All businesses, no matter the size, should be utilizing some sort of accounting software to manage their finances. However, ERP (Enterprise Resource Planning) is a system that all businesses who want to be successful should utilize. Fortunately, software for enterprise accounting is more available than ever.
What Is ERP Software?
ERP software is basically software for enterprise accounting. It has all the same features as any accounting software but features so much more for improved planning in business growth. So while your accounting software tracks your income, expenses, payroll, and any billing and sales applications, ERP Software can also track Human Resources, Productions, and even sales. It looks at your business as a whole picture rather than a financial snapshot.
Isn’t It Time Consuming?
The short answer is, maybe. With the ever changing technology and the varying needs of the users, it really depends on what you need. If you are a global manufacturer, it might take longer than a small housekeeping business. And if you throw in any special customizations, that can add to implementation time. However, none of those should factor against implementing the software. A small inconvenience in the beginning can still be a big benefit later.
But Can I Afford It?
Naturally, the ERP is going to have a higher price tag than your accounting software. You are getting so much more for your dollar. As always, diligence is key and it’s recommended you ask which ERP system will be the most beneficial for your business. Some things to consider are:
- Project or Product based?
- Cloud-based or on-premises?
- What is your budget realistically?
Producers and service providers have different needs and your ERP should match the basis of your business. Cloud-based ERP systems tend to be lower in cost but isn’t always the best match if you need on premises access. And customization may sound fantastic, but it can be harder to upgrade your systems easily. Some customizations can be pricey as they require more work in order to fully serve you. And of course, your system should not be breaking your budget to a point in which you cannot recover.
Will I Really See A Financial Benefit?
If you utilize all the functions that an ERP offers for your service or product, you should absolutely see a positive ROI (Return On Investment). Here are just a few things to consider:
- Tracking of supplies or products to see how efficiently you are using and selling. It will be easier to spot trouble areas and rectify them, thus saving you money.
- Manage your Accounts Payable in a timelier fashion and take advantage of those discounts. Avoiding late fees and scoring discounts for timely payments will definitely add to your bottom line!
- The ability to know at all times what you have, what you don’t have, and what you need.
ERP software simply adds to an efficient process that will benefit you in the long run. If you truly want to take your business to the next level, an ERP software is what will help you get to that level and go beyond.