Beyond QuickBooks: Why Small Manufacturing Businesses Need ERP

Without an integrated system, manufacturers struggle to track inventory levels, schedule production, and manage costs. As a result, many find themselves in a cycle of workarounds that drain time and resources.

This article is written for small manufacturing companies to learn when and why it’s time to move beyond the QuickBooks + Excel puzzle to an enterprise resource planning (ERP) system.

We’ll explore:

• The limitations of QuickBooks and Excel for growing manufacturers
• How ERP systems differ from QuickBooks
• Key benefits of ERP for small businesses
• Signs that indicate it’s time to upgrade
• How to transition smoothly from QuickBooks+ Excel to ERP

Current State: The QuickBooks + Excel Puzzle

Many small manufacturers rely on QuickBooks as accounting software and Excel for everything else. Since QuickBooks wasn’t designed for manufacturing, businesses create workarounds for production, inventory, and job costing. This patchwork system works initially but becomes harder to maintain as a company grows.

Common Business Processes Managed in QuickBooks

• General ledger and financial reporting
• Invoicing and payroll
• Tracking sales and expenses

Typical Excel Spreadsheet Workarounds for Manufacturing Needs

• Inventory management with manually updated stock levels
• Production planning and scheduling
• Job costing and supplier management

When This Setup Works

The combination of QuickBooks Desktop Enterprise and Excel can be sufficient for startups and very small manufacturers with a low volume of transactions and minimal operational complexity. When businesses operate on a small scale with straightforward processes, this setup provides a cost-effective way to handle financials and basic production management.

However, relying on separate systems for everyday business functions creates inefficiencies and makes scaling difficult. What starts as a simple workaround can eventually hold a business back.

The Limitations of QuickBooks and Excel for Growing Manufacturers

As manufacturing businesses expand, the limitations of a QuickBooks + Excel approach become increasingly apparent.

Manual Processes & Data Silos

Since these two tools do not integrate, users must enter the same information multiple times into different spreadsheets and QuickBooks records. This duplication increases the risk of errors, leading to discrepancies in inventory counts, financial reports, and production schedules.

Lack of Real-Time Visibility

With a QuickBooks + Excel setup, tracking inventory levels, production status, and cash flow in real-time is nearly impossible. Since spreadsheets require constant manual updates, the data is often outdated when reviewed. Without up-to-date visibility, manufacturers can easily experience supply chain disruptions, stockouts, or financial miscalculations.

Limited Manufacturing-Specific Features

QuickBooks is designed for general accounting, not manufacturing. This means it lacks the tools necessary to manage production efficiently. Manufacturers relying on spreadsheets to track Bills of Materials (BOM), Material Requirements Planning (MRP), and supply chain forecasting often experience inaccuracies and operational delays.

Scalability Challenges

As a manufacturing company grows, QuickBooks and Excel become harder to manage. More transactions and additional employees lead to miscommunication and inconsistencies. Businesses that rely on these tools often struggle to track sales, manage complex customer orders, and maintain accurate inventory.

Compliance & Reporting Risks

Manufacturers who must comply with industry regulations, audits, or traceability requirements usually find using QuickBooks and Excel inadequate. Without built-in compliance tools, businesses must rely on manual record-keeping, which increases the chances of errors and missing critical data points. Creating reports for regulators and investors also takes additional time and effort.

As a business grows, these limitations become more pronounced. The time and effort spent managing workarounds eventually outweigh the initial cost savings of using QuickBooks and Excel. At this point, an ERP system becomes the logical next step.

What Exactly Is an ERP and How Does It Differ from QuickBooks?

What is ERP Software?

ERP software solutions represent a fundamentally different approach to manufacturing business management. While QuickBooks focuses primarily on accounting, ERP systems connect all aspects of a manufacturing operation into a single, integrated platform.

Because ERP systems are modular, businesses can start with essential functions and add features as they grow. This flexibility allows manufacturers to scale operations without relying on disconnected spreadsheets and manual processes.

Key Differences Between QuickBooks and ERP Systems

The primary difference between QuickBooks and an ERP is scope. QuickBooks is an accounting system, whereas an ERP is a complete business management solution.

