Introduction
In today’s fast-paced digital economy, businesses—small, medium, or large—are in constant search of efficient systems to manage their day-to-day operations. Among the most popular financial management solutions is QuickBooks, a brand widely recognized for its user-friendly accounting software. However, with the evolving needs of growing businesses, the concept of QuickBooks ERP has surfaced as a powerful integration solution, combining QuickBooks' robust accounting capabilities with the broader functionality of ERP (Enterprise Resource Planning) systems.
While QuickBooks alone is not a full-fledged ERP system, it becomes a formidable ERP-like tool when integrated with various business applications and custom modules. This article offers a deep dive into QuickBooks ERP—what it is, how it works, its advantages and limitations, industries using it, how it compares to traditional ERP systems, and considerations for businesses thinking of adopting it.
What is QuickBooks ERP?
QuickBooks ERP is not a standalone product provided by Intuit (the developer of QuickBooks), but rather a conceptual model wherein QuickBooks acts as the financial core and is integrated with additional business management functionalities to function similarly to a traditional ERP system.
This hybrid model offers accounting, inventory, customer relationship management (CRM), supply chain, payroll, eCommerce, and other critical business functionalities in a single ecosystem. It’s essentially about extending the capabilities of QuickBooks through third-party integrations and tools, thus allowing small-to-midsize businesses to achieve ERP-level operations at a fraction of the cost.
Key Features of QuickBooks ERP Integration
1. Accounting Core
QuickBooks is best known for its intuitive accounting capabilities. It handles:
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Income and expense tracking
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Invoicing and payments
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Bank reconciliation
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Profit and loss reporting
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Tax calculations and preparation
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Payroll processing
These form the core financial functions around which the ERP ecosystem is built.
2. Inventory Management
QuickBooks Online and QuickBooks Enterprise offer built-in inventory management. When integrated with specialized tools like SOS Inventory or Fishbowl, it allows:
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Barcode scanning
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Stock level tracking
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Purchase order management
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Inventory valuation and costing
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Multi-warehouse management
3. CRM Integration
CRM systems like HubSpot, Salesforce, or Method:CRM can be linked to QuickBooks, providing:
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Customer data synchronization
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Lead and pipeline management
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Sales tracking
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Automated invoicing and follow-ups
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Enhanced customer communication
4. Payroll and HR
QuickBooks Payroll can handle payroll natively, but for ERP-level performance, integrations with platforms like Gusto or ADP add:
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HR record management
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Time tracking
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Benefits administration
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Employee onboarding
5. E-Commerce and Point-of-Sale
For businesses in retail or eCommerce, QuickBooks can be connected to:
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Shopify
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WooCommerce
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Amazon
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Square
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Clover
This enables automatic syncing of orders, inventory, and sales data with accounting.
Why Businesses Choose QuickBooks ERP
There are several reasons why QuickBooks ERP is increasingly adopted by growing businesses:
1. Cost-Effectiveness
Traditional ERP systems like SAP, Oracle, or NetSuite come with high licensing fees and long deployment timelines. QuickBooks ERP offers a more affordable and faster alternative.
2. Scalability
Businesses can start with QuickBooks and scale by integrating more tools as they grow. This modular approach avoids paying for features you don’t yet need.
3. Familiar Interface
Many users are already familiar with QuickBooks’ interface. Adding integrations does not drastically change the user experience.
4. Cloud-Based Flexibility
With QuickBooks Online and its cloud-compatible plugins, businesses can access their ERP-like systems from anywhere.
5. Fast Implementation
Unlike conventional ERP systems that may take months or even years to implement, a QuickBooks ERP integration setup can be up and running in weeks.
Common Integrations for QuickBooks ERP
To transform QuickBooks into an ERP solution, businesses often use the following integrations:
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Inventory: SOS Inventory, Fishbowl, DEAR Systems
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CRM: Salesforce, HubSpot, Method:CRM
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E-Commerce: Shopify, WooCommerce, BigCommerce
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HR/Payroll: Gusto, ADP, TSheets
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Manufacturing: Katana, MRPeasy
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Shipping: ShipStation, ShipRush
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Reporting & Analytics: Fathom, Qvinci
These integrations connect via APIs or third-party connectors such as Zapier or OneSaas, creating an all-in-one ERP environment.
Industries That Benefit from QuickBooks ERP
QuickBooks ERP is not industry-specific. However, it is particularly useful in the following sectors:
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Retail and eCommerce: For sales syncing, inventory tracking, and payment processing.
