D.C. Memo: Hegseth in the hot seat


WASHINGTON — After King Charles III, who gave a rare address to a joint session of Congress, Defense Secretary Pete Hegseth received the most attention on Capitol Hill this week.

Hegseth spent two days being grilled by members of the House Armed Services Committee and the Senate Armed Services Committee, in often combative exchanges that largely centered on the war in Iran.

Democrats on the panels focused their questions on the economic impact of the war on everyday Americans, especially Iran’s closure of the Strait of Hormuz — through which notable quantities of oil, fertilizer and other commodities flow — which has caused prices to rise.

Hegseth, who derided Democrats as “the biggest adversary we face at this point” because of their scrutiny of the war, deflected questions about an “endgame” of hostilities with Iran, which on Friday will have lasted 60 days.  

The hearings were intended to focus on the Trump administration’s record $1.5 trillion proposal for the defense budget, which has been boosted by the cost of the war.

Jules W. Hurst III, the Pentagon’s acting comptroller, testified on Wednesday that the Iran war has already cost $25 billion.

But other issues ruled the day. Besides questions about the reason for the war — which Hegseth said was to prevent Iran from having nuclear weapons — Democrats focused on Hegseth’s purge of senior military officials, including generals and admirals, often without public explanations.

“It’s very difficult to change the culture of a department that has been destroyed by the wrong perspectives with the same officers that were there,” Hegseth said.

Hegseth pushed back against other Democratic criticisms and said the war has been “an outstanding military success” even as Iran continues to halt shipping through the Strait of Hormuz and has rejected U.S. offers that would end hostilities.

A fragile cease fire could soon end. Axios reported that top U.S. military leaders, including Admiral Brad Cooper, the head of Central Command, ​planned to brief President Donald Trump on Thursday on potentially renewing military action against Iran.

The only Minnesota member of an Armed Services panel, Rep. Brad Finstad, R-1st District, skipped the six-hour House briefing on Wednesday even though the star witness was fellow Minnesotan Hegseth.

A spokeswoman for Finstad said the lawmaker was tied up with “ongoing floor activity” and last-minute negotiations over the farm bill.

A ‘skinny’ farm bill 

The so-called “skinny farm bill” was approved on a 224-200 House vote Thursday after a provision that would have prevented individual states from implementing tougher pesticide and herbicide regulations than in federal law was stripped out.

The provision was strongly opposed by Make America Healthy Again (MAHA) advocates who said it provided a “liability shield” to protect Bayer from allegations that its Roundup herbicide and its chemical glyphosate cause cancer.

Still, most Democrats voted against the bill, including Rep. Angie Craig, D-2nd District, the highest-ranking Democrat on the House Agriculture Committee, and the state’s three other Democratic House members. 

Democrats sought to undo new restrictions on people who receive assistance from food stamps, officially known as the Supplemental Nutrition Assistance Program (SNAP.)

Those new limitations, which also include the reduction to many states — including Minnesota — of federal funds to administer the program, were included in last summer’s “big beautiful” bill that codified much of President Donald Trump’s agenda. But, because of GOP opposition, an attempt to restore the food stamp cuts failed.  

“This farm bill is three years late and still falls short for farmers and the American people,” Rep. Betty McCollum, D-4th District, said in a statement. “Last year the Republicans forced through their incredibly unpopular Big Ugly Bill, which has so far kicked 3.4 million people off SNAP. This farm bill could have restored those cuts to SNAP but instead continued them.”

Democrats also objected to the bill’s inclusion of a provision to pre-empt animal welfare regulations in California, Massachusetts and other states that prohibit the importation of meat from animals raised in inhumane conditions.

The bill also failed to include provisions that would help Minnesota’s booming industry of hemp-derived THC-infused gummies, drinks, other edibles and CBD products.

But an amendment that would have reversed the ban and instituted new federal regulations on the industry was withdrawn, either because it did not have enough support or because GOP leaders sought to persuade fellow Republicans from including measures in the farm bill that would threaten its chances of approval.

