6 Reasons to Implement ERP Software

28d4acbInnovative, cloud-based Enterprise Resource Planning (ERP) platforms such as Bizowie ERP are making it easier for small to mid-sized businesses to quickly and affordably make the switch from off-the-shelf accounting software to robust ERP packages.

Adopting ERP can come at a significant cost, but the advantages it offers can be significant. Here are just a few of the primary areas in which a good ERP package can deliver immediate, effective results.

Instant, automatic accounting.

Financial accounting can be a significant source of overhead… but it doesn’t have to be. A good ERP can automatically account for common transactions as soon as they occur, including:

  • Revenue from sales orders
  • Accounts receivable from invoices
  • Accounts payable from bills
  • Cost of goods sold
  • Inventory movement
  • Sales tax accrual
  • Production costs
  • Credit card chargebacks
  • Commission accrual

With your ERP automatically recording all your day-to-day transactions, you can eliminate the need for manual entries and rely on consistently being able to retrieve accurate accounting statements and cost details on your sales orders and production.

Combined financial, operational, and strategic insight.

Individual turnkey software packages often focus on a particular area of operations (such as financial management, manufacturing, or inventory control), but keeping your business data in disparate systems means that it’s difficult to tie the data together to gain insight on your entire business.

ERP systems tie data and processes together so you always have a 360-degree view. Whether you’re viewing costing amounts on a sales order, pulling up a customer’s record and seeing their sales interactions and orders/shipments side-by-side, or forecasting sales using historical sales orders and production data, ERP gives you the “big picture”.

Increase productivity through integration of outside systems.

You might be surprised how much inefficient processes are costing you. If your employees are using outside systems to ship packages, manually copying data from one system to another, or using spreadsheets to manage day-to-day activities, you could be losing hundreds of productive hours every month while increasing the chance of costly mistakes.

Good ERP systems provide end-to-end integration with outside systems, so you never have to double (or triple, or quadruple…) enter data, rely on outside software, or prepare spreadsheets. A few common use cases include:

  • Generate shipping labels, manifests, and BOLs for shipping vendors
  • Synchronize orders from your ecommerce system
  • Transmit shipment instructions to an outside 3PL or warehouse
  • Use EDI to accept orders from large customers; or transmit POs to large suppliers
  • Automatically transmit tax information to government authorities
  • Push time and attendance data to payroll providers or temp agencies

High security… without added barriers for your employees.

A good ERP makes it easy for staff to manage common processes like order entry, stock counts, shipping, and receiving. But while off the shelf software often gives your staff full access to your sensitive accounting and payroll records, ERP systems allow you to restrict employees’ accounts only to the processes that are relevant to their roles.

This type of role-based security means that you can extend access to all your employees, while keeping their permissions locked down so they can only access what they need to do their jobs.

Some ERP systems, including Bizowie ERP, provide flat-rate pricing, which ensures that you won’t get hit with costly per-user prices when you add new employees.

Partner with a vendor that understands you.

Most software companies are focused on delivering a product that meets the needs of every possible customer with a cookie-cutter approach. But you’re not cookie-cutter – you have your own processes, procedures, and competitive advantages that make your business unique.

A good ERP implementation partner will work with you and your team to develop and understanding of how your company works, then tailor the ERP system to meet your needs and requirements.

Easily expand or pivot without costly system upgrades.

There’s no doubt about it – investing in an ERP system can be a costly endeavor. But unlike rigid “off-the-shelf” software, a solid ERP can provide the flexibility necessary to expand operations, bring new locations online, or even change your business model without costly new systems.

While some old-fashioned ERP platforms required custom software development to be truly customized, modern ERP solutions allow a great degree of flexibility without custom code. This type of solution gives you the best of both worlds – a highly tailored experience, without specialized code that will keep you from changing processes or upgrading.