7 Ways Small Businesses Benefit from ERP
Paapri Cloud Technologies | NetSuite | UK Blog
There are many reasons why some decision-makers are reluctant to progress into Cloud ERP. Hesitations regarding broken integrations, pre-existing customisations being overwritten, and a lack of available resource holds companies back. The workforce’s shift towards the work-from-home culture has increased the pressure on decision-makers to ignore their reluctance. In light of Covid-19, companies were left scrambling to find ways to support their remote employees. On-premise software’s lagging progression compounded operational struggles. Cloud ERP's ability to grant remote access to the functionality and data employees required, showcased its importance to the business world.
Paapri Cloud Technologies and NetSuite's continued work throughout the pandemic has helped small businesses adapt to the challenges of recent times. With numerous successful implementations of NetSuite's Cloud ERP in the manufacturing, retail, and distribution verticals, we're sharing our knowledge on the 7 key ways ERP helps small businesses.
1. Enables remote workforce management and collaboration
The shift towards homeworking made businesses with basic accounting software realise that their current process wasn’t up to the new demands of the working world, and quickly.
With NetSuite’s cloud ERP, the same businesses can review the data, make adjustments, and close books remotely. Its checklist functionality simplifying the process for users and ensuring a smooth process.
2. Complies with accounting standards and regulatory requirements
Rules and regulations cause issues for all companies, regardless of industry. Changes to the revenue recognition rulings have placed greater responsibility on companies to recognise revenue in a consistent manner. Something which older on-premise systems weren’t set up to handle.
The adaptability of NetSuite’s Cloud ERP solution and its automatic updates enables organisations to match the regulatory landscape. Change is inevitable, equip your business with the software it needs to match the global economy’s unpredictability.
3. Gives all organisational departments a unified and accurate picture of the business
During a business’ initial growth, they often purchase software as a specific need arises. This creates silos of data and information across the company’s functions. With disparate systems, costly integrations are needed to access critical information easily. Add this to the internal battles over whose data set is more accurate and the decision-making process is significantly impeded. Cloud ERP solutions provide accurate, real-time data that helps teams collaborate more effectively. Using real-time inventory data, sales and marketing can develop promotions for products that are actually in stock, leading to increased revenue and happier customers.
4. Drives quick reaction times
Companies using disparate systems are dependent on IT support to gather and produce reports. Time delays in data collection leave the information outdated by the time it reaches decision-makers. NetSuite offers role-based dashboards, granting employees immediate access to real-time data. Decisions are quicker, easier, and more accurate.
5. Reduces operational risk
Cloud ERP embeds approval workflows into procurement, accounts payable, and other financial processes. This is combined with access control features based on user roles to ensure that data remains accurate and in the right hands.
6. Tracks unit economics, customer and project profitability
Through a process of regularly evaluating the direct revenues and costs on a per-unit basis, unit economics help companies understand the profitability potential of product lines and adjust accordingly. Without integrated systems, manufacturers struggle to accurately answer these questions and determine how many resources are being allocated to product X versus product Y—visibility gaps that can impact margins.
Using cloud ERP, companies have the visibility they need to know which products are posting positive versus negative margins and make projections around business development and profitability.
7. Helps companies scale and adapt
Companies that initially rely on spreadsheets or basic accounting systems generally outgrow those solutions as they scale and add complexity. When these organisations open additional locations, add subsidiaries and/or start handling multiple currencies, the need for a more robust, enterprise system increases exponentially
While smaller firms may be able to run on basic systems and spreadsheets, those that adopt cloud ERP not only improve their existing business management processes, they’re also well positioned to scale up in the future.
Get in touch with the Paapri team to find out more about our NetSuite ERP implementations.