ERP Software; A Basic Need Of Small Businesses


Management solutions are the basic need of every business across the globe. Among those management solutions enterprise resource planning (ERP) software is one of the most used software. It is a myth or a misconception that makes us believe that ERP software is only to be used by large-sized businesses.


The ERP software is designed to help businesses of all sizes and natures to increase their operational efficiency with the software. ERP software for small businesses is integrated with all necessary modules that help them manage their business without increasing complications in operations. 


Another misconception about ERP software for small businesses is the cost of their integration. It is assumed that ERP software for small businesses is costly and causes an increase in the operational cost of the business. 


In this article, we will discuss the idea of ERP software for small businesses and how it helps small-size businesses to be part of the competitive markets across the globe and grow to be like them. 


What Did ERP For Small Business Brings To Small Businesses?


Before getting into the features, importance, and benefits of ERP for small businesses it is important to discuss what exactly ERP software brings to small businesses and how it helps them in the group. 


Every module and integration that is integrated into the ERP software is developed to incorporate basic needs of business management like accounting, HR & payroll management, inventory management, sales management, purchase management, customer relationship management, and project management. All of these tasks are basic operations a basic ERP software performs. 


With all of these modules working for a small business brings the following changes to the business. 


  • Increase Connectivity
  • Enhances Operational Efficiency 
  • Digitize Business Operations

Increase Connectivity:


With ERP software for small businesses, the first thing that happens to these businesses using ERP software is connectivity. ERP software runs over a centralized firmware that connects all the departments and sections of the business to a centralized platform that unifies the data and all the commands to one centre. 


With a centralized system, small businesses can connect all the data input sources of their business to one source so that a manager can go through all the operations from a single window. All the operations aligned, vouchers generated, quotations requested, deliveries made, and transactions received can be seen from a single platform at ease. 


The data centre of the ERP software for small businesses cannot be accessed by all employees. It can only be accessed by authorized people with authentication credentials. The ERP for small businesses allows only relevant people to see the relevant section of their needs which secure the data and reduce waste of time. 


Enhances Operational Efficiency:


The basic idea of having ERP software is to attain operational efficiency for the business. This is only possible with drastic changes in the operational system of the business. ERP software for small businesses upgrades the business operating system with its advanced integrations and helps businesses in attaining higher productivity. 


With lesser wastage of resources and enhanced utilization of input resources, businesses become more productive with fastened processing and executions. 


Digitize Business Operations:


Third and the most important thing that an ERP for small businesses brings to the businesses is digitalization. In this modern and digital era businesses are moving toward modern means and to grow with the world, businesses have to adopt the digitalization of business operations. 


Manual business operations are not compatible with the speed of business evolution. ERP software is the first step that makes small businesses start their journey towards a complete digitalization of business operations.


ERP for small businesses shifts manual business operations to the digital platform of ERP software. ERP software manages all the operations that include sales operations, maintaining accounting records, creating a general ledger, and generating reports in real-time through its digital platform. 


Features Of ERP Software For Small Businesses:


The feature of ERP software for small businesses is how it helps businesses in managing their operations. Business managers that use manual business operations get frustrated with piles of paper files and receipts to maintain records of each business transaction. On the other hand, business managers that use ERP software do not waste their time keeping files and finding them when needed. They just search on their system and the ERP software keeps and finds every single transaction and record. 


When talking about ERP for small businesses’ features, they can be identified as the upgrade they bring to the business operations. Following are some features of ERP software for small businesses.  


  • Error Free Accounting
  • Better Cash Flow Management
  • Effective Sales Team Management
  • Reduce Inventory Cost
  • Increased Efficiency


Error Free Accounting:


ERP software for small businesses reduces the chances of errors in keeping the books. In the manual business procedures, all the data is entered in either spreadsheet or paper files. With manual data entry, the chances of human errors and alteration in the data are quite easy. 


ERP software migrates firsthand primary data to the system and that data cannot be altered until authorized by the management. The automated data processing and creation of accounting records create an error-free accounting system for businesses using ERP software. 


Other than that, ERP software for small businesses generates accounting reports. Managers can download the accounting reports through the reporting module and use these reports for better decision-making. 

Better Cash Flow Management:


Small businesses mostly deal in cash. And with the excess amount of cash, they must have an effective cash flow management system. Dealing with cash increases the risk of disparities with accounts and cash in hand. 


For better cash flow management small businesses need an executive system that can manage the cash. ERP software for small businesses is integrated with a state-of-the-art cash management system that helps businesses in maintaining a transparent and strong cash management system. 


ERP software generates vouchers for every cash transaction that keeps in check how much cash is dispersed and how much is received by the businesses. 


Effective Sales Team Management:


The sales team is one of the most crucial teams any business has. They are responsible for the sales that create all the revenues. Whether it’s about manufacturing business or services, the sales team manages all the sales operations for the business. 


Small businesses have a dynamic sales team that operates from remote locations. Without ERP software the sales operations are performed manually with every single order submitted to the distribution department manually and in case any of them gets lost the order cannot be executed on time. With a digital solution like ERP for small businesses, sales team management becomes easy and more effective. The ERP software keeps a record of every order, and activity of every sales representative and generates alerts for the distribution department for supply. 


The sales team gets connected through the ERP software and runs sales operations effectively.


Reduce Inventory Cost:


For a small business, cost-cutting is among the top priorities along with increasing the profitability of the business. The ERP software for small businesses increases the efficiency of inventory management and business operations. When the efficiency increases the cost decreases because of a decrease in wastages and leakages. 


Small businesses easily reduce their inventory cost along with other operating costs because of fewer resources required to run the process. For example, automated business management does not require hefty paper piles and filing systems to maintain the record as all the records are stored in the ERP software’s memory. 


With efficient operation management, the operating cost reduces with ERP software. 


Increased Efficiency:


The ERP software increases the efficiency of small businesses with its multi-dimensional business management modules. The modules digitalize the business operations and reduce leakages, wastages, and lags from business management operations. The efficiency of small businesses increases with the development of dynamic business management operations by ERP software. 


The dynamic business management operations help in maintaining business records, fast execution of business operations, and enhancement of customer relationship management. 


Importance Of ERP Software For Small Business Management:


We have discussed various features, and inputs of ERP software for small businesses. It is important to discuss why they are important for small businesses to have. As mentioned earlier, the business dynamics are changing rapidly across the globe. Countries are opening their borders for international trade and welcoming international businesses to their lands. With the world being a global village the competitive advantage of one company over another is minimized every day as every business now has access to all types of resources globally. 


Small businesses that are usually startups suffer in this competitive world trade as they lack technological advantage and economies of scale. These small businesses are business leaders of tomorrow, but they must have the right resources to compete with other businesses across the globe. ERP software is a must resource they must have to bring efficiency in their management and develop systematic operations for them. 


With foundations leading in the right place, small businesses lead to success and are the leading companies of tomorrow. ERP software providers are developing dynamic business management solutions for small businesses to improve their organizational management. With more advancements in the way, this software will be transformed into advanced analytical tools for business management. 



Small businesses must integrate their business with ERP software to bring more efficiency to their operations. ERP software for small businesses increases the profitability of the business with better sales and other management operations. 


If you are a small business owner and want to grow your business to new heights, integrate your business with ERP software like CISERP. CISERP is a dynamic ERP software available with multiple implementation plans.