Major distinctions include:

• QuickBooks is accounting-focused, while ERP covers financials, inventory, production, customer relationship management (CRM), and more
• ERP automates processes like production scheduling and supply chain management
• ERP eliminates the need for spreadsheet workarounds by handling reporting, forecasting, and scheduling

Six Signs Your Business Needs an ERP System

How do you know when it’s time to move beyond QuickBooks? Below are six clear indicators that your manufacturing business has outgrown its current setup.

1. Your Staff Spends Too Much Time on Data Entry

You start to notice

• Employees regularly stay late to catch up on data entry
• The same information gets entered into multiple systems
• Your team maintains numerous spreadsheets to track business processes
• Simple questions require checking multiple sources for answers
• Staff members spend more time managing data than analyzing it

2. Inventory Numbers Never Seem Accurate

Your inventory management system isn’t working if

• Physical counts frequently disagree with system records
• You experience unexpected stockouts of critical materials
• Staff doesn’t trust the numbers and maintains separate counts
• You can’t track work-in-progress inventory accurately
• Material costs in finished products don’t match actual spending

3. Production Scheduling Becomes a Daily Challenge

Production issues that signal the need for ERP:

• Difficulty coordinating material availability with production needs
• Constant schedule changes to handle rush orders
• Unable to give customers accurate delivery dates
• Machine capacity and maintenance schedules are managed manually
• No clear view of the work-in-progress status

4. Financial Reports Take Too Long to Generate

Financial reporting red flags include

• Month-end closing takes more than a week
• Unable to calculate actual job costs until weeks after completion
• Difficulty tracking costs across multiple locations or departments
• Product line profitability analysis requires extensive manual work
• Cash flow projections based on outdated information

5. Quality Control and Compliance Become Hard to Manage

Watch for these quality management challenges:

• Difficulty tracking product testing and inspection records
• No system for managing customer complaints and resolutions
• Problems tracing materials through the production process
• ISO certification requirements are becoming harder to meet
• Limited ability to track revision changes in products

6. Growth Plans Feel Limited by Current Systems

Current systems limit growth when

• Adding new product lines requires complex spreadsheet changes
• Opening new locations means creating separate QuickBooks files
• Customer service can’t quickly access order and inventory information
• Supply chain management becomes increasingly complex
• Training new employees becomes difficult due to complex processes

Finding an ERP that Integrates with QuickBooks

The decision to implement an enterprise resource planning system doesn’t always mean abandoning QuickBooks entirely. Many manufacturers choose a hybrid approach, keeping QuickBooks for accounting while adding manufacturing-specific ERP capabilities.

This strategy preserves familiar accounting workflows while adding powerful manufacturing features. Your accounting team can continue using the tools they know while the rest of your operation gains new capabilities.

Data flows automatically between the two systems. When the ERP records a production completion or inventory movement, it sends the financial information to QuickBooks. When QuickBooks processes a payment or invoice, the ERP updates its records accordingly.

Popular QuickBooks-compatible ERP Systems

Below are our recommended ERP systems that are QuickBooks-compatible.

Moving Away from QuickBooks to an ERP System

Deciding to move from QuickBooks to ERP requires careful planning and execution. Here’s a step-by-step guide to managing the transition smoothly:

1. Assess Business Needs and Goals

Identify the main challenges with QuickBooks and Excel, such as manual data entry, inventory tracking issues, or financial reporting delays. Define the key ERP features to address these problems and support long-term growth.

2. Research ERP Solutions for Small Manufacturers

Look for ERP systems designed for small to mid-sized manufacturers with features like material requirements planning, bill of materials management, and production scheduling. Cloud-based ERPs can be cost-effective, offering flexibility and remote access without requiring extensive IT infrastructure.

3. Plan Data Migration

Ensure all financial, inventory, and customer data is accurate before migrating to an ERP. Cleaning up records, standardizing data formats, and eliminating duplicates will prevent errors and make the transition smoother.

4. Implement in Phases

Start with core modules like accounting, inventory, and production management before rolling out additional features. A gradual implementation helps employees adjust while minimizing disruptions to daily operations.

5. Train Staff for a Smooth Transition

Provide training to ensure employees understand how to use the new system effectively. Offering hands-on practice and ongoing support will help ease the learning curve and improve adoption.

