Preferred Retail Systems

During my initial visits with small retail establishments who grew their businesses using QuickBooks, I am often asked why RMS is better. My answer is simple - it is not better, it is different. Understanding the difference between a Line of Business Program (RMS) and an accounting program (QuickBooks) is crucial. And a proper comparison between the two requires a deeper understanding of them both.

Let’s take a broader view of the subject for a little better perspective. Don't worry you won't have to give up your precious Quickbooks!

QuickBooks is an accounting program. Retail Management System is not. It is instead a Line of Business Application (LOB) or a software program designed to specifically automate the processes associated with Operating a Retail Establishment. Like many LOB applications, it does a subset of accounting processes, but in a much more efficient manner than QuickBooks.

As you think about any business, whether it be service or product based, consumer or government oriented, virtual or brick and mortar, they all have a few key accounting functions that must be done over & over & over, without error, without interruption, and as efficiently as possible.

By design, QuickBooks can do all accounting functions, but that same general approach is its weakness when compared with a Line of Business Application. While Retail Management System only does a few accounting functions – namely sales, inventory management, purchasing, and receivables, it does them with extraordinary efficiency.

Comparing the two programs to decide which one is better choice is a bit like choosing the King or another piece in the game of Chess. While the King can clearly move in any direction and kill any other piece on the board, it does so with great risk to the game and with limited efficiency.

Line of Business Applications offer unique capabilities within certain industries and there are numerous LOB’s for each segment of business. They can range from very simple and inexpensive to extremely complex and costly.  But the crucial aspect of this entire discussion surrounds one simple question. Does your LOB application automate your core business processes?

The next question is almost as important – does it integrate seamlessly with your accounting system. And does this automation improve your bottom line by reducing some cost, such as labor, contracted services, or inventory management. If it does not, then what is the point?

The natural progression for a Small Business is to start with a checkbook and a few ledgers, then to add a simple accounting program, and ultimately to adopt a Line of Business application. It is a matter of building upon a successful foundation, not replacing the earlier systems in favor of newer. You would never eliminate your checkbook, and my guess is that you would never eliminate your accounting system once installed. Likewise, adopting RMS would not presume to eliminate your accounting system either.

In the retail business, there are several key processes which must be address and addressed thoroughly. First are the Point of Sale functions and all of the possible details of that process, such as tendering sales, returns, voids, quotes, work orders, layaways, shipping, tax collection, and receipt printing. Second is the management of inventory presented at the Point of Sale, including purchasing, receiving, billing, stocking, and pricing. And finally, customer engagement, which delivers purchase histories, preferences, contact information, and up sale tools.

QuickBooks is a soap box derby in comparison to the Lexus of Retail Management System in these key processes. There is simply no rational comparison. And to prove my point, why does Intuit offer Retail Pro as a POS solution if QuickBooks is adequate.

If you wish to ask a reasonable question, then ask which is better Retail Management System or Intuit Retail Pro. That is a proper question and one that will be addressed later. And just in case you were wondering, my opinion is that RMS is better, but that is another article.