Technology has become an integral part of every business, irrespective of whether the business is based on new-age technologies or not. It helps in accelerated decision-making since it provides visibility into different aspects of the business.
A large organization has multiple departments such as marketing, sales, finance, etc., and most of them work in a coordinated manner. On the other hand, a small business owner needs to shoulder multiple responsibilities to keep the business moving in the right direction. Software that integrates different processes necessary to run a firm brings improved visibility into the internals of business.
Enterprise Resource Planning (ERP) is one such software that is instrumental in facilitating the real-time flow of information between different business functions. Large corporates have used ERP solutions, but SMEs has become equally important. Small businesses have to invest in the right set of tools, and ERP is one such tool that has become essential for ‘any’ type of business.
Many small businesses follow practices such as relying on guesswork for sales forecasts, maintaining numerous spreadsheets for invoicing, etc., that are error-prone and non-scalable. These practices will falter once the business expands, and your competitor that has leveraged technology for making informed decisions will have a competitive advantage.
ERP software features become important so that the concerned team can evaluate the solution from different perspectives. Factors such as ease of use, technical support, banking transactions, inventory management, GST (Goods & Services Tax) compliance, scalability, upgrade frequency, and cost should be considered when choosing the ideal ERP software. Scalability is an important factor since it should be suited for managing a single enterprise or a group of companies. Shown below are some of the integral benefits of ERP for SMEs:
1. Improved decision making –
The data available in an ERP system is visible to different departments (e.g., marketing, sales, finance, etc.) in the organization. Hence, they can work in synchronization to arrive at decisions for the betterment of the business.
2. Better visibility into business functions –
In today’s competitive times, companies with tight-knit departments will thrive in the long run. Business functions in an organization (including SME) should no longer work in silo since it can lead to miscommunication.
As different functions in an ERP system are inter-connected, the business owner has better visibility into the business’s financials. This will help the key stakeholders to make decisions for improving business performance.
3. High Productivity –
Maintaining tons of excel sheets for tracking business performance can hamper your employee’s productivity. On the other hand, ERP software like Tally.ERP 9 by Tally Software boosts productivity, as it helps in streamlining the business processes.
4. Improved Security and Scalability –
Any business owner wants their business to grow leaps and bounds. Along with spotting the right opportunities for business expansion, it is essential to use the right tools to secure and reduce operational expenses.
An ERP solution like Tally.ERP 9 is used by many SMEs and large corporates. It has important security features that ensure that only authorized personnel can access ‘right’ information in the system—many SMEs witness exponential growth. Choosing a scalable ERP solution that is scale-agnostic (i.e., works seamlessly irrespective of its employee strength) can be advantageous in the long run.
Wrapping it up
Whether you are a small enterprise, growing startup, or a large conglomerate, Enterprise Resource Planning (ERP) software is a must-have for businesses. is an integral step to evaluate the software. It helps the concerned teams choose the best ERP software for driving operational and business benefits.