Also withdrawn was a second amendment sponsored by Rep. James Comer, R-Ky., and Reps. Ilhan Omar, D-5th District, and Kelly Morrison, D-3rd District, that would have postponed the hemp-THC ban until November 2027. 

Under the new federal law, hemp-derived THC products would still be available in Minnesota and other states that allow for their production and sale, but the industry would shrink and there would also be fewer consumer choices as these products would have the same federal restrictions as marijuana.  

The effort to keep hemp-based intoxicating products legal under federal law, which is opposed by the nation’s marijuana and alcoholic beverage industries, crosses party lines and has created interesting alliances. For instance, Comer, the head of the House Oversight and Government Reform Committee, has recently submitted a complaint against Omar to the House Ethics Committee based on a filing — which the Democrat has since amended — that showed the values of her husband’s businesses had soared.

Although President Donald Trump supports the imminent hemp ban, he pressed Congress last week to amend it so CBD products that contain more than the new limit on THC, which is 0.4 mg, remain on the market.

“I am calling on Congress to update the Law to ensure that Americans can continue to access the full-spectrum CBD products they have come to rely on, and that help them, while preserving Congress’s intent to restrict the sale of products that pose Health risks,” the president said in a Truth Social post.

The farm bill the U.S. House approved on Thursday was called a “skinny” bill because most of the money for farm subsidy and conservation programs, as well as crop insurance programs, was included in last summer’s “big, beautiful” bill.

But key policy changes American farmers are seeking were not in the “big, beautiful” bill, so a new farm bill was needed.

In a post on X, Rep. Brad Finstad, R-1st District, hailed House approval of the bill, which will be reconciled with a Senate-passed farm bill.

“My @HouseAgGOP colleagues and I have put together a strong, bipartisan Farm Bill that delivers certainty for farmers and rural communities across southern Minnesota and the country,” Finstad said. “I’m proud of the work we’ve done to pass this essential legislation in the House. I call on my Senate colleagues to do the same, and I look forward to sending it to President Trump’s desk.”

ICYMI:

▪️ Matthew Blake wrote that retiring Gov. Tim Walz, in his last State of the State address, said “it’s been a difficult seven years” for Minnesota but focused on accomplishments that he said made the state a better place.

▪️ Metro reporter Trevor Mitchell found that eviction filings are rising much faster in the Twin Cities area than solutions that would keep people in their homes. 

▪️ Reporters Matthew Blake and Brian Arola wrote that solutions to a thorny problem — the replacement of ancient computer systems used by the state government to distribute benefits — are elusive.
 
▪️ The chance to win the congressional seat of Rep. Angie Craig, D-2nd District, has drawn a trio of veteran DFL lawmakers who are now in tight competition for their party’s endorsement. 

This and that

A reader commented on a recent story about Rep. Tom Emmer’s ability to raise millions in campaign cash and donate generously to other GOP candidates, largely because Emmer is a member of the House Republican leadership.

“How many special favors to his billionaire masters has he traded to amass his war chest to maintain his power?” the reader asked. “What achievements for his district does he plan to run on? His district contains St. Cloud, the most troubled regional city in Minnesota. What has he done for St. Cloud State? How about extending the train to St. Cloud or fixing chronic congestion on 94? Keeping people on health insurance and in affordable housing? Protecting children with vaccines and from gun violence? Keeping hospitals, family farms and small businesses going…” 

Please keep your comments, and any questions, coming. I’ll try my best to respond. Please contact me at aradelat@minnpost.com.



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Recent Reviews


For many small business owners, QuickBooks is the first accounting software they turn to when starting out. It’s affordable, user-friendly, and handles basic bookkeeping needs well. 

However, these early benefits can transform into frustrating limitations as businesses grow—especially those in manufacturing or inventory-heavy industries.

