As your business grows bigger and more successful, you may realise that having different software for different functions becomes more of a disadvantage than a benefit, especially when you’re trying to collect data for reports or micro-manage your business.
Enterprise resource planning refers to software that allows firms to manage daily business tasks that include a range of activities such as accounting, financial management, regulatory compliance, supply chain operations, budget management, etc.
ERP will also ensure that you can quickly figure out areas of improvement, losses, leakages, and future opportunities through its in-depth analytics and strong calculation system. Your business will require certain ERP features from this software to make it worthwhile for your investment.
While ERP may seem like a significant investment, and the work to transfer all data onto the platform may seem arduous, there are definite advantages to using the software.
Many firms decide to switch over to ERP when they want to centralise and streamline their data and functions onto one source. However, while all ERP software may offer this function, each provides a different level of centralisation.
While some ERP software may only streamline essential functions, primarily in finance, others will go a step beyond and offer functions for all departments on their software. The more data and functions you can centralise through ERP, the better.
Some ERP software systems will only run on your local servers and may even need data backup locally. This may end up being costly for you and will only provide you with local access (unless you get multiple data servers).
On the other hand, other ERP software may provide you with cloud services that ensure you don’t have to worry about data storage. Cloud services also offer you the benefit of accessing the ERP software from anywhere at any time.
Detailed Analytics and Data Reporting
Analytics is one of the most important ERP features, and that is because it provides you with data insights. These insights are what ultimately help businesses form future strategies and plan to propel their businesses forward.
With ERP software, you can also get detailed reports into almost any component, department, or aspect of your firm at the touch of your fingertips. It compiles reports to empower your firm into making detailed plans and enlightening stakeholders to make informed decisions.
Many firms use multiple resources and software to plan, budget, and spend their finances. Not only does this lead to huge gaps in your firm’s finances, but it’s also really inefficient.
With ERP software, all your finances can be on one database across departments and countries, which allows for easier access and less leakage of financial information.
It also analyses your finances to tell you better ways to manage your budget and gives you other invaluable insights.
ERP software can also manage your accounting for you, from simple tasks just as tracking the income and expenditure of departments to more complicated processes such as tax management and multi-currency reconciliation.
Support for Multiple Functions
ERP software can cover various functions, starting from finance to even departments such as Customer Relationship Management. The versatility of ERP software is one of its biggest selling points.
There are a variety of processes that can be done with ERP software, such as:
- Financial Accounting and Management
- Customer relationship management, including activity and performance management
- Supply chain management
- Processing orders and invoices
- Human resources functions such as recruitment, training, and even retirement
There are even marketing features included within ERP software that allow you to do tasks such as contact customers, receive payments, and dispatch orders. You can store multiple customer profiles within the software to better understand the customers and their preferences.
Use ERP to Make Your Business Function More Efficiently
Using ERP software will make your business flourish, and it’s not just because all activities are streamlined into one system. Still, your company can plan better when data is being updated in real-time and analysis is done simultaneously.
ERP software will make your firm a powerhouse, with its ability to track, analyse and understand various business insights. It provides you with actionable reports that help departments individually and firms as a whole as well.
There is simply no other substitute for the utility of ERP software when it comes to planning and coordination. Configure your ERP software to your needs, and watch how your business becomes more organised and streamlined.
There are more ERP features within the software, but this depends on what software your company has decided to go with. The software you choose must cater to your needs and demands in the present and future.