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Quickbooks will do you fine up to $100M in revenue or 8-10+ years in operation. When you cross either of those bridges, you should think about implementing a "r
by tomnipotent 6y ago
Quickbooks will do you fine up to $100M in revenue or 8-10+ years in operation. When you cross either of those bridges, you should think about implementing a "real" ERP.
But this doesn't happen until your team (accounting/finance/CEO/CFO) start running into roadblocks in either piecing together financial statements, or the month close process starts taking weeks of manual labor, or there's a HUGE accounting issue and everyone discovers the forecast is way off and the company has been burning cash faster than expected.
At this point you have the organizational momentum to do the crazy amount of work required in getting an ERP up and running, which requires getting most of your business flowing into it so that it'll even be remotely useful (otherwise everyone goes back to Excel).
What needs to flow into it? Everything you're doing by hand to update your three sheets. You need to get revenue/income in there (sales orders, purchase orders etc.), product costs if you have them, payroll, bills (internet, office supplies). Hopefully you use something like Bill.com, and this becomes a (slightly) simpler process.
Maybe you have vendors in Europe where you pay in Euro, so you now also have to figure out how you're going to convert currencies. Maybe you have warranty on your products, so you have to balance accrual accounts. This list goes on, and on, and on.
Every company is different, and you might not even recognize the overlap between two ERP launches besides the fact that they're using SAP.
- jimnotgym 6y ago>Quickbooks will do you fine up to $100M in revenue or 8-10+ years in operation. When you cross either of those bridges, you should think about implementing a "real" ERP. I think that very much depends on what market you are in. Sure if you are a Saas, but not if you are a European distributor with stock in two countries with different currencies. Stock adds massive complexity. You might be reaching for a lower end ERP at $5m of turnover.
- eru 6y agoIt also depends to an extent on your legal accounting / reporting requirements. Friends who had businesses in both Poland and Singapore tell me that the difference was like night and day.
- tomnipotent 6y agoStock in two countries is nothing that can't be managed by hand without an ERP. I know, because I've done it before. You usually reach in inflection point where your manual process sans-ERP is costing the company real money, and the ability to make quick(er) decisions is hampered by your current process.
- sroussey 6y agoWait until you start accounting for stock compensation.