Last updated on December 22nd, 2023
Do you feel like you’re losing time trying to track down data and spreadsheets to make important decisions? Are you overwhelmed by the number of programs or systems you have that don’t “talk” to each other? Have you lost business, profits, or productivity due to data issues? Do compliance and regulatory issues keep you awake at night? Maybe it’s time for you to consider adopting an Enterprise Resource Planning or ERP System.
Who can adopt an ERP?
While a commonly held belief is that ERPs are only for large public companies that’s simply not true. The cloud and technology advancements have made it more affordable and accessible to businesses of all sizes. Today, ERP systems are available for small, medium, and large businesses.
What is it?
ERP stands for Enterprise Resource Planning. It’s a business software solution that can help you manage your data, resources, and operations. Rather than having different systems for distinct functions, an ERP integrates and automates a variety of processes and functions, which can include accounting, customer relationship management, e-commerce, finance, Human Resources, inventory management, manufacturing, marketing, procurement, productivity tracking, sales, supply chain, time systems, scheduling, and more.
An ERP can be modular and scalable, making it easy to add new features and capabilities as your business grows and/or needs change. Some are even customized by industry. While available on-premises (which requires heavy IT infrastructure and staffing investments), the cloud has made it possible to offer ERP capabilities on a subscription basis, prompting businesses big and small to adopt one as part of a larger digital strategy.
When should you consider moving to an ERP?
If you’re losing time, customers, productivity, profits and/or opportunities because of your current systems (or lack thereof)…if you can’t use data to make informed decisions in a timely manner…if you don’t have a big picture view of all aspects of your operation at any given moment…if you’re operating inefficiently…or if your business is having a growth spurt with no end in sight, it may be time to consider adopting an ERP.
Where can it deliver improvements and value?
It can help your business be more competitive by identifying and changing processes to operate more efficiently and effectively; use data to schedule production and projects more effectively; more accurately estimate and track product costs; make better, faster decisions; improve customer service; automate mundane tasks so staff can focus on value-added activities; operate more efficiently and reduce lead times while maximizing production and profitability; and use data for predictive modeling (what would happen if…) and real-time decision-making.
It can also improve your internal controls for accounting and financial reporting and compliance; set the stage for growth, whether that’s with a new business model or a new line of business; and support remote and distributed workers.
It may be considered by lenders, investors, potential business partners or a business sale as governance and business practices come under scrutiny.
Why move to an ERP?
It can offer numerous benefits. An ERP can help you improve data security, reduce operational and administration costs, make data-driven decisions, and serve as a framework that can support future growth. It also requires you to define controls that can help protect your business from fraud and other criminal activities, while boosting regulatory compliance.
How do I get started?
Start by doing some research of your own to learn about ERP systems tailored for manufacturing businesses like yours, what they offer, and pricing (many offer monthly subscription options). You may want to reach out to colleagues in trade associations to learn about their experiences with an ERP. It’s also a good idea to define your budget up front and even conduct a cost-benefit analysis to make sure it’s the right time and move for your business. Plan accordingly – it can take an average of three to nine months to implement a new system, train staff, and monitor outcomes. Finally, don’t underestimate the amount of work involved. An ERP implementation requires dedicated resources and hard work. When done right, the pay off can be quick and bountiful.
You may also consider reaching out to your RBT CPAs contact to learn how we’ve helped other clients choose and implement ERP systems. Also remember, to free you up to focus on projects like ERP implementations, RBT CPAs is here to help with your accounting, tax, audit, or business advisory needs. Interested in learning more? Give us a call today.
RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.