How Does ERP System Help Small Business
Businesses will likely encounter various challenges they need to overcome in order to make the company built-in resilience. Powerful solutions that operate effectively are required to maintain dynamic situations according to the right corporate culture, as well as systems that are capable of providing a solid foundation and flexibility to adjust according to the changes within the business.
Enterprise Resource Planning (ERP) might be perfect for this job. It simply automates the core business processes of a company; assisting companies to run business management with real-time data. In addition, the cloud-based ERP gives organizational visibility and mission-critical data on a single platform to collaborate and support the digital workforce.
How Does ERP Help Small Businesses?
1. Complies with Accounting Standards and Regulatory Requirements.
Upgraded legal compliance is vital for both the private and public sector industries. Depending too much on spreadsheets for accounting will eventually create data integrity issues. In addition, new revenue recognition rules also generate challenges for companies. They need to recognize their revenue consistently. This is something older on-premise systems were not set up to handle.
Cloud ERP solutions receive regular updates and automatically pass to the users and handle these types of changes in regulations quickly. It offers a clear pathway to adopting new regulations because change is inevitable.
2. More Accessible Remote Workforce Management and Collaboration.
Thousands of small organizations are still using basic accounting software, but they face a difficult situation when shifting towards home working. They can not meet the new demand of business continuity.
Using Netsuite ERP, the same accounting team can close the book remotely, make the necessary adjustment, and review data. The checklist function of the system enables users to find exactly what steps to take and ensures the smooth running of the organization.
3. Provides a Unified and Accurate Picture of the Business to All Organisation Departments.
Businesses often choose software for specific needs, which is designed to support only a single department. Without complex and costly integration, the data in that system can only be accessible to limited people. It affects the internal circulation of data in the business. As a result, the team cannot work together efficiently, and it affects both productivity and profitability.
Real-time visibility is one of the key features of the cloud ERP solution. It helps the team to collaborate more effectively. Real-time visibility of inventory data promotes sales and marketing by acknowledging in-stock and out-stock of items which leads to increased revenue and makes customers satisfied with your services.
4. Drives Quick Reaction Time
Businesses with separate systems depend on the IT or finance team to collect data and produce reports. Delay in data collection leads to outdated information when it reaches the time for decision-makers.
NetSuite provides a role-based dashboard giving access to all employees. So without any assistance from IT for support, they can access real-time data, make informed decisions faster and easier.
5. Reduce Operational Risks.
An organization can easily fall into dishonest practice when there are no proper accounting and procurement controls in place. ERP helps to eliminate these risks by incorporating authorized workflows into purchases, accounts payable, and other financial processes. In addition, the system has role-based data access to ensure that data stays accurate and in the right hands.
6. Tracks Unit Economics, Customer and Project Profitability.
Unit economics helps companies to measure per-unit based profitability. It is a good practice for future success during this economic uncertainty. Because frequently estimating the direct revenue and cost per unit basis, helps companies to understand profitability and potential of the product line and adjust accordingly. Additionally, cloud-based ERP companies have the visibility to know margins and make predictions about business profits and growth.
7. Help Companies Scale and Adapt.
Generally, at the initial growth of a company, they completely depend upon QuickBooks, spreadsheet, and basic accounting software. Gradually they begin to grow and then their complexity as well. When these organizations decide to open new branches at multiple locations, add subsidiaries or handle multiple currencies there is a need for a more robust system.
While smaller businesses can run on a spreadsheet or basic accounting system at the same time, they adopt cloud ERP it enables them to grow their current business management process as well as be flexible and scalable to acquire future growth.