ERP Software for Small Business: Driving Efficiency and Profitability

When you’re running a small business, there never seems to be enough time. If you’re not managing operations, you’re wrapping up sales or assessing your inventory or ensuring invoices get out. … The tasks are never ending. Typically small business owners seek the help of software solutions that are easily accessible, such as local spreadsheets and file folders. But as a small business intent on growth, where do you go when the standard office applications are no longer cutting it?

Enterprise resource planning (ERP) software can create efficiencies that help small businesses eliminate unconnected software applications and cumbersome manual processes and enable them to streamline operations, save money and bring products to market faster. Many ERP software solutions are built with small businesses in mind and are priced to accommodate smaller budgets and implementation sizes.

ERP software can be the only system needed to run your entire business. We’ll show you some of the many ways small businesses can use an ERP solution, the benefits of implementing an ERP and the best ways to go about finding one that suits your business’ needs.

Contents

What is ERP software?

ERP software features for small business

Advantages of ERP software for small business

Choosing the right ERP software for your small business

QT9 ERP for small business

What is ERP software?

Enterprise resource planning software helps businesses manage day-to-day operations, centralizing front-end and back-end business processes, eliminating redundant tasks and integrating data and workflows. As an all-in-one solution, ERP software provides multiple integrated functions, including accounting, purchasing, manufacturing management and inventory control.

Most modern ERP systems are deployed via the internet, using a cloud-based platform, which works perfectly for small businesses since it allows for easier implementation, scalability and updating. However on-premise ERP platforms are still an option for organizations who prefer more control over their data and software infrastructure.

ERP software features for small businesses

ERP software systems have come a long way in the last decade, with capabilities that run the gamut from invoice creation to material requirements planning (MRP). The most common ERP applications include:

Accounting

Basic ERP accounting functions encompass accounts receivable, accounts payable and general ledger functions, allowing small business management to oversee budgets and financial transactions from a single source. ERP accounting modules draw data from integrated applications, simplifying workflows and informing financial management. Analytics capabilities enable real-time insight into sales, purchasing, profitability and costs for optimal planning.

Inventory control

ERP inventory control applications allow small businesses to optimize their inventory, ensuring that products are on hand to meet demand or calling attention to stock that isn’t moving or is nearing an expiration date. Inventory applications can be configured to automatically initiate common inventory management tasks, such as allocating inventory or auto-reordering/manufacturing product when it reaches a certain level. Material purchases can be easily monitored and warehouse space optimized with built-in forecasting features.

Manufacturing

Manufacturing ERP applications unify production planning and resource management, so a business can better manage costs while optimizing inventory levels. Manufacturers can set production schedules and allocate material resources using bill of materials and machine utilization. More advanced ERP systems can automatically link sales orders to jobs, automate job scheduling, link to MRP planning and get built-in traceability for reporting and analytics.

Sales management

ERP sales management applications hone sales workflows for simplified internal use and better customer outcomes, with the goal of increasing revenue. Sales workflows are automatically integrated with related business processes, such as accounting and manufacturing.

Purchasing

ERP purchasing applications enable you to manage all purchasing processes from one central system. This includes PO approval, supplier management and receiving inspection. An integrated ERP enables businesses to monitor purchasing activities and quickly address any issues that arise.

Advantages of ERP software for small business

Many smaller businesses assume that ERP systems are only for large-scale enterprises, but ERP software offers many advantages for smaller businesses, primarily by automating time-consuming, labor-intensive processes. The major benefits of ERP software for small businesses include:

• Lower overall costs
• Greater accuracy
• Faster delivery times
• Reduced inventory costs
• Streamlined operations
• Real-time business data

Lower Costs

ERP software lets a small business do more with less, providing one main hub for all data and work applications. Time-consuming manual processes are eliminated and workflows integrated, which helps reduce labor costs and lets employees focus on tasks that more directly impact the bottom line. Having real-time information about production schedules and inventory availability helps small businesses plan manufacturing activities more precisely, helping to avoid production down time.

Greater Accuracy

Errors can lead to incorrect documentation or production delays, negatively affecting delivery times and customer satisfaction. Automating processes and manual tasks, such as data entry, eliminates the risk of errors that may impact operations.

Streamlined Operations

Having one solution for all of your business’ data and activities enables small business owners to more easily integrate operations and gather pertinent data, providing a big-picture view of activities that help inform decision-making. It also helps ensure all employees are aware of current statuses and enables them to collaborate more easily, even across multiple locations.

Real-time data and analytics

ERP systems provide a single source of truth for all operations, giving employees and management real-time information about key business activities. This comprehensive view enables management to make informed decisions faster. With advanced reporting and analytics, businesses can easily identify trends, predict potential challenges and make proactive adjustments to improve performance.

Simplified Traceability

Many ERP software solutions can automatically generate unique lot and serial numbers. This provides more streamlined and efficient inventory management, making it easier to identify and locate product in the event of a recall. Data generated from lot and serial numbers can also be used to analyze and identify trends.

Reduced Inventory Costs

With