What is ERP for Small Businesses and What are Its Benefits?

Though the “E” in ERP stands for “Enterprise,” businesses of any size can (and should) use a cloud-based ERP solution to replace the multiple business systems they’ve likely cobbled together. By merging financials, sales, inventory, manufacturing, distribution, and CRM needs in a centralized solution, a small business ERP system offers a “single source of truth” drawn from accurate, up-to-date companywide data.

Essentially, an ERP system is the glue that holds an organization together, delivering critical benefits. Let’s examine these ERP benefits more closely.

Greater Workforce Collaboration

With a cloud ERP solution, team members access the same accurate information simultaneously. This ensures everyone is on the same page when working on business-wide projects. The time wasted on verifying information from disparate systems can now be utilized to proactively move projects forward. Seamless communication through shared files in an integrated system helps collaboration between all teams—front-office, back-office, field, and remote.

Easier Team and Resource Management

A small business ERP system enables managers to monitor their teams and resources from one solution. Critical information—such as available inventory and ongoing tasks—is readily accessible. Necessary adjustments can be made quickly and efficiently from a single dashboard, enhancing productivity.

Improved Accounting Standards and Regulatory Compliance

Complying with constantly changing accounting regulations is complex. A cloud ERP for small and medium businesses simplifies this challenge by providing the internal controls, automatic updates, and automated data collection needed to stay compliant with evolving statutes and standards.

Complete Visibility Across the Organization

Before implementing a comprehensive cloud ERP solution, most small businesses rely on disconnected systems, resulting in siloed data. This is time-consuming and often requires manual workarounds. A small business ERP gathers data into a central repository, reducing human effort and providing a 360° view of your business. This access to innovative business intelligence tools delivers actionable insights for strategic decision-making.

Increased Adaptability and Scalability

Cloud ERP solutions offer a level of adaptability and scalability that disconnected, legacy systems cannot match. These solutions allow seamless integration with third-party applications through open APIs, enhancing functionality and improving adaptability. Additionally, you can easily scale your operations up or down with a cloud ERP that accommodates fluctuations in resource usage.