Many businesses, including equipment rental companies, initially choose QuickBooks for the same reason they eventually outgrow QuickBooks: it offers simple and basic bookkeeping.
QuickBooks also performs a variety of other basic functions, including invoicing, expense tracking, and payment acceptance, which are useful for equipment rental equipment companies transitioning away from spreadsheets or manual bookkeeping processes.
The starter plans are affordable, and because QuickBooks is a market leader in basic bookkeeping software, it’s easy to find new employees who are already comfortable with it.
But as time goes on, equipment rental companies are surprised to learn that QuickBooks isn’t a true accounting solution. The features that made QuickBooks so appealing and easy to use in the first place evolve into limitations holding rental businesses back from growing and scaling.
Here are some of the biggest signs that your equipment rental business has exceeded the limitations of QuickBooks:
- Visibility into assets is limited: Whether you’re unaware of which equipment is currently sitting in inventory or what equipment has been oversold to other customers, you likely don’t have access to the information you need to optimize your entire fleet and meet all your rental requests.
- It’s a struggle to access real-time data and reporting: You may be able to pull reports with QuickBooks, but none of them are in real-time. QuickBooks is designed for bookkeepers, not decision-makers. You aren’t getting the insights you need to make strategic decisions in the moment and not after the fact.
- Staffers are still moving back and forth between spreadsheets: Because there are gaps in QuickBooks’ functionality, your staff are forced to find increasingly convoluted or redundant processes just to fill in the gaps. They’re using manual processes for tasks such as equipment inventory tracking.
- You’ve noted an increase in mistakes: Records that are inaccurate, incomplete, or inconsistent can have significant consequences if they aren’t rectified.
- Accessing loans or capital has become difficult: Lending institutions need accurate, verifiable, and auditable information to consider granting you additional funding or credit. QuickBooks lacks the proper controls and audit trails you need to meet these requirements.
- Competitors are surpassing you: As supply chain challenges increase globally, businesses that would have originally purchased their equipment are turning to rental companies instead. That is a great opportunity, but if your competitors are earning most of this new business, it’s time to look at your infrastructure and the software solutions that support your business processes, market insights, and customer experiences.
While taking stock of factors harming your performance is a challenging endeavor in the moment, outgrowing QuickBooks is ultimately a positive thing for your business. Here’s why.
Many of the problems you’re experiencing don’t originate in your business—it’s QuickBooks preventing your equipment rental business from progressing. While moving on from software you’re comfortable with isn’t always easy, it is a sign you’re ready to evolve your business forward.
To help you solve your QuickBooks problems (and achieve your strategic objectives), the next step is to consider whether a proper accounting and ERP system can improve or resolve the issues you are facing. If your goal is to increase efficiency, accelerate performance, and grow your rental business, it’s time to start thinking about investing in flexible equipment rental enterprise resource planning (ERP) software.
What is an Equipment Rental ERP?
An equipment rental ERP system is a single integrated database that provides the core functionality and features you need to manage your entire operations. It goes beyond bookkeeping and provides each of your departments with the ability to collect, store, manage, view, and interpret information about the business and its activities.
Designed to streamline processes and help you maximize profit margins, equipment rental ERP solutions include functionality for accounting, inventory management, sales, business intelligence, and specific equipment rental management capabilities.
Transitioning to an ERP system from QuickBooks might seem intimidating, but it’s worth it. When you select the right equipment rental software and implementation partner, it can be a very straightforward process with minimal business disruptions. To get more prepared, download our complete introduction to equipment rental ERP whitepaper.
How Your Business Will Benefit from Switching to an ERP System
It’s a positive sign when your equipment rental business is ready to transition away from QuickBooks. Here are the positive outcomes companies are seeing after making the switch:
There’s One Database, One Solution
With all your key departmental functions combined in a single equipment rental ERP, there is less software for you or your IT department to manage. Additionally, because all your equipment, inventory, and transactional history is accessible in one centralized database, your equipment rental operation will be streamlined for efficiency by removing internal, cross-departmental bottlenecks.
You’ll Get Better Visibility Across Your Operation
Legacy software and stand-alone systems will often only provide limited insight on the financial impact of equipment utilization, availability, and demand after the month has closed out. This means you are always responding to events that are in the past and may not be identifying nor adapting to emerging market demands and expectations. Equipment rental ERP provides you with data that is accessible in real-time and updated automatically, with complete visibility in equipment availability, finance, service, and even re-rentals.
You Can Expand Your ERP to All Areas of Your Business
With an equipment rental ERP, you always have the option to include advanced, non-rental or non-service modules that can expand to any area of your equipment rental operation. This includes manufacturing, warehousing, human resources, and payroll, all in one integrated database. Whether you’re looking to diversify or scale your operations, or collect, store, and track data in a convenient location, an equipment rental ERP is robust enough to expand and grow with your business.
Your ERP System is Scalable for Life
Cloud-based equipment rental ERP, like ODT Rentals, is designed to last the life of your business. It can perform a full range of department-specific functions, with additional modules that can be added and personalized to your operations as you diversify or expand into new markets. In addition, its user-based monthly licensing and unlimited storage capacity allow it to seamlessly grow with your business requirements and needs.
With all your equipment, inventory, and transactional histories collected, stored, and tracked in one centralized database and accessible in real-time, you don’t have to keep making constant investments in new software and disrupting your business to adapt to new processes.
You’ll Have Secure and Accurate Financial Management
ERP systems help to mitigate the risk of fraud, theft, and other abuses. Tighter controls and procedures, a complete and verified audit trail, records of all changes and reversals, and extensive user permissions all help make an ERP system secure.
Are You Ready to Move to a True Accounting and ERP System?
If you’re starting to feel that QuickBooks is holding your rental business back from growth, now is the time to switch to a true accounting and ERP system. There’s a lot to know before taking the leap, so the experts at Open Door have helped compile this information in one easy-to-read whitepaper.
In this whitepaper, we dive deeper into the reasons why QuickBooks can lead to slow growth, decreased productivity, expensive workarounds, and limitations that impact your ability to make decisions. You will learn more information on the benefits of implementing a centralized ERP in your equipment rental business and what to look for to ensure a successful transition from QuickBooks to ERP.