In today's dynamic business environment, small businesses must decide which technology will support their growth, help them remain organized and productive. The business technology that you choose should help your business grow and make your life easier.

Enterprise resource planning (ERP), a software that manages business processes, was once reserved for large corporations. Best ERP System for small business is a great way to gain many benefits. But, they require hefty budgets and a lot of resources. ERP technology has advanced rapidly over the past few years and no longer requires massive investments.

ERP systems have become a valuable and necessary tool for many small businesses. It's important that you understand the benefits of using ERP systems, and what they can do for your business.

What is ERP Software?

ERP software is designed to automate and integrate core business processes. ERP software can manage all aspects of your business, from accounting to sales and inventory to supply chain. A central database combines all your data from different departments to create a single system for reporting and communication. Automation streamlines processes, improves workflows and increases collaboration within your organization.

The majority of small businesses do not start with a single integrated system. They often launch their businesses with a combination entry-level accounting software (like QuickBooks) along with an application that manages email, spreadsheets and presentations. (like Office 365). You may also use separate software for managing customers, payroll, or inventory depending on your industry. These convenient solutions provide a quick way to get started and the tools needed to grow your small business without having to make a large investment.

This approach has the disadvantage that it requires you to work with different technologies, which are not related, in order to access data, generate financial reports, evaluate performance and make decisions. This manual process is time-consuming and adds stress to employees at a crucial moment when your business may be saved or destroyed. This causes growing pains for your small business over time. ERP software can help you avoid these growing pains. They affect everything from order errors to closing out the month.

Use an ERP system for small business to reap the benefits

It may be intimidating to invest in an ERP system without having built a business. However, this technology is a great fit for small businesses. Many modern ERP systems allow you to scale them up or down depending on what functionality you require. You only pay for the functionality you require at that time, and then add more as your business grows.

Use an ERP system for your small business to reap the benefits:

1. Reduced operating costs
   To get started, traditional on-premises ERP requires a large upfront investment and extensive infrastructure. Small businesses can choose from a variety of affordable, cloud-based ERP systems that do not require additional hardware, IT personnel, maintenance and upgrades.

2. Streamlined Information Flow
   ERP technology automates routine processes and workflows in order to reduce errors and increase efficiency. This improves data accuracy and visibility for your small business.

3. Access to Data and Quality
   Small businesses that are growing quickly don't have the time to wait for reports, or second-guess their performance figures. ERP software gives you total access to all critical processes and data within your business. This allows for faster communication, reporting and performance analysis.

4. Increased Employee Productivity
   It's important to keep your employees happy, whether you have two or ten. Don't burn them out with tedious tasks such as data consolidation or using technology that's not right for them. Give them an easy-to-use ERP system with all the tools they need to do their job efficiently.

5. Accurate reporting and analytics
   With a single source, your small business will be able to take advantage of all your data. Spreadsheets that are uncontrolled can also be thrown out the window. Business intelligence features and capabilities are included in many ERP systems to help generate reports and analytics that can be used for financial forecasting and other purposes. This also affects your ability to meet compliance requirements consistently.

6. Fast sharing and collaboration
   The ability to access your data instantly in one central location will increase collaboration within your organization, and streamline the completion of tasks.

7. Making informed and timely decisions
   The ability to see the big picture at any given moment is one of the biggest advantages of ERP systems. You can take quick and confident decisions based on solid data when you have a clear picture of the whole picture.

8. Scalability for Your Business
   ERP systems are modular, meaning that each application can either be used together or separately. This allows small businesses to choose the functionality that works best at the moment, but also leaves the option of expanding easily and seamlessly when the time comes.

9. Happier Customers
   When your business is running smoothly and efficiently, customers will know that you are taking care of them. ERP software helps you focus on your customers and their experience by providing better tracking, more streamlined processes, less errors and greater customer insight.

Read: 7 Ways Small Businesses Benefit from ERP