6. Optimize and Expand Usage

Once the ERP is in place, explore automation tools, advanced reporting, and workflow improvements to maximize its value. As the business grows, the system can scale to support more complex operations, new locations, and additional product lines.

Our Curated List of ERP Systems that Outperform QuickBooks

The following ERP systems are excellent choices for small- to mid-sized manufacturing businesses looking to end the QuickBooks + Excel Puzzle:

Learning from Other Small Business Owners

Explore these case studies to learn more about the benefits of ERP implementation for small manufacturing businesses.

EcoBags Products: Growing Sustainably with NetSuite ERP

EcoBags Products, a pioneer in eco-friendly reusable bags, needed a solution to streamline operations and support growth. Facing challenges with manual processes and software incompatibilities, they turned to NetSuite ERP. With cloud-based access and integrated inventory, financial, and e‑commerce management, EcoBags Products expanded their reach and scaled their business while staying true to their mission of sustainability. Here’s how NetSuite ERP helped them clean up inefficiencies — and the planet — one bag at a time. Read More.

ACP Solutions: Scaling Operations with JobBOSS² ERP

ACP Solutions, the largest panel shop in southwest Ontario, faced growing pains as QuickBooks and Excel failed to keep up with their expanding operations. Seeking a solution that could streamline processes and support growth, ACP implemented JobBOSS² ERP. With real-time tracking, integrated workflows, and cloud-based flexibility, they eliminated inefficiencies, improved decision-making, and enhanced customer service — laying a strong foundation for future success. Here’s how JobBOSS² helped ACP power their growth beyond spreadsheets. Read More.

Titanova Laser: Driving Growth and Efficiency with JobBOSS² ERP

Titanova Laser, a precision laser-machining shop, faced growing pains as manual processes and disconnected systems couldn’t keep pace with their expansion. Needing a solution to centralize operations and connect their two locations, they chose JobBOSS² ERP. With real-time visibility, streamlined workflows, and cloud-based flexibility, Titanova reduced inefficiencies, improved decision-making, and saved significant time — setting the stage for smarter growth and higher profitability. Here’s how JobBOSS² became a key tool in Titanova’s success story. Read More.

Taking the Next Step Toward ERP

While choosing an ERP system can feel daunting, our experts at Top10ERP are ready and available to ease the process. Start by exploring our side-by-side comparison of the top 10 ERP systems for small manufacturers of 2025 to discover what system may be the best fit for your business.

If you prefer an even more personalized approach, schedule a call with one of our human experts. They will analyze your needs and connect you with the top ERP vendors for customized price quotes and demos.

FAQs

Small-sized manufacturers often have questions about moving from QuickBooks to an ERP system. Here are answers to the most common questions from business owners considering this transition.

Will an ERP be too complex for my small manufacturing business?

Modern ERP systems are designed for small manufacturers. They offer user-friendly interfaces and modular features that can be implemented gradually. Many cloud-based ERPs provide guided onboarding and support to simplify the transition.

What is the cost of an ERP system compared to QuickBooks?

ERP pricing depends on factors like the number of users, cloud vs. on-premise deployment, and included modules. While enterprise resource planning software is more expensive than QuickBooks, it offers significant cost savings by reducing errors, improving efficiency, and eliminating the need for multiple disconnected systems.

How long does it take to implement an ERP?

Implementation timelines vary based on the size and complexity of the business, but many small manufacturers complete the process within a few months. Phased rollouts, starting with core features, can help minimize disruption.

Can I keep my historical data from QuickBooks?

Most ERP systems can import historical data from QuickBooks. You choose how much history to migrate. Some manufacturers transfer two years of transactions while keeping older data accessible in QuickBooks for reference.

What if my business is too small for an ERP system?

Size alone doesn’t determine ERP readiness. Consider your operational complexity, growth plans, and current inefficiencies. Many ERP vendors offer solutions scaled for small manufacturers, with options to add features as you grow. If you’re managing multiple spreadsheets alongside QuickBooks, you might be ready for ERP regardless of size. Even one-man shops benefit from an ERP system.

Is Quickbooks an ERP system?

No, QuickBooks is an accounting software, not an ERP. It manages financial transactions but lacks manufacturing-specific features like inventory tracking, production scheduling, and supply chain management.