Accounting Essentials, Small Business Tips
Choosing the Right ERP for Accounting
Aug
The quest for something beyond profit-making is the reason for the continuous innovation in the business world. An entrepreneur needs whatever makes life easier, makes business transactions less complicated, and can increase productivity with little effort.
Hence, the birth of the Enterprise Resource Planning (ERP) system. ERP offers a platform for business where all aspects of an organization can be integrated into one system. As a result, it has become an important tool in the hands of entrepreneurs in Canada. The software is designed to help integrate a business organization’s planning, organizing, marketing, finance, human resource, etc. In other words, the ERP system is unique to each business and therefore has to fit your kind of business; otherwise, you are heading for a risky expenditure.
ERP Today
All credits to the level of productivity it gives to any business unit adopting it., it has become one of the most important tools in the hands of entrepreneurs across all industries.
According to the latest official statistics on key small businesses, as of 2021, there were about 1.22 million employers in Canada. 97.9% were small businesses, 1.9% were medium-sized businesses, and 0.2% were large businesses. This implies that about a million businesses demand the ERP system because business today is no longer how it used to be. The fierce competition in the marketplace has transformed the business environment and practice. It has gone beyond the need to make a profit. There is a need for more; cost reduction and profit maximization, and all of these must be achieved via the most convenient means.
The ERP system can be adopted by all kinds of businesses, whether small, medium, or large-scale businesses. However, it is preferred by small businesses to stay with accounting systems as it fulfills most of the requirements for small or medium sizes businesses. SMBs may be priced out of the ERP market as ERP solutions may qualify as expensive solutions. With the ERP system, you can tell your level of progress because it serves as business intelligence. In Canada, most businesses have chosen ERP solutions for several reasons;
● It helps a business control its inventory. This alone can help control wastage and maximize materials’ utility, especially for those in the manufacturing industry. Using the ERP system can track the availability of business inventory.
● The interconnectivity of the ERP system allows for efficiency. For instance, it is easier for the production department to track the sales department to know the demand rate and then the rate at which production is meant to take place.
● The resource planning software solution allows for teamwork from around the world. This is possible because it is modeled to support different languages and currencies. Therefore, for multinational organizations, it allows for teamwork.
● And for small business owners, it allows entrepreneurs the liberty to perform several functions easily.
Resource Planning Software Solution For Industries
The best part of the ERP system is that it can be modeled to suit all business needs. It is software that is relevant in all types of industries. The resource planning software solution will make administrative tasks less cumbersome, whether a small, medium or large-scale business enterprise. It is relevant in;
● Manufacturing Industry:
Here, the ERP is useful for inventory tracking, data analysis, supply chain analysis, maintenance, performance tracking of equipment, quality assurance, and human resource management
● Hospitality Industry
Customer satisfaction is the goal of the hospitality industry. The ERP system will help a business easily by helping through personalization. Other things made available on the software are; inventory management, housekeeping, and maintenance, room booking system, and guest and front desk management.
● Health Care
ERP for a health system includes medical data compilation in the most confidential and accessible way. Meanwhile, the business aspect of the healthcare organization is not left out. An ERP system will keep operational performance updated, keep inventory checked, the human resource management, etc. Most of all, it helps keep the organization in check for the industry’s compliance.
● Construction
In the construction industry, ERP makes room for the management of; assets, human capital, project, vendor, inventory, customer relationships, bids, financial, contractor, etc.
● Retail
A retail business ERP will include the CRM, inventory management, allocation of stocks, customized offers and product discount, HRM, etc.
Best Small Business ERP
When it comes to the best small business enterprise resource planning providers; some of the leaders in the market are;
● Oracle Netsuite
● Sage Intacct
● SAP Business Design
● FinancialForce ERP
How to Select The Right ERP
The best ERP systems are characterized by their versatility, pricing, problem-solving capacity, inclusiveness, etc. However, ERP is not one of those systems you can get without a consultant because the best ERP system might not be the right one for your business organization. Therefore, you need an ERP software selection consultant to help you decide the suitable ERP for your unique business and get the most out of the system.
If you have to choose by selecting your ERP system, you must look out for the following things;
1. The Benefits
As a business organization, too much emphasis should not be laid on the cost of acquiring an asset. The ERP system is an asset that aids productivity. Therefore, emphasis should be made more on the system’s functionality and ease of access. A system that costs more will most likely help you achieve more than the cost of acquiring the system.
2. Your Requirement
A business organization should not jump into getting the ERP system for the hype around its functionality. The ERP is meant to be unique to each business organization. Therefore, you should spend time making a list of what you require for the smooth running of your organization.
3. Have a system strategy
You are bound to take a fall when you get the system just because everyone is getting one. In the first place, a business ought to have a scope of operation so that it will be a guide into the type of system required by your organization.
4. The Delivery
Regardless of the hype or name of the most popular or best ERP systems, as a business organization, your priority should be on the system that can deliver exactly what your business requires. Additionally, a business priority should be on the vendor’s ability to provide the complete package; reference site visits, calls, training, etc.
Migrate to the right ERP Solution
As a leader in the provider of the best small business ERP, Acumatica understands the need for growing small business ventures to integrate their accounting data into the ERP.
We are an accounting conversion/migration specialist that offers professional services that begin with setting ERP to fit your business organization and continue with periodic checks to ensure that you optimize the software’s usage. If you need to move your accounting data to the ERP, SaaS Direct is a certified Acumatica partner that can provide professional services offer for your accounting data migration from any accounting software to anywhere. Talk to us today for expert advice on how to make the switch hassle-free with zero downtime to meet your needs.
