ERP Accounting Software

ERP, or enterprise resource planning software, was initially developed to optimize planning and production for Fortune 500 companies.  Today, however, this type of software is applicable to much smaller, and medium-sized firms, for several reasons:

• Cost is no longer limited to multimillion-dollar investments.
• Applications have been simplified and made easier to install and use, so that they are no longer overwhelming for smaller enterprises.
• The current competitive environment is relatively unforgiving, so companies are forced to either maximum efficiency or insolvency.
• The largest retail and manufacturing enterprises are forcing suppliers to adopt some form of ERP or be dropped as suppliers.

ERP is really about two main issues: integration and forecasting.  Together, these two capabilities provide a supply chain that does three things:

• It provides the right mix of products to consumers – when they are needed, i.e. on time.
• It helps ensure that products and inventory aren’t overproduced and overstocked.
• It minimizes total costs for what is produced.

Why is this important to medium-sized and even small businesses?  Some aspects of ERP are now incorporated into many low-cost packages.  Their capabilities, even though not full-blown ERP, can still make significant improvements in operations.  And using these capabilities early creates expertise within the organization.  That in turn makes future implementation of more robust ERP easier, faster and cheaper.

There are three questions that anyone considering new accounting software should ask:

• Does ERP potentially affect my company NOW?
• How soon (at what level of revenue) does ERP become a significant factor?
• What incremental cost – if any – would be entailed in providing ERP capabilities – even if I don’t need them now?

If you are considering new accounting software that integrates ERP functions with standard accounting modules, you need to see our CTS accounting software reviews and ratings, where ERP integration issues are addressed and rated by vendor.

For more than 20 years, CTS has been helping companies make smart technology decisions that minimize your possibilities of implementation failure tremendously. Now, in conjunction with our software screening and referral service, you can access detailed accounting software evaluations, comparison charts, and other tools for FREE when you download our Accounting Software Selection Kit.