If your company feels constrained by QuickBooks—juggling spreadsheets, add-on tools, or workarounds—it might be time to consider a cloud-based Enterprise Resource Planning (ERP) system. Unlike standalone accounting software, a cloud ERP integrates all your business operations in one place: accounting, inventory, sales, customer management, and more.

Let’s explore the five key reasons small businesses are making the switch from QuickBooks to cloud ERP systems and how you can make this transition smoothly.

1. Too Many Separate Tools (No All-in-One System)

The QuickBooks Pain

QuickBooks focuses primarily on bookkeeping, forcing companies to rely on separate systems or spreadsheets for other critical functions:

  • Inventory tracking
  • Order management
  • Customer relationship management (CRM)
  • Project management
  • Human resources

This disjointed approach means data gets re-entered multiple times in different places—a major productivity killer. Teams often export data from QuickBooks into Excel for analysis or to manage tasks that QuickBooks can’t handle. Unfortunately, this manual patchwork leads to errors, from duplicate entries to missed updates.

Why Cloud ERP Helps

An all-in-one cloud ERP connects your entire business in a single system, eliminating the need for multiple applications. Your accounting, sales, customer information, inventory, and even HR can live in one platform.

When a sale is made in an integrated ERP, the inventory is automatically updated and accounting records are adjusted in real-time—no more exporting and re-keying data between separate software. 

This not only saves effort but also improves the accuracy and consistency of information.

Real-World Example

One small distributor that left QuickBooks for a cloud ERP was able to combine their core business processes in one system and saw their sales conversion rate increase by 200%. 

2. Limited Inventory Management (Especially for Manufacturers)

The QuickBooks Pain

QuickBooks was not designed for complex inventory or manufacturing needs. It can manage simple product lists and stock counts but lacks advanced inventory features that growing manufacturers and distributors need:

To compensate, businesses end up using separate inventory software or manual methods to track these details, which is cumbersome and error-prone.

Additionally, forecasting demand or managing supply chain complexity is beyond QuickBooks’ scope. Many companies try to plug the gaps by layering on third-party inventory tools or add-ons, but without proper integration, this creates more problems than it solves.

Why Cloud ERP Helps

Cloud ERP systems like Striven are built with robust inventory and manufacturing management capabilities out of the box. For example, modern ERPs provide tools for:

  • Complete inventory control across multiple locations
  • Warehouse management with real-time updates
  • Multi-level bills of materials (BOMs)
  • Work order creation and production tracking
  • Lot and serial number traceability
  • Supply chain management
  • Automated low-stock alerts

Inventory-related tasks that were tedious become much more manageable. 

Need to know the exact quantity on hand, allocated to orders, and on order from suppliers? An ERP can show it in one dashboard. 

Want automatic alerts when stock is low or when production is delayed? ERP can automate that.

Real-World Example

Imagine a small electronics manufacturer using QuickBooks: they might list parts in QuickBooks but manage assembly instructions and component tracking in spreadsheets. This often leads to confusion over which parts are used in which product version.

After moving to an ERP, that manufacturer can store their bill of materials and production steps directly in the system, ensuring everyone from purchasing to production is working from the same information.

3. Hitting Limits as Your Business Grows (Scalability Issues)

The QuickBooks Pain

QuickBooks works well for small transaction volumes and a few users, but many businesses eventually hit the ceiling of what it can handle. You might experience:

  • Sluggish performance
  • File size warnings
  • System crashes as your data grows
  • User limitations (often capping out around 30 users in Enterprise)
  • Slow report generation
  • Risk of file corruption with large data sets

Multi-location businesses or those expanding into new product lines also struggle, as QuickBooks lacks support for multi-entity consolidation or advanced multi-warehouse operations. And while QuickBooks Online lifts the physical file size issue by being cloud-based, it introduces its own limitations.

Another growth-related limitation is user permissions and controls. QuickBooks offers only basic user roles, which can cause security or compliance concerns as your team expands.

