What is an enterprise resource planning (ERP) system? And why should your business take advantage of it?

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If you are already certain that your business needs an all-in-one enterprise solutions system, you may skip this section.

Today, small and medium-sized businesses (SMEs) confront many of the same challenges as major corporations. Among them is the planning and management of their resources. Small and medium-sized businesses confront comparable problems but have fewer resources to address them.

As with their larger counterparts, small firms must:

  • Maintain accounts to keep track of their sales and purchases.
  • Prepare their tax returns.
  • They must compensate their staff.
  • Maintain delivery schedules that adhere to agreed-upon deadlines.
  • Provide high-quality products and services.
  • Maintain communication with consumers and respond to their inquiries.

Large organizations invest millions of dollars on complex systems such as SAP. SAP and comparable systems are capable of meeting these major organizations’ demand to consolidate their multi-country, multi-company, multi-currency, worldwide businesses into a single platform. This has aided them in achieving data/record consolidation in critical operations such as accounting, taxation, payroll, reporting, and supply chain management, to mention a few.

In comparison to major companies, SMEs were largely excluded from the first wave of the digital revolution (1995-2015). The primary reason they are left out is that they lack the financial resources necessary to license, employ programmers, and adapt such software to meet their specific needs. SAP-based systems have historically been off-limits to the majority of SMEs. These systems require a CAPEX or OPEX budget of at least $100k (yes, one hundred thousand dollars) and above. Even with such companies’ cloud solutions (Software as a Service, SAAS), there is no simple Do It Yourself (DIY) project that customers can feel secure about.

Thus, small firms continue to struggle with the organization until now. They frequently utilize a combination of programs and technologies to handle their day-to-day record keeping, including spreadsheets, accounting software, and web-based CRMs. As a result, they must access several systems in order to comprehend clients’ master data, sales, cash flows, and profitability. The data is stored in many silos. It becomes more difficult to integrate data in order to obtain meaningful insights or alerts. As a result, SMEs become reactive rather than proactive in their daily operations. With such a restricted style of functioning, development opportunities are limited.

ERPNext solves many critical issues that SMEs have while managing their resources:

  • Affordability: It is a Free and Open Source Software that may be downloaded and installed without charge.
  • Completeness: All required modules are present. View the whole list.
  • Customization: Adding fields and features is simple.
  • Efficiency: Relatively few computing resources are required (cheaper to host and manage).
  • Wholesomeness: A single system and database that enables concurrent recording of transactions and data extraction by numerous users.

What exactly is ERPNext?

ERPNext is a comprehensive company management solution that enables SMEs to centralize all of their business activities. ERPNext enables SMEs to make educated, fact-based, and fast choices in order to stay ahead of the competition. It acts as the backbone of a business, providing it with strength, transparency, and control as it grows.

ERPNext will assist you in the following ways:

  • Maintain a record of all invoices and payments.
  • Determine the number of a certain product that is in stock.
  • Determine and monitor your critical performance indicators (KPIs).
  • Determine the status of open client inquiries.
  • Payroll administration for employees.
  • Assign tasks and monitor their completion.
  • Keep track of all your customers, suppliers, and contacts in a database.
  • Quotes should be prepared.
  • Maintain a record of your budgets and expenditures.
  • Calculate the effective selling price based on the real costs of raw materials, machinery, and labor.
  • Receive notifications about scheduled maintenance.
  • Create and publish your website.
  • And a whole deal more.

Is ERPNext just for SMBs?

ERPNext adapts effectively from small to medium-sized businesses to even huge organizations. We have helped many small to medium businesses in Maine and the United States to replace their proprietary systems and implement an open source ERP.

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