ERP System Basics

Among the things our clients cite as their top business challenges, trying to come to grips with the choice of Enterprise Resource Planning (ERP) systems and vendors remains the most vexing.  That’s because every organization has unique needs and requirements, so ERP will never be a “one size fits all” solution.  At Accountnet, we conduct a full Needs Assessment and assist with the ERP software selection process to determine which solution will work best for your business.

ERP system basics | Accountnet | New York, NYHaving a basic understanding of what ERP software is, where and how it originated, and what the benefits and drawbacks are is always a good place to start.  Here are a few quick points to know:

  • While ERP has its roots in the manufacturing industry, over the decades ERP systems have evolved and expanded to include all core business functions for almost every industry sector. ERP software come in all shapes and sizes and is usually available as a client server application, a hosted service, or even as a cloud-based web portal.
  • ERP applications are generally modular in nature (for example, supply chain management, sales order processing, accounting and human resources) with modules sharing vital business information in a central database repository. ERP systems typically carry out financial and business planning functions that might formerly have been handled by many smaller, standalone applications.
  • A major benefit of having a modular ERP system is that it can integrate multiple processes and parts of the business, making the business run more efficiently. By automating various functions, you eliminate overlap and duplication of effort, and also benefit from improved system processing (for example, better order tracking from acceptance through fulfilment).
  • By centralizing data, the usual problem of keeping information in synch between multiple systems is reduced, allowing managers to get a more accurate view of vital business statistics.  Having a single data repository can also lower the risk of losing or exposing sensitive data, assuming you take appropriate data security measures.

Along with the many benefits and advantages, you should understand the potential problems you may encounter BEFORE moving ahead with purchasing an ERP system.  ERP systems can prove to be complex and difficult to customize – make sure you have the support and guidance of a trusted ERP vendor.  Accountnet is a Gold Certified Partner for Microsoft Enterprise Resource Planning. Contact us to learn more about how we can get your business started with ERP.