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Manufacturing: For job costing, order management, and production tracking.
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Professional Services: For time tracking, billing, and project management.
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Wholesale and Distribution: For supply chain and inventory management.
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Nonprofits: For donor management, grant tracking, and fund accounting.
Limitations of QuickBooks ERP
While QuickBooks ERP is powerful, it's important to understand its limitations:
1. Not a True ERP Platform
QuickBooks was not originally designed to be an ERP system. It lacks native support for some enterprise-grade features like MRP, advanced procurement, and business intelligence.
2. Integration Complexity
Adding multiple third-party apps can create data synchronization issues if not carefully managed.
3. User Restrictions
QuickBooks Online has user limitations. Although QuickBooks Enterprise allows up to 40 users, large teams may still find it restrictive.
4. Reporting Constraints
While QuickBooks offers basic reports, it may lack in-depth business intelligence compared to traditional ERP systems.
5. Dependency on Internet Connectivity
Like all cloud-based systems, QuickBooks ERP integrations rely heavily on stable internet access.
Steps to Building a QuickBooks ERP System
If you're considering moving from standalone accounting to a full QuickBooks ERP setup, follow these steps:
Step 1: Assess Your Business Needs
Determine what functionalities your business lacks—inventory control, customer management, reporting, etc.
Step 2: Choose the Right QuickBooks Version
QuickBooks Enterprise is usually better suited for ERP-level functions than QuickBooks Online due to its advanced features.
Step 3: Select Integration Partners
Choose add-ons that meet your specific business requirements. Ensure they are compatible and reliable.
Step 4: Plan Data Flow
Work with IT consultants or developers to ensure smooth data mapping across systems.
Step 5: Train Your Team
Ensure all team members are trained to use the new system efficiently.
Step 6: Monitor and Optimize
Use performance metrics and user feedback to refine your ERP setup over time.
QuickBooks ERP vs Traditional ERP Systems
QuickBooks ERP should not be directly compared to ERP giants like SAP or Oracle. However, for SMBs, it offers:
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Simpler interface and usability
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More cost-effective entry point
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Faster deployment
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More flexible integration options
Yet, traditional ERP systems offer:
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Deeper data analysis
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Advanced automation
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Industry-specific modules
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Better global compliance
For many businesses, QuickBooks ERP strikes the right balance between functionality and affordability.
Final Thoughts: Is QuickBooks ERP Right for You?
Choosing the right business management system is a pivotal decision for any company aiming to streamline its operations and position itself for sustainable growth. As businesses scale, they often outgrow the capabilities of basic accounting software and look toward more comprehensive solutions like ERP (Enterprise Resource Planning) systems. But full-scale ERP platforms can be complex, expensive, and time-consuming to implement. That’s where QuickBooks ERP comes into play as a middle-ground solution.
QuickBooks ERP is not a traditional ERP system—it’s more accurately a powerful accounting platform enhanced with robust integrations. By combining QuickBooks with third-party applications that manage inventory, CRM, HR, manufacturing, and e-commerce, businesses can build a fully functional ERP ecosystem that’s tailored to their specific needs. This makes QuickBooks ERP an appealing option for small to mid-sized businesses that require more than just accounting but aren't ready to invest in an enterprise-level ERP solution like SAP, Oracle, or Microsoft Dynamics.
Flexibility and Scalability
One of the strongest arguments in favor of QuickBooks ERP is flexibility. Businesses can start small, using QuickBooks for core accounting tasks, and gradually integrate additional tools as their needs evolve. This modular approach means companies are not forced to adopt functionalities they don’t need right away or pay for expensive features that don’t yet serve their operation.
Scalability is also a key benefit. Whether it’s adding a CRM to manage customer interactions or linking with inventory software to oversee product stock levels, businesses can continuously build upon their QuickBooks foundation. This ensures they remain agile and responsive to changing demands, customer expectations, and market conditions.
Cost-Effective for Growing Businesses
Implementing a traditional ERP system often comes with a hefty price tag, not just in terms of software licensing, but also consulting, data migration, and training. These systems are sometimes too much for small businesses with tight budgets and limited IT resources.
QuickBooks ERP offers a cost-effective alternative. Most of the third-party integrations available are subscription-based and affordably priced. Businesses can select only the integrations they need, meaning they won’t be spending money on unnecessary features. This lowers the total cost of ownership and allows organizations to maximize their ROI.
