. Manufacturers can’t forecast or make good business decisions.
SAP Business One is a modern ERP system that allows manufacturers to see the whole business. Accounting and Financials, CRM, Sales, Service, Warehouse and Inventory Management, Production, Purchasing, Reporting and Analytics, and more connect on a single platform. This connectivity provides full visibility and real-time intelligence. Employees have insight into orders, production, inventory, and deliveries. This allows them to better help customers and improve satisfaction.
When a business is growing it’s important to have efficient productivity. QuickBooks only handles basic accounting processes and reporting. Spreadsheets become necessary to create custom reports for business insight. This is time-consuming and inefficient. If other systems are used, there is redundancy in data entered. This ad hoc workflow creates information silos and hinders productivity.
SAP Business One integrates all operations and provides real-time data. The finance department can do month-end closes faster. Information is accurate. Customers get invoiced immediately. Vendors get paid quicker. Operational processes across the company become automated. Everything gets connected and streamlined.
Business Intelligence and Data Insights
As your manufacturing business grows, you need more advanced accounting and financial reporting. It’s important to have a fast and accurate picture of your business at any given time. You need to be able to drill down and see all types of data. QuickBooks doesn’t have integration for visibility into other departments’ information. There is no simple invoice or company-wide forecasting for management to view. There is also no documented and GAAP-compliant audit trail of transactions.
SAP Business One provides real-time dashboards, reports, and analyses of all company activities. You can drag and relate and drill down data to see exactly what you need. You can improve your sales performance with analytics and predefined key performance indicators. There are powerful reporting tools, including the popular Crystal Reports. You have visualizations to help you understand the information to make better decisions. You can see your manufacturing business from all perspectives for real-time insight.
QuickBooks doesn’t allow for proper and accurate demand forecasting. It lacks the connected pieces needed. Limited analytics makes it difficult to recognize new opportunities. Its limitations with integration, efficient workflow, and insight are challenging. It makes it hard for manufacturers to adapt to change to stay competitive and be profitable.
SAP Business One’s drill-down functionality gets answers to your most pressing questions. It allows employees to address customer needs faster. Managers can track revenues, costs, and cash flow. That allows them to assess performance and take quick corrective action.
SAP Business One is very configurable. You can adapt the system as your needs and processes change over time. If you want to grow your business overseas, it supports 28 languages and 44 countries. SAP Business One provides advanced intelligence, full connectivity, and optimized processes. It helps manufacturing companies pivot fast to meet changing business needs.
SAP Business One for Manufacturing
OptiProERP with SAP Business One is a business management solution for manufacturers. It’s a fully-integrated manufacturing ERP system with end-to-end manufacturing capabilities. There are no bolt-ons or add-ons that sit outside of SAP Business One.
OptiProERP provides paper-free, automated processes on a single system without manual workarounds. It can take a quotation, change it into a sales order, then generate a production order from the sales order. It gets the product shipped out the door, invoiced, and receives the incoming payment.
With OptiProERP shop floor operators can note the time a job started and stopped without leaving their desks. They can also note the quantity produced, and if there were any defective items. Operators can show if there was any machine downtime and see their next job. It shows real-time updates to schedules. Managers can track productivity by operator or machine. They can also track shop floor activities from anywhere using the mobile app.
OptiProERP is an SAP Business One OEM partner.
Watch this video to see OptiProERP’s manufacturing ERP system on SAP Business One.
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