SME planning


24th September, 2021

4 ways ERP can work for small business

Enterprise resource planning systems are now within reach of small businesses and that’s a great thing for them and their advisors.

One of the best ways to solidify a relationship with a small business client is to help them integrate their accounting functions with the operational side of their business. They achieve productivity gains, and you win their gratitude. Everyone is happy.

But how, exactly, can they integrate their processes? Until recently, small and medium businesses didn’t have many good options. The platforms that provide this sort of integration, known as enterprise resource planning (ERP) systems, were too expensive for small players.

Today though, ERP is within reach of your small business clients. Not only are the platforms more affordable, but they’re also more user friendly than ever.

It’s worth taking the time to explain ERP to your small business clients.

After all, if they do take up an ERP and their business flourishes, yours will benefit, too. Try highlighting the following four advantages.

1. ERP enables employees to multi-task

Before ERP systems, each department within a business used a specialised platform to manage a specific task, be it accounting, inventory management or human resources.

But small businesses rarely have clearly defined departments – instead, each employee wears multiple hats.

ERP means employees only need to come to grips with one computer platform to work across various parts of the business. And, because ERP integrates business functions and centralises the information, multi-tasking employees can make better decisions.

2. ERP improves productivity

Using an ERP does more than flatten the learning curve for employees – it can significantly reduce the amount of time a small business spends on tasks such as data entry.

There’s no need to export data from one system and import it into another, and certainly no need to manually enter data more than once.

Employees can spend more time doing fulfilling work, improving job satisfaction and fuelling innovation within the business.

3. ERP increases speed with real-time data

A centralised business system means everyone can access the latest data as soon as it’s available, rather than waiting for it to be distributed between platforms.

Up-to-date data makes decision-making easier and allows a business to respond nimbly to changing conditions.

4. ERP facilitates business growth

ERP systems can reduce the stress and uncertainty associated with rapid business growth.

If a business starts selling more product, for example, the ERP reacts in real time and provides visibility to all departments, which can prevent the situation from becoming overwhelming.

Put another way: an ERP supports growth, whereas using multiple platforms can stifle it.

The easiest way to sum up the benefits of ERP for your small-business clients is by using one word: flexibility.

Whether it’s enabling staff to move between functions, helping leaders react quickly to market changes or providing the necessary data to maintain consistent stock levels, an ERP system helps small business clients remain flexible, so they can tackle any challenge.

That’s a compelling proposition.

Help more clients get good busy with a single system that automates everyday tasks, provides great insights and makes compliance easy. Discover more about MYOB Business today.