ERP (enterprise resource planning) software makes it easy for small- and mid-sized companies to make a quick transition. Adopting the software can be costly, but it delivers significant benefits. Below are some of the areas in which ERP packages can deliver effective, immediate results.
Fast, Automatic Accounting
Accounting can be a substantial source of overhead, but good ERP software can account for transactions as they occur. It covers areas such as those listed below.
- Sales revenue
- Accounts receivable
- Accounts payable
- The cost of sold goods
- Inventory movement
- Accrual of sales tax
- Production costs
- Accrual of commissions
When the ERP software records daily transactions, the company can reduce the need for manual entry and retrieve accurate statements.
Combined Strategic, Operational, and Financial Insight
Individual software packages may focus on certain operational areas such as inventory control, manufacturing, or financial management, but separating data can make it hard to put it back together again. ERP software ties processes and data together to give managers a better idea of what’s going on.
Increased Productivity Through Systems Integration
The cost of inefficient processes can be surprising. If employees use outside systems to ship packages or use spreadsheets to manage daily activities, the company may lose dozens of productive hours each day while increasing the chance of errors. The best ERP systems offer seamless integration with these outside systems, which reduces duplicate data and mistakes.
Greater Security Without Employee Obstacles
Good ERP allows staff to manage processes such as stock counts, order entry, receiving, and shipping. However, while off-the-shelf software may give staff access to sensitive information, ERP allows managers to restrict employee accounts to only the processes they need to do their jobs.
Easy Expansion Without Expensive Upgrades
While ERP systems can be costly, they provide the flexibility needed to expand, open new locations, or change business models. While some old platforms required custom development, modern ERP software allows a great deal of adaptability without customized code. These solutions provide a tailored experience without preventing companies from upgrading or changing processes. For additional information or to schedule a consultation with a trained representative, visit www.technologyevaluation.com today.