ERP: What can it do for small businesses?

In a small business, every workflow is taken into account. A mistake in any of them can cause the business to reduce its revenue and life expectancy in the market. That's why ERP (Enterprise Resource Planning) software is one of the most important investments we can make to improve our operational capabilities.

There are many types of ERP, but they all serve the function of being a support tool to optimize processes in the logistics, sales, accounting and other areas. Today we will learn more about the benefits of this category of software and why they are an excellent resource for growing companies.

4 benefits of ERP for small businesses

1. Optimizes finance and accounting management

Every business has to deal with bank accounts and expenses, as well as manage payroll and inventory. Managing these elements can be difficult with a limited staff, as is the case in small businesses, but an ERP system can optimize financial and accounting management.

Among the functions that we can access with this type of tool, we have:
  • Bank reconciliations.
  • Automation of accounting entries.
  • Centralized management of charts of accounts.
  • Generation of purchase and sales reports.
  • Issuance of electronic invoices.
2. Improve sales management

With an ERP software, we have the option of keeping a detailed stock control, with functions such as the registration of stocked units of each reference, locations, costs and input and output history.

By having this information in a centralized system, it is easier to maintain consistency between inventory and product supply in our sales channels. In this way, we reduce the risk of making mistakes in order placement.

3. Streamlines data analysis

An ERP allows us to unify the company's KPIs on the same platform and visualize the data in a user-friendly environment, with graphics for easy interpretation.

For example, if we want to know why sales have dropped in the last quarter, a software allows us to search for specific products or customers and check how many sales were made compared to the previous period. It is also possible to identify whether customers have shifted to one type of product over another.

4. Save time on data entry tasks

Data entry is one of the most time-consuming tasks in business management. Not only do we have to record customer data, we also have to keep track of all the orders and accompanying invoices.

If we do all this manually, there is always the possibility of errors. An ERP system, on the other hand, automatically updates inventory when new orders are placed. It also allows you to create reports in a matter of seconds, rather than typing everything out by hand for hours (or days).

How to choose an ERP software?

In conclusion, an ERP software helps us improve business management to be more efficient. But how to choose the right one?

Regardless of the types of ERP that exist, it is important that we look for certain basic features to get a software that really brings value, such as:
  • Scalability (the option to access more functions as the company grows).
  • Portability (a cloud solution, so as not to depend on local equipment).
  • Accessibility (the information can be consulted from any device).