Does ERP change accounting for the better? And does your company need an ERP system? These are all questions that require a precise answer. Many successful companies use Enterprise Resource Planning (ERP) systems, so if you run a business, you might want to use one too. But what is an ERP system? What does an ERP system do? Can an ERP system benefit your business? At OMK, the best accounting and auditing firm, we’ve prepared a guide to ERP systems to help you understand this. We can also assist you with various financial and accounting services and expert chartered accountants who provide the best tax advice.
What is an Enterprise Resource Planning (ERP) system?
ERP stands for Enterprise Resource Planning, and it’s simply software that helps businesses manage their back-end operations. This includes everything from finance and accounting to purchasing, supply chain, and inventory, as well as basic human resources tasks like scheduling.
In short, an ERP system is a centralized software that enables all of a company’s core functions to run. ERP systems come in a variety of shapes and sizes, with many products tailored to specific sectors or types of businesses.
The Function of an ERP System
ERP software has multiple uses for businesses, but its core function is to store all of an organization’s important data in one place, ensuring it is secure, organized, and easily accessible. Having an ERP system means you only need one piece of software to track all of your organization’s processes. Nothing gets lost in outdated spreadsheets. ERP provides a complete picture of the what, when, who, why, and how of a company’s daily operations.
How does ERP change accounting for the better?
The benefits of Enterprise Resource Planning (ERP) software can be summarized in two main aspects: it helps you improve your business efficiency and helps you make better business decisions in the future. In a world where productivity depends on the interconnectedness of things, companies have realized the need for an integrated hub for their business information—a solution that eliminates data silos and the constant need to pass fragmented information between departments.
The success of every business sector is interconnected, so it makes sense that its workflows should be interconnected as well. Having a single management system for your business enables employees to share and use data more productively and ensures that all parts of your organizational system are properly synchronized.Transparency is the first step towards improvement, and an ERP system sheds light on every aspect of your operations.
By gaining a clearer overview of your business, you can see precisely where and how you can accomplish things more efficiently. This depth of insight is invaluable when ensuring your operational foundation is ready to build upon. This is where a precise answer to the question, “Does your company need an ERP system?” emerges.
Signs That Your Company Needs an Enterprise Resource Planning (ERP) System
The individual success of every business sector is interconnected, so it makes sense that its workflow should be as well. Having a single management system for your company allows employees to share and use data more productively and ensures that all parts of your organizational system are properly synchronized. At OMK (a financial and accounting services company), we offer a set of signs that indicate your company needs an ERP system:
1 Lack of data needed for decision-making
If data is random, outdated, unverified, stored in different locations, or difficult to access, the quality of your management decisions will be significantly affected, and the frequency of errors will increase, inevitably impacting your company’s profits and other operational aspects. Request the most important financial and accounting services from OMK immediately, and we will also provide you with the best tax advice.
2. You’re using outdated tools
Excel spreadsheets or Google Sheets are simple and convenient, but only in the beginning. As your business grows, its processes become more complex, and continuing to use these tools at this stage will inevitably lead to errors by your employees.
3. You need structure and control
Freedom and flexibility play an important role, but within reasonable limits. In the long run, a structured approach will prevail. Implementing an Enterprise Resource Planning (ERP) system allows employees to work in a uniform and detailed manner, following defined procedures, and providing comprehensive data on various processes. This approach is crucial for managing your business more efficiently and achieving your growth ambitions.
4. Your use of multiple computer programs
For example, your accounting department uses one system, your warehouse staff uses another, your sales and human resources managers use another, and so on. If your company uses multiple separate systems, you won’t be able to operate efficiently and will likely end up with inaccurate or irrelevant data, which hurts your business. Separate, independent business systems add unnecessary complexity.
5. Excessive manual work
Think of all the time you spend on manual work, for example:
- Manually entering various data.
- Verifying data consistency.
- Transferring data to another system, etc.
An Enterprise Resource Planning (ERP) system enables companies to simplify and automate tedious and routine tasks that would take hours or even days when performed manually. This system also frees up valuable employee time that can be allocated to more important tasks.
6. You’re Facing Difficulties Accessing Data
If executives or other employees in your company have difficulty accessing data, this will negatively impact the speed and accuracy of decision-making. Your business’s efficiency will also significantly decline, and you won’t be able to gain a comprehensive view of your entire business. With an ERP system, you gain a key advantage: instant access to the data you need from anywhere, on any internet-connected device.
Does your company need an ERP system?
If you want to grow your business, build a knowledge base, or simply find a way to improve your organization’s workflow, an Enterprise Resource Planning (ERP) system may be the perfect solution. Even if you don’t think you need an ERP system right now, if you have plans to grow your business, it’s much easier to build the necessary infrastructure now than to try to implement an ERP system while your current operations struggle to keep up with demand. ERP systems are highly scalable, so you can start small, and your solution will scale with you.
Conclusion:
If you don’t see any room for improvement in the way your company operates, you probably don’t need an ERP system. However, your competitors are likely using one. To compete, companies must use the right tools. No one claims that using an ERP system will make business management easier, but it will help you organize your business more efficiently. At OMK, we offer the best, most useful services to organize your business and optimize your resources. So, don’t hesitate to request a detailed consultation from our experts.