Why Cloud ERP Helps

Modern cloud ERP systems are built on enterprise-grade databases that can handle much larger transaction volumes, datasets, and concurrent users. There’s no heavy local data file to maintain, and you won’t need to “close the year” or truncate data to keep the system running smoothly.

Cloud ERPs support unlimited users (with appropriate pricing plans) without a hard cap like QuickBooks has, so you can add new team members as your company expands. 

The cloud infrastructure also means you get global access: whether your team grows into multiple offices or remote work, everyone can use the ERP in real-time from anywhere.

In terms of raw capacity, an ERP can manage hundreds of thousands of inventory items or transactions without performance issues. This scalability ensures you won’t outgrow the system in a few years—a key point since migrating software is an investment and you want a long-term solution.

Real-World Example

A family-run manufacturing business had five users on QuickBooks to start, but as they grew to 20+ users across accounting, sales, and warehouse teams, they constantly ran into user lockouts and slow performance. 

They switched to a cloud ERP, allowing everyone to work concurrently without downtime. They noticed that tasks like monthly financial closes and inventory valuation (which used to strain QuickBooks and take days) were completed in a fraction of the time.

4. Lack of Real-Time Visibility and Reporting

The QuickBooks Pain

QuickBooks provides standard reports (P&L, balance sheet, basic sales reports, etc.), but offers little flexibility or real-time insight beyond the basics. 

It doesn’t have custom dashboards to monitor key performance indicators (KPIs) live, so you’re often stuck exporting data to Excel or running separate reports and combining them to get the information you need.

If you want to see a combined view of data—say, financial metrics alongside inventory levels or sales pipeline information—QuickBooks alone can’t do that, because it doesn’t manage those other areas fully. Many businesses find themselves making decisions on outdated or incomplete data.

Drilling down into data or generating specific custom reports (e.g., profitability by product line or sales by region and industry) is cumbersome in QuickBooks. You often have to export and manually manipulate data, which is time-consuming and prone to errors.

Why Cloud ERP Helps

Cloud ERP systems excel at providing a holistic, real-time picture of your business. Because an ERP ties together different functions, you can get combined reports and live dashboards that show data from across the company.

ERP reporting tools are usually more powerful, with the ability to slice and dice data by various dimensions (by product, by department, by customer, etc.). Rather than being limited to canned reports, you can get answers to specific questions.

Another benefit is real-time data access. With cloud ERP, that information is visible in reports as soon as an invoice is posted or a production batch is completed. No end-of-day sync is required between systems. This immediacy means you’re always looking at current data, not last week’s numbers.

Real-World Example

A small wholesale firm using QuickBooks had to wait until the end of each month to truly understand its profitability and inventory status because its accountant would finalize the books, and then management would review the reports.

By adopting an ERP, they moved to continuous reporting—managers could check dashboard metrics daily to see if they were on track. They set up alerts (such as if weekly sales drop below a threshold or if any invoice is overdue by 30 days) so they could act immediately.

5. Manual Work, Errors, and Lack of Automation

The QuickBooks Pain

Because QuickBooks handles only part of your operations, there’s often a lot of manual work and duplicate data entry involved in running the business. Consider the process of fulfilling an order: an employee might take an order in a CRM or via email, then manually create an invoice in QuickBooks, then separately update a stock spreadsheet. Each manual step is an opportunity for errors.

QuickBooks has minimal workflow automation. It can automate recurring invoices or bills, but it can’t do things like:

  • Automatically routing a purchase order for approval
  • Triggering a production job when an order is entered
  • Generating pick lists for the warehouse
  • Enforcing proper approval workflows

Businesses end up developing workarounds, such as using email to ask a manager to approve expenses or maintaining checklists to ensure steps are followed. This adds to management overhead, and sometimes, things slip through the cracks.

