Maintaining a small business is hard enough, but when you factor in all of the moving parts of your daily operations, it can easily feel overwhelming. This is where ERP systems for small businesses come into play.
With one, fully integrated system, all of your business data, including accounting, planning, reporting, distribution, sales forecasting, customer service, and more, are accessible in an easy-to-use solution.
Now, you may be wondering, “Is my business too small for an ERP?” So, we are here to explain the facts and benefits of ERP systems for small businesses. First, let’s provide you with some background information about how these systems impact small to medium-sized businesses.
The Challenges of Running a Small Business
In the United States, there is an incredible amount of small businesses. According to the U.S. Small Business Administration, we have 33.2 million small businesses across the country. Unfortunately, the number one reason that small businesses fail is a lack of funding. Without the proper resources and financial insight, many small businesses struggle to make it past the 5-year mark.
That’s why it is crucial to have a system in place that automates your processes, so you spend less time on repetitive tasks and more time dealing with the important matters of your company. No matter the size of your business, an ERP system is going to help you better manage your data and ultimately improve your bottom line.
Dealing with loads of mundane data can be meticulous, time-consuming, and cost-inefficient. Even if you think you don’t have enough information for an ERP to organize, it will still provide valuable insight into your business that will help you make informed decisions.
In fact, 78% of businesses use some sort of ERP system to manage their operations. Having this system in place is a part of running your business efficiently for small, medium, and large-scale businesses alike.
Why ERP Systems for Small Businesses are Beneficial
Now that we understand the main challenge that businesses face when starting up, we can delve deeper into the reasons why ERP systems for small businesses are beneficial. Let’s get started.
As we mentioned earlier, the main reason that small businesses fail is because of a lack of funding or poor financial management. Large-scale businesses usually don’t have this problem because they have a fixed source of capital from years of running successfully, and many have in-house accounting departments that are constantly overseeing company finances.
On the other hand, small and medium-sized businesses may not have the expertise to successfully take care of all the incurring costs that come with running a business, especially if they are not seeing the revenue streams they were expecting.
With the revenue and expense management modules that accompany an ERP system, small businesses can effectively control their finances without the headache.
Improved Accounting Compliance
In addition to the benefits of having a financial management component with an ERP, these systems also help businesses stay in compliance with changing accounting regulations that often present complex challenges.
With automatic updates, streamlined data collection, and internal access, ERP systems for small businesses can provide the assistance these companies need in order to keep up with the ever-changing industry standards.
Greater Workforce Collaboration
Collaboration is often a key aspect of small businesses because team members get a more hands-on approach to their projects. However, many companies now offer hybrid or even fully remote opportunities for their employees since the pandemic. In fact, 74% of U.S. companies are currently using or planning to implement a hybrid work model into their business.
While hybrid and remote opportunities can be beneficial to employees, they may also create barriers to collaboration. Cloud-based ERP systems for small businesses allow for increased collaboration amongst employees because all members have real-time access to accurate information.
Also, ERPs avoid the hassle of having to wait and verify information from separate systems. This way, everyone is able to collaborate and proactively work on projects. The integrated system facilitates easy communication between employees and streamlines the completion of tasks.
It can be difficult to effectively manage your business when your data is sprawled across different platforms and spreadsheets. Finding specific pieces of information becomes a nightmare, and you may not be able to access critical data when you need to.
Cloud-based ERPs provide complete visibility for your operations, so you can see how your company is performing across all departments. They also allow managers and small business owners to analyze the performances of different business processes and determine which are not running as efficiently.
ERP systems for small businesses help maintain oversight of the company, determine what team members have access to certain information, and effectively manage inventory, sales, revenue, and costs.
In addition to more effective management, companies can also experience enhanced productivity with the help of an ERP system. Employees won’t waste time on mundane tasks because the system organizes all the data and creates automations for repetitive tasks. That way they can focus more on the work that actually matters.
ERPs also reduce the errors caused by manual input and instantly improves operational visibility, collaboration, and informational accuracy. With all of these accessible from a single dashboard, the productivity of your small business is likely to skyrocket.
Increased Scalability and Adaptability
As a small business, you may be anticipating the future growth of your company, and you should have a solution that grows with you. Legacy and on-premise ERP solutions are static and can’t provide the scalability that your company may need. So, you need an ERP solution that fits your company while also allowing your business to grow.
With a cloud-based ERP system that can adapt to your changing needs, you have the flexibility to pick and choose the functionalities that work best for your business at any given time. It can easily accommodate increased or decreased resource use depending on whether you want to scale your business up or down.
Since data security is of the utmost importance, it is crucial to ensure that your business information is handled properly. With the advanced technology that accompanies a cloud-based ERP, you can rest easy knowing your data is secure and the risk of theft or leakage is greatly reduced.
In addition, automatic backups and disaster recovery are features of most cloud ERPs that help mitigate data loss and security risks for your business. Plus, owners and managers control who has access to what information, so data never ends up in the wrong hands.
Experience the Ease of ERP Systems For Small Businesses
With all of the time and effort you put into your business, you should be investing in systems that improve your efficiency, not give you more work. For small, medium, and large-scale businesses alike, having an ERP solution that enhances every aspect of your organization is extremely beneficial for your overall performance.
With a cloud ERP solution from Khameleon, you will reduce your company’s costs while increasing your productivity. It’s a win-win!
So, get your FREE personalized demo today to start improving your business. Contact us to see how we can transform your business.