25 Oct What is ERP software?
Bigger clients are making the move to a more integrated software ERP solution.
ERP is an industry acronym for Enterprise Resource Planning. But what does that actually mean? Broadly speaking, ERP software is a platform that enables the automation and integration of a company’s core business processes, such as core accounting, job management, inventory management, etc. In order to do this, ERP systems need to be sophisticated enough to have a complete understanding of all the aspects required to drive those business processes. This is why ERP systems are generally considered the ‘next step up’ from basic accounting systems such as QuickBooks, Xero and MYOB.
The goal of ERP software is to ensure your company is successful. It is designed based on three essential fundamentals: integration, flexibility, and functionality. Let’s talk about what each of these foundations means for your business, and how it can add value to your business.
Many small businesses buy entry-level systems to manage their core financial needs and over time will purchase add-ons for more specific business requirements, such as point of sale, Job costing, etc. However, as the business grows and the business expand, you may find that you rely on several different pieces of software including Excel spreadsheets, to maintain the day-to-day running of the business.
With an ERP system, there is no need to deal with messy add-ons or spreadsheets, as it integrates all areas of business in one, easy to use system. This saves you time and effort as the bulk of the work is done by the core ERP package. ERP software allows for simpler management of business processes, whilst improving functionality with a more powerful reporting and improved business automation.
While basic systems can restrict the growth of a business, ERP software is designed to be flexible in order to accommodate the needs of a business now and into the future. With an ERP system you can take advantage of the modular design that allows the software to grow with your business, and incorporate comprehensive functionality that can be modified to suit your needs. A key benefit of a modular design is that you can turn on and off modules as you require them. For example, perhaps you start exporting your product overseas, and decide to add a Foreign Debtors module to your software suite, or perhaps you decide to move your business online and require an E-Commerce module. This allows the ERP system to grow at the same speed as the business, keeping costs in perspective.
As a result of the integrated and flexible modular design, ERP systems today are functionally rich. With the ability to turn on and off modules and functions to suit the needs of the business, the ERP software will never be too complex or simple to use. Furthermore, the streamlining of processes and information across the entire business will add functionality to day-to-day activities. The full integration of key areas will allow you to see the ‘big picture’, rather than having to examine each section individually when making important business decisions.
The fact that ERP software is fully integrated means that each area of the system speaks to each other, providing greater depth of detail and functionality with more powerful reporting and improved business automation. ERP software solutions are specifically designed to help you grow your business, step by step, function by function providing many valuable benefits such as the ability to automate certain business processes, for example the reordering of stock or run multiple branches as autonomous businesses and get consolidated reporting at the push of a button.
Taking Your Business to the Next Level
Upgrading your business management software may seem like a daunting task and choosing an ERP solution can be confusing, but if you arm yourself with the right information you can get started on the right foot and be on your way to a successful software upgrade. To evaluate what issues and processes you need to consider, and learn how to take the first steps to the next level with an Enterprise Resource Planning (ERP) solution, click the download button below for our no obligation Triumph Business Systems white paper on “Taking Your Business to The Next Level”, and take the first step to help your business grow.