Lack of internal controls is another facet—QuickBooks’ simplicity means it doesn’t enforce the separation of duties well. Any user with enough permission can backdate or edit transactions without a clear audit trail, which can be problematic for catching errors or fraud.

Why Cloud ERP Helps

A good ERP allows you to automate and streamline many processes, reducing manual intervention. You can set up workflow rules:

  • When a sales order is entered, the system automatically creates a pick list for the warehouse
  • When inventory falls below a threshold, it can auto-generate a purchase order draft or send an alert
  • When a bill is entered over a certain amount, it can be forwarded to a manager for approval before payment

These automations ensure nothing is forgotten and employees don’t have to remember every little step—the system guides them.

Another advantage is role-based controls and audit trails. In most ERPs, every transaction can be tied to a user and you can see a log of changes. Permissions can be finely tuned so that, for example, one person can create a purchase order, but it requires a separate person to approve it, enforcing a checks-and-balances system.

By automating routine tasks and removing manual double-entry, your team can focus on more valuable activities—like serving customers or improving products—instead of administrative busywork.

Real-World Example

A services company using QuickBooks was manually tracking project hours in a spreadsheet and then entering summary invoices into QuickBooks. They switched to an ERP that had time tracking and project management built-in.

Now, consultants log hours directly into the ERP, and invoices are generated with one click from those hours, eliminating multiple manual steps. 

They also set up an approval workflow for timesheets and expense reports in the ERP—replacing a clunky email-based process—which ensured nothing got paid without the right checks.

How to Switch from QuickBooks to Cloud ERP Successfully

Transitioning to a cloud ERP doesn’t have to be overwhelming. Once you have done your research and selected your best fit from the leading ERP systems. Follow these streamlined steps:

1. Plan and Prepare

Identify your key requirements and pain points with your team. Set a realistic timeline that avoids your busiest periods. Assign an internal project lead and work with your vendor’s implementation team.

2. Clean Your Data

Before migration, remove duplicate entries, archive inactive records, and standardize your data formats. Don’t bring years of accumulated junk data into your new system.

3. Migrate Strategically

Import in stages: master records first (customers, vendors, items), then open transactions, and finally, essential historical data. Test with small batches before full migration and always back up your QuickBooks data.

4. Train Your Team

Provide hands-on training in a test environment, focusing on demonstrating the benefits and efficiency gains. Create simple procedure guides and identify internal champions who can support their colleagues. Schedule training sessions with your vendor or use online tutorials (Striven, for example, has the “Striven University” resources for new users transitioning from QuickBooks). 

5. Go Live and Refine

Launch at the start of a financial period with support ready. Expect a learning curve and work closely with your ERP’s support team. Once stable, gradually explore advanced features and continue optimizing the system to match your evolving needs.

Final Thoughts: A Strategic Decision for Growth

Making the jump from QuickBooks to a cloud ERP is a significant move for a small business, but it comes with significant benefits. You’ll be able to run your business with far greater efficiency, accuracy, and insight than before—whether it’s knowing exactly what your inventory levels are, automating routine tasks, or getting financial reports at the click of a button.

The five reasons above are the most common drivers: businesses crave an integrated system, more robust features, scalability, better information, and automated workflows. 

Cloud ERPs deliver on those needs, helping even small companies operate with the sophistication of a much larger enterprise. With a careful, well-planned implementation, you can make the transition without disrupting your operations. 

In the end, moving to an ERP isn’t just an IT upgrade—it’s a strategic decision to upgrade how your business works.

About the author: Christina is the founder and executive director of Top10erp.org, with over 20 years of experience in online technology platforms. After five years as general manager for prominent accounting software research platforms, she recognized manufacturers needed specialized resources for their complex ERP needs. In 2008, she founded Top10erp.org to streamline the challenging ERP selection process for manufacturers through advanced product indexing and comparison technologies.

The post 5 Reasons Small Businesses Switch from QuickBooks to Cloud ERP appeared first on Striven.



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