A Guide to ERP for Small Business

Enterprise Resource Planning (ERP) is a software system that automates and manages the core business processes to optimize business performance. Organizations gain increased business visibility and enhanced profitability by following the ERP implementation steps for small business, automation, data centralization, and removal of task redundancies.

Most small business ERPs feature integration, automation, Business Intelligence, Accounting, Manufacturing, Data Analysis, Tracking and Visibility, Human Resource Management, Supply Chain Management, Customer Relationship Management, and Customer Service.

The key features of ERP for small businesses are: 

• The Accounting feature aids in managing the allocation of resources and simplifies financial reports.
• The Analysis and Reporting feature provides detailed data to aid in decision-making.
• Automation feature in the ERP for small businesses removes task redundancies for enhanced efficiency.
• Business Intelligence assists in decision-making.
• Customer Relationship Management in an ERP for small businesses handles all interactions with existing customers and prospects.
• The customer service feature entertains customer queries and retains them.
• Human Resource Management feature in ERP for small businesses enables organizations to conduct HR functions accurately.
• The Inventory Management feature ensures that optimal stock levels are always maintained. 
• The Manufacturing feature improves forecasting, so the small business’s budget can be rightly allocated. 
• The Supply Chain Management feature in the ERP for small businesses tracks the movement of goods through the entire supply chain.

ERP has benefits and limitations to consider as a small company. Growing business needs call for the need to upgrade to a suitable ERP for small businesses. Making the correct choice means you don’t spend extra and use what you need. This is particularly helpful when your business is tight on the budget situation.

Since many Enterprise Resource Planning software operates in the cloud, you can now access your ERP cloud vs ERP data remotely. Companies that opt for the cloud model of ERP for small businesses can effectively address security concerns, too, as information is protected in the cloud.

That said, SMBs should no longer shy away from opting for ERP for small businesses, as not only effective in several ways but also no longer that expensive. Understanding the differences between ERP and CRM will help a small company determine which feature sets are most useful and affordable.

Startups and SMBs need an ERP for small businesses to enhance their operational efficiency and gain competitive advantages. ERP for small businesses enables information sharing and collaboration by connecting and integrating all departments within the company. Furthermore, with an ERP for small businesses, SMBs and startups can benefit from ‍BI-powered decision-making and enhanced throughput by automating processes, eliminating task redundancies, and increasing efficiency. ‍

An ERP for small businesses enables SMBs to maximize profits by managing critical operations and providing an accurate view of the workflows. With an ERP for small businesses, you can access your company's data in real-time. It's important to be aware of ERP integration benefits and challenges as you're choosing an ERP so you can properly plan for a successful implementation.

This can trickle down to faster deliveries, an improved reputation, and expense reduction in an ERP for manufacturing. An ERP for small businesses links all of your lines of business to a single database, lowering data redundancies and saving operational time. Some key benefits of investing in an ERP for small businesses are:

• The client organization can reduce inventory and operational costs and significantly reduce purchasing errors. 
• Consolidated business information accessible in real-time leads to improved coordination, better decision-making, and less miscommunication.
• A fully integrated accounting system makes accounting tasks more manageable and financial reporting more accurate.‍
• An efficient and effective sales team that makes faster and more accurate estimates and quotes.

Planning an ERP project will rely heavily on costs. ERP for small businesses has two pricing models: subscription plans and perpetual licensing. Subscription plan payments are made monthly, quarterly, or annually, granting users access to functions based on their pricing tier. On average, monthly charges per user are around $250. Whereas in the perpetual licensing model, there is only a one-time licensing fee which, on average, costs between $1,500 – $2,500 per user.

There is a wide variety of options for ERP for small businesses. Therefore, a thorough analysis is needed to ensure that you choose an affordable ERP system that fits your unique business requirements. Think of what your company needs. If you have clients, one of your phases of ERP implementation will be to consider an ERP system with CRM functionality. Also, view reporting methodologies and the number of users browsing for ERP for small businesses.  That said, some of the best ERPs for small businesses are:

• Acumatica
• Microsoft Dynamics GP
• NetSuite
• Sage Intacct
• SAP S/4HANA

With software designed as ERP for small businesses, companies have found affordable and secure enterprise resource planning solutions.