Posted by D&V Philippines
Sep 16, 2019
Share
Finding the right enterprise resource planning (ERP) system that’s a perfect fit for your organization can be daunting and time-consuming. However, the long-term impact of choosing the right ERP for your business can be significant, as it will help you in making smarter, better business decisions.
Related: 4 Benefits of Having a Fully Integrated Business System
What is an ERP System in Accounting?
Many people use ERP and accounting software interchangeably, but there is actually a distinction between the two.
An accounting software refers to your technology that allows you to perform finance-related processes such as accounts payable and receivable, payroll, trial balances, and the like. This can also offer add-on programs for billing, purchase orders, sales orders, general ledger, timesheets, expense, and payment processing.
On the other hand, an ERP system can have more features on top of these finance and accounting functions. Aside from tracking your business financials, an ERP system allows you to monitor other key performance indicators in human resources, customer relations, and other business-impacting aspects of your operations.
Choosing the Right ERP for Your Business
Whether your decision to find an ERP stems from a need for a better system for your operations or your finance and accounting, it’s crucial to have every information that you need before you make a purchase.
Here are some things to consider when deciding what ERP software for small business suits your company.
1. Business Goal
Before you look for prospective vendors for your ERP, make sure that you have documented your business processes and defined the pain points that your new system seeks to address.
Consider how you want your processes to look like in the future. Knowing this will help you decide when you shop around for a potential partner. Will your chosen ERP system provide the functionality that your business requires?
2. Technical Requirement
Your ERP system should fit well in your overall IT infrastructure. Adopting an ERP system that fits or complements existing systems perfectly can help you save on costs in the long run, as it will reduce errors and rework.
3. Industry Fit
Make sure to do your research on what industry-specific ERP systems are available for you. Often, it’s a good idea to go for ERP systems that are widely used in your industry, as it increases the chance that it can be integrated with the systems you are currently using. This reduces the risk for data-transfer errors when your systems cannot seamlessly communicate with each other.
4. Proper Implementation
Before you decide on what ERP to get, have a comprehensive implementation plan that will include not just the activities related to purchasing and installing the software, but also the ones that involve the end-users.
How will they be trained to use the system? What changes will be made in your business process workflows and how does the new system fit in your processes? Understand these requirements to make the ERP implementation a success.
Finding the right ERP solution for your business operations will have a transformative effect on your organization. As you upgrade your back-office operations, you’ll find that your employees can start focusing on high-value tasks that will grow your business.
Get Reliable Support for Your CFO
Need help in taking the first step towards automation? D&V Philippines can support your CFO as you make the shift to a better finance and accounting framework.
We have experts onboard who can help you with process automation and migration, as well as other activities ranging from big data analytics to organizational benchmarking.
Read our whitepaper Premier CFO Solutions to find out how we can support you today.
