Small business owners wear many hats. From the hiring, training, accounting, and running day-to-day operations, it can be overwhelming. You are likely stretched thin trying to juggle and carry out all of these tasks.
Taylor Studniski knows the solution may be finding the right tech to eliminate this burden. From experience, Taylor Studniski understands the value of an Enterprise Resource Planning (ERP) system.
These technological systems provide a space to centralize and store all these different functions in one place. This can be critical for small businesses wanting to automate and alleviate time-consuming tasks. As an assistant accountant, she has used this program to generate quotes, fill orders, invoice payments, and other daily responsibilities.
But, that doesn’t mean you still won’t have questions of your own. Every business is unique, requiring different processes to run at peak levels. To help, the Dallas, TX resident answers five common questions about ERP systems and their use.
What is ERP?
As the name implies, Enterprise Resource Planning software manages a company’s resources. It accomplishes this through a single, integrated platform. Finance, manufacturing, sales, supply chain management, and human resources are all funneled through the same system. By streamlining these core processes, a business can operate more seamlessly and efficiently. In essence, ERP enables all departments to communicate more easily, by enabling a better flow of data. Here, data integrity and access are at a premium.
What are some common features?
ERP acts as an information hub for your business. Although these systems began with simple inventory management programs, ERP has grown to automate cross-departmental functions. Today, modern ERP offers a full suite of operations. While these can be customized to meet specific demands, there are some similarities across industries. In addition to tying together all divisions within a company, ERP also provides project management capabilities and analytics, tracking time, expenses, and customer engagement.
Why use an ERP system?
In short, use an ERP to meet your goals. For growth-mind owners, ERP systems are essential. As Taylor Studniski points out, the primary benefit of ERP is a consistent, systematic flow of information. This is vital to any business, in any industry. Without standardized processes, a company can’t sustain volume going forward.
What are some advantages of an ERP system?
This key benefit yields additional advantages too. When aligned, this consistency and repetition breeds efficiency. The entire database is targeted. But it’s also convenient. Information is easily accessible and shared across departments. Not only does this reduce errors, but this also boosts collaboration. Using these tools, reporting is more effective. This makes any business more agile and able to make quicker decisions.
What are some drawbacks to an ERP system?
Any software isn’t without flaws. ERP is no different. Although Taylor Studniski believes the advantages far outweigh any issues, ERP does present some challenges. The biggest disadvantage is the price. ERP systems are expensive to implement. As if the initial start-up cost for the software license isn’t high enough, ERP integration typically requires more time than initially expected. This is a result of employee training and slow data migration.