Familiarity and Ease of Use
Another major advantage is familiarity. QuickBooks has a large user base, and many small business owners and accountants are already comfortable with its interface and capabilities. This familiarity shortens the learning curve and speeds up adoption
Ease of use is also an essential factor, especially for businesses that lack dedicated IT staff. QuickBooks and its ecosystem of integrations are generally user-friendly, well-documented, and supported by large online communities and customer service teams.
Real-Time Data and Automation
The integrated nature of QuickBooks ERP allows for real-time data synchronization, providing business owners with immediate insights into sales, cash flow, inventory, and employee performance. This real-time visibility is critical for fast decision-making and helps prevent issues such as stockouts, missed invoices, or payroll errors.
Automation is another game-changing benefit. By connecting different functions—like sales data from Shopify directly into accounting or customer interactions from Salesforce into invoicing—businesses can reduce manual entry, minimize errors, and free up valuable time for strategic work.
Consider the Limitations
While QuickBooks ERP presents numerous advantages, it's not without its limitations. It's important to understand these to make a well-informed decision.
First, QuickBooks, even in its Enterprise version, wasn't originally designed to be a full ERP. This means some advanced ERP features, such as complex manufacturing processes (MRP II), multi-level BOMs, or sophisticated supply chain logistics, may be missing or require significant customization.
Second, the success of QuickBooks ERP heavily depends on the quality of integrations. If integrations are poorly managed or incompatible, data discrepancies can occur, leading to errors or reporting issues. A company with complex workflows may find it more challenging to create a seamless ecosystem using disparate third-party apps compared to a unified ERP platform.
Third, reporting and analytics in QuickBooks are basic compared to full ERP systems. For deep business intelligence, businesses may need additional reporting tools, which adds to the learning curve and operational complexity.
Lastly, user limitations can be a constraint, especially for larger teams. While QuickBooks Enterprise supports up to 40 users, it might not be sufficient for large-scale businesses with hundreds of concurrent users.
Who Should Choose QuickBooks ERP?
QuickBooks ERP is best suited for:
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Small to mid-sized businesses that are growing and need more than basic accounting
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Businesses with limited budgets and IT resources
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Companies looking for modular and customizable solutions
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Organizations already using QuickBooks and wanting to scale up
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Firms in industries like retail, services, eCommerce, and light manufacturing
Businesses that need high-end customization, multinational capabilities, or deep manufacturing support may be better off investing in a full ERP system designed from the ground up.
Final Verdict
QuickBooks ERP is a powerful, affordable, and practical solution for companies looking to extend their accounting software into a full-scale business management tool. It bridges the gap between simple accounting platforms and traditional ERP systems, offering the flexibility, integration, and scalability needed for today’s growing enterprises.
Ultimately, whether QuickBooks ERP is right for you depends on your current size, complexity, budget, and growth goals. If you value agility, cost-effectiveness, and a user-friendly interface—and are willing to manage some integration complexity—QuickBooks ERP can serve as a solid backbone for your business operations and future expansion.
It might not be the most glamorous ERP option on the market, but in terms of practicality and ROI for SMBs, QuickBooks ERP might just be exactly what you need.
FAQ
1. Is QuickBooks an actual ERP system?
No, QuickBooks is not a traditional ERP system. It is fundamentally an accounting software developed by Intuit. However, by integrating QuickBooks with third-party applications for inventory, customer relationship management (CRM), payroll, manufacturing, and more, businesses can effectively create an ERP-like system. This integrated setup is commonly referred to as "QuickBooks ERP," even though Intuit does not offer a dedicated ERP platform.
2. What makes QuickBooks ERP different from traditional ERP systems?
Traditional ERP systems like SAP, Oracle NetSuite, or Microsoft Dynamics are all-in-one enterprise solutions designed to manage every aspect of a company’s operations under a unified platform. QuickBooks ERP, on the other hand, is modular and flexible, allowing businesses to build their own ERP-like system using QuickBooks as the financial core and integrating it with specialized tools for other functions. This makes it more affordable, easier to use, and faster to deploy—but sometimes less powerful or cohesive than a full ERP.
3. Which version of QuickBooks is best suited for ERP-level integration?
QuickBooks Enterprise is the most suitable version for ERP-like functionalities. It includes advanced inventory, job costing, and reporting features that are essential for businesses requiring more than basic bookkeeping. QuickBooks Online is also widely used but may require additional third-party integrations to match the robustness of the Enterprise edition.
4. Can QuickBooks ERP handle inventory management?
Yes. QuickBooks Enterprise includes basic inventory tools, and with the right integrations—such as Fishbowl, SOS Inventory, or DEAR Systems—businesses can enable features like:
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Multi-location inventory
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Barcode scanning
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Serial number tracking
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Purchase order management
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Stock level alerts
These tools turn QuickBooks into a strong contender for inventory-heavy businesses.
5. Is it possible to integrate QuickBooks with a CRM?
Absolutely. QuickBooks integrates with leading CRMs like Salesforce, HubSpot, Insightly, and Method:CRM. These integrations allow businesses to:
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Synchronize customer data
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Automate invoice creation based on sales activities
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Track customer interactions
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Generate sales reports
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Improve customer service and retention
6. How secure is QuickBooks ERP when integrated with third-party tools?
Security is a top priority, and both QuickBooks and most reputable third-party applications use bank-level encryption, multi-factor authentication, and secure data centers. It is important to ensure that the integrations used are well-known, highly rated, and compliant with industry standards. Always work with certified app partners and regularly update your systems.
7. Can I use QuickBooks ERP for e-commerce operations?
Yes. QuickBooks can be integrated with platforms like Shopify, WooCommerce, BigCommerce, and Amazon. These connections enable:
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Automatic syncing of orders
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Real-time inventory updates
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Financial tracking of online sales
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Tax calculation and reporting
QuickBooks ERP is a strong solution for eCommerce businesses looking to combine online operations with financial management.
8. How does QuickBooks ERP handle payroll and human resources?
QuickBooks has built-in payroll features. For advanced HR and payroll, it can integrate with tools like Gusto, TSheets (QuickBooks Time), BambooHR, or ADP, allowing for:
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Automated payroll processing
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Time and attendance tracking
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Employee onboarding
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Benefits administration
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Labor cost analysis
This makes it easier for growing companies to manage workforce operations within one ecosystem.
9. Can QuickBooks ERP support multi-currency and multi-language needs?
Yes, QuickBooks Online and QuickBooks Enterprise both offer multi-currency support. However, language options are limited. Businesses with international operations can still use QuickBooks ERP, but may need additional integrations or custom configurations to fully support localization and international compliance.
10. What are the main limitations of QuickBooks ERP?
Some limitations include:
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Lack of native ERP structure: Not built as an ERP from the ground up
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Integration complexity: Requires managing multiple applications
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Limited advanced manufacturing features: Not ideal for heavy industry or engineering firms
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User caps: QuickBooks Online has limited user seats
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Reporting depth: May require add-ons for advanced analytics
Despite these drawbacks, it still offers tremendous value for many small and medium-sized businesses.
11. How difficult is it to set up a QuickBooks ERP system?
Setting up QuickBooks ERP is much faster and simpler than deploying a traditional ERP. It generally takes a few weeks to a couple of months, depending on the number and complexity of integrations. Businesses with IT consultants or experienced software advisors can expedite this process even further.
12. What types of businesses should consider QuickBooks ERP?
QuickBooks ERP is ideal for:
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Retail and eCommerce stores
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Wholesale and distribution companies
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Light manufacturing operations
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Professional service firms
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Construction and contracting businesses
It’s best suited for small to mid-sized enterprises looking for a cost-effective and scalable system.
13. Can I customize my QuickBooks ERP system?
Yes. One of the biggest advantages of QuickBooks ERP is customizability. You can choose specific integrations based on your needs. Whether it’s inventory, shipping, customer service, analytics, or project management—there’s likely a compatible tool available in the QuickBooks App Store or via third-party platforms like Zapier.
14. What kind of support is available for QuickBooks ERP users?
Intuit offers dedicated customer support, and many third-party apps provide their own assistance. In addition, there are:
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QuickBooks ProAdvisors
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Online forums and communities
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Video tutorials and training courses
Support is widely accessible, both for the core software and its integrations.
15. Is QuickBooks ERP a long-term solution?
Yes—if your business remains within small to mid-sized scale, QuickBooks ERP can serve as a long-term solution. Its modular nature means you can keep upgrading or changing tools without overhauling your entire system. However, extremely large or complex enterprises may eventually outgrow it and need a more robust ERP platform.
16. How much does a QuickBooks ERP setup cost?
Costs vary based on:
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QuickBooks subscription (Online or Enterprise)
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Number and type of integrations
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User licenses
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Consulting or IT support
A basic setup might cost a few hundred dollars per month, while more advanced configurations could reach thousands per month. Compared to traditional ERP solutions, this is still relatively affordable.