Enterprise Resource Planning FAQs
What are enterprise resource planning (ERP) systems?Enterprise resource planning systems integrate information throughout an organization. ERP systems typically integrate finance and accounting, manufacturing, supply chain management, sales, and human resources departments to allow information to easily flow throughout an organization leading to more efficient business operations.
What are the benefits of ERP software?Each company looking for an ERP software has their own goals they would like to accomplish with the system. However, many companies strive to have a system that will allow them to:
- Increase efficiency
- Increase information flow
- Supply decision makers with critical information
- Reduce errors
- Reduce redundancy and re-keying
- Create a more agile business
What are the benefits of cloud-based ERP software?There are many benefits to using cloud-based ERP software. The main benefits include:
- No need for servers
- No maintenance
- No upgrades
- No IT department
- Standardized system
- No time required for implementation
What should I look for when choosing an ERP system?Selecting ERP software is a critical decision and it is important to do a thorough evaluation of the company. It is important to determine the best fit. ERP software is not one-size-fits-all. These are important factors to examine:
Choose an ERP system that is designed with your industry and business size in mind. It doesn’t make much sense for a large, multinational retailer to choose an ERP system designed for small to medium sized manufacturing companies.
The ERP system needs to be able to grow with your business and evolve with the changing business environment. If the system cannot be easily upgraded in the next five years, it will become obsolete.
Implementation and adoption of ERP software takes time and provider support. It is important to understand the level of support that will be provided by the vendor. It is also quite common to pay for support. How much will it cost and how much do you need? Furthermore, is the provider capable of providing the necessary level of support? These are important questions to ask when searching for ERP software.
Cloud vs. On-premise
When selecting ERP software, you must examine whether the company requires on-premise ERP due to compliance or other factors. If it isn’t required, does the company have the resources to support on-premise ERP? If not, it might make sense to evaluate other ERP options. These questions are essential to the long-term success of your ERP system.
What are the types of business accounting software available?There are three main types of accounting software available to businesses: tax accounting, bookkeeping/fund management accounting, and business support software.
Tax accounting software is used to determine and report the correct amount of taxes due, and the appropriate authority, based on the business transactions.
Bookkeeping/fund management software is used primarily for bookkeepers who have the permission of the company to use its funds to maintain a record of the financial transactions to justify the use of funds. Also, it is used to record a history of business transaction done with clients to prevent possible disputes in the future. Most of the time, double-entry is avoided and is done in a single-entry format.
Business support software is used in the case where the executive of the company does not handle all business operations on their own and have designated departments to split these duties to, in order for the individuals to be productive, sharing of information is needed. Also, entry of the duty completed is not done afterwards, but rather done directly through the accounting software.
The other factor to evaluate is how the program should be delivered. Is it preferred to have the program installed on the network or can it be cloud accounting software? Some companies must have the program on the network for compliance and security. However, small companies especially may benefit from cloud accounting software.
How do I choose business accounting software?The type of software chosen depends on the requirements of the business, whether it is expandable, and your budget. It is extremely important to do a full business evaluation and current industry requirements. Furthermore, it is important that the software used can be easily upgraded to meet new regulations and grow with your company. If the program cannot grow, then it is not worth the investment. Fortunately, there are a lot of options available in a variety of price ranges.
What are the types of business accounting software available?The benefit of using cloud-based software is the ability to use it at anytime, anywhere without the need to maintain the servers and software. It is easily accessible by all employees with real-time information. The system can be upgraded frequently to keep up with the changing business environment.