Many small and medium sized manufacturers start off with an accounting package and manage inventory and production with a combination of spreadsheets and manual processes. Over time, as the company grows, the manual processes are no longer adequate to support the more complex operational environment, although the original accounting system is still going strong.
Small companies face a dilemma at this point. They need better operational systems to support manufacturing growth, but they are reluctant to undertake the hassle and risk of replacing their accounting system. A new accounting system is a big undertaking for a company.
Keeping invoicing and cash flow on target is imperative, not to mention the disruption to other departments. There’s the resource drain of converting existing records and potentially redesigning everything from the company’s chart of accounts to the item number schema. There are costs associated with training people on new accounting processes, and the risk of introducing errors or losing access to historical information. It’s a lot to take on when the existing system is working well.
But the operations team is drowning. Inventory is out of control and the shop floor doesn’t know what to work on next. Part shortages are rampant because of lack of supply chain visibility, and nobody knows what the real priorities should be on the plant floor. It’s chaos, and the only solution is a modern ERP system, but most ERP systems have their financial applications so tightly intertwined with the operational applications that you are forced to replace your existing accounting solution.
However, there is a solution. Many best of breed ERP solutions are designed to integrate seamlessly with your existing accounting software solution. With best of breed you can achieve all the benefits of a state of the art ERP system without disrupting your business. Whether you are using Intuit QuickBooks or Microsoft Dynamics GP, your accounting team can continue running business as usual while your operations team implements and begins using ERP software.
Best of breed ERP solutions are designed to integrate seamlessly with external applications, so there are none of the disadvantages associated with running third party accounting software. There is no “shadow” accounting in the ERP system that requires duplicate entries or additional overhead as there is with most other ERP/third party accounting setups. The integration to your accounting application is so seamless you can even drill back to the source data to resolve transactional anomalies.
The result is less disruption to your business and all the advantages of a fully featured state-of-the-art ERP solution. You’ll achieve better inventory management, more efficient operations and more effective planning.
What you won’t have is the risk of business interruption, the cost of replacing existing software, the resources wasted on training and process documentation for new systems and the other hassles of replacing your accounting solutions. You’ll continue to enjoy a return on your original investment while providing the new tools your business needs in order to grow. It’s the best of all possible worlds.
