5 Indicators that may lead a company to look at an Enterprise Resource Management System (ERP)

  1. Data File Too Large/Large Number of Concurrent Users

Once the data file of a server-based small business accounting system becomes too large, the operation of the system can slow down considerably or even start crashing. This leads to user frustration as it takes them longer to complete routine tasks and significantly lowers productivity, particularly if the system needs to reboot.

Similarly, once more and more users start accessing a small business accounting package its performance will start to slow leading to user frustration and lower productivity. ERP systems are underpinned by a scalable database (usually SQL) and do not suffer from these limitations.

 

  1. Large Inventory List/More Complex Inventory Handling Requirements

Once a company’s inventory list has reached a certain size it will affect the running speed of small business accounting packages. In addition, companies tend to require more complex inventory handling procedures as their inventory list grows.

ERP Systems are able to perform processes such as barcoding, serial number tracking, batch processing, automatic re-ordering; and cater for inventory sub-items, multiple pricing levels, multiple bins and multiple warehouses; features that are not available (or only available in a limited capacity) in small business  accounting packages.

 

  1. Disparate Systems/No Single Source of Truth

As companies grow they will tend to add additional software packages (such as CRM systems, Warehouse Management Systems etc) to their business to perform specific tasks. This can lead to what’s known as the “hairball” effect where there are several disparate systems requiring data to be double-entered (into one system and then also into the accounting system) and there being no acknowledged source of data truth.

ERP systems will combine many of the functions performed by disparate systems into an integrated whole-of-business system, eliminating the need to double enter data. The database underpinning the ERP system will also act as the single source of truth.

 

  1. Reporting Done on Spreadsheets

One of the unpleasant side effects having disparate software systems is that it means that customers are quite often forced

to resort to collating data on spreadsheets to report on various aspects of their business. Not only is this process time consuming but it is also prone to human error.

ERP systems have a comprehensive list of pre-built reports and also come with report writers which give customers the ability to produce custom reports so that they can report on any aspect of their business.

 

  1. Multiple Offices, Offsite Access

Small business accounting systems have been developed to cater for small businesses – which are usually single office entities. Once a business grows to take on multiple sites, collating data from these sites can be problematic for such systems.

ERP systems have been designed to cater for multiple offices and can consolidate the data from each of these offices for reporting purposes. Plus, important data can be accessed by relevant employees who are working offsite – all they need is internet access.

AlphaBiz Solutions has a range of enterprise grade solutions that cater for growing businesses. MYOB EXO Business is an on on-premise ERP solutions andMYOB Advanced Business is a cloud based ERP solution whilst MYOB PayGlobal can cater for the payroll and HR needs of larger businesses.

For further information on any of these solutions please call us on 08 9277 2226.

Posted on by Patryk Lazarz

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