What is ERP accounting software?
This is a very common question that we’re often asked. ERP stands for enterprise resource planning. It was once the domain of large corporations. But with the advances in technology, it’s also become a viable route for many mid-market organisations. In itself, the term doesn’t really tell us a great deal, so we’ve broken down the key elements below:
Integrated system
An ERP system integrates all your essential business software. This can include everything from accounts to projects, HR, manufacturing and CRM. In fact, any software that you use to run your business.
Because they’re all interlinked, each piece of functionality can interact with any other. The information simply flows between them. For instance, project or contract timesheet costings being accessible via the accounts software. This makes it easier for the organisation to manage day-to-day operations including everything from sales and marketing to planning, production and more.
Modular based
As you might have gleaned from the above, most ERP systems are made up of different modules. This is beneficial to an organisation as they can pick and choose which components are the most appropriate for their business.
In this respect, it’s very flexible and allows them to add new modules as they grow. This means that they don’t have to implement one large system all in one go but can do it in phases. The project is more likely to be a success this way because it makes the whole process more manageable.
Single database
All these modules are based off one single database. The benefit? One version of the truth. Everyone is working from the same data. Plus, it’s accurate, not only reducing risk but saving time and money.
This is because it brings order to the chaos. No more paperwork and spreadsheets strewn around the business. We all know the frustration of having people creating many versions of figures. You're then left trying to work out which one is correct. A single database avoids this problem.
Also, have you ever noticed that when you want some important information that person is on holiday or unavailable? With an ERP system all the information is centralised. This allows any authorised individual to access it. It’s a much easier way to get rid of the bottlenecks and the pain of trying to track information down too.
One login
With an ERP system, employees only need one login to access the functionality that’s relevant to them. Usually there’s a central dashboard that allows them easy access in and out of each part of the system. This makes it so much simpler than having to log into different systems which is a frustration for people. When you make systems as simple as possible, then people are more likely to use them.
Hybrid approaches
Modern ERP systems allow you to integrate a hybrid of on-premises and cloud-based software. As an example, an organisation might want to keep its finances on-premises but have its expenses, timesheets, CRM or document management in the cloud.
This flexibility makes it possible for employees to log on from anywhere. They can carry out their tasks, view information or access BI tools for all the KPIs, stats, trends and reports that are important to the work they do.
The end result is that the organisation has one unified system. It brings all the core components of their business together. It introduces much better processes and pre-defined workflows. It cuts out all the unnecessary tasks which are usually administrative in nature. With ERP you can create a much leaner business by using technology as a foundation for greater efficiency and growth.
