ERP for small businesses: Many small business managers are used to managing independently and keeping track of activities through spreadsheets. However, this method does not always allow efficient management.

In these cases, investing in an ERP for small businesses can be the ideal solution. Today, a large part of the market is already adept at technologies like this, and being out of the loop can mean losing a competitive advantage amid the competition. Still, companies that use this technology obtain several benefits for their business.

Therefore, this article will discuss the main differentials of an ERP for small business management and in which aspects this innovation can help your enterprise develop more. Want to know everything about ERP in a complete guide? Read here!

How Important Is A System For Small Businesses?

Using an ERP in your small business can significantly facilitate your business routine and control of the company’s processes. With an integrated management system, you no longer have to worry about complex spreadsheets or manual control, making your management much more complicated than easy.

And the critical point is that with an ERP, data reliability is guaranteed, which can avoid any risk of failure or leakage of incorrect information and data by manual input.

Compared to management spreadsheets, which are common in small companies, ERP allows greater internal security of this information. Spreadsheet data can be easily lost due to improper manipulation, frequent changes, or simultaneous use by many people, leading to many errors.

Considering that more than 60% of small businesses close in just five years due to a lack of good management, it is essential to keep in mind that you maintain efficient control of your entire operation and processes, something critical to the growth of any business. 

What Makes An ERP For Small Businesses Different?

The ERP system for small businesses promotes the automation of processes in the company, which brings more agility and efficiency to administrative activities. Below, see the main reasons to invest in this technology.

More Versatility

It is a versatile system that companies can use from different segments that need to organize their activities in sectors such as Human Resources, accounting, tax, and inventory, among others.

The technology adapts according to the needs of your business, even if it is small or medium-sized. By having an online ERP, it is possible to access it from any machine and at any time without the need to invest in expensive infrastructure.

Broader And More Strategic Vision

By unifying business information into a single ERP system for small businesses, it is possible to have a broader view of the progress of each activity. With this, the manager has more control over the processes and is constantly updated on what is happening with the business.

In addition, obtaining data on the progress of activities makes it possible to have a more strategic view of what needs to be improved and what is going well in the company. An example of this is the functionalities focused on accounting, which provide complete reports on the company’s financial health.

Cost Reduction

With ERP software for small businesses, you have complete reports that allow you to analyze all your company’s financial movements deeply. It is essential to make better decisions when it comes time to reallocate costs or cut some expenses and even pave the way for new, more profitable investments.

Another point is the best analysis of your teams. With an ERP, you can identify improvement points in each professional’s daily tasks and transform them into strategic collaborators with task automation by eliminating wasted time with manual processes.

Tax Organization

The technology allows you to keep track of taxes that need to be paid, preventing them from delaying and generating fines. In addition, in some cases, it is even possible to take advantage of the unique conditions available for those who pay in advance, which can generate a cost reduction.

Error Reduction

When the company’s management is done manually, through spreadsheets, errors – mainly in typing – can be frequent. Management software minimizes these errors since the processes become automated and do not depend exclusively on human interference.

Therefore, by relying on an ERP for small businesses to manage your business, it will be possible to avoid failures that could result in losses for the company. In addition, sectors such as accounting could become even more efficient and agile.

Return On Investment

Many ERP management system options for small businesses do not require a significant investment. Therefore, they are ideal for small businesses that aim to modernize and organize their operations. 

Soon after its implementation, the software provides more efficiency and productivity, as it allows easy access to company information and avoids bureaucracy for the accounting sector to access this data.

Increased Data Security

Another advantage of having ERP software for small businesses is the increased security of sensitive data. All information stored in the cloud system is encrypted, thus preventing it from being interpreted by unauthorized persons.

This functionality is essential to protect the company’s and its customers’ personal data. According to the General Data Protection Law (LGPD), all companies that handle this type of information must keep it safe from leaks or misuse.

More Stock Control

Even in small businesses, it is essential to have good inventory management to avoid a lack of goods or items being stopped for a long time. This situation can generate financial losses for the company or even waste, like perishable products.

The ERP system for small businesses facilitates the organization, making it possible to record the items that enter and leave the stock. Thus, you always visualize which products need to be replaced and analyze the most and least sold items.

Also Read: Business Intelligence: What Makes Sense For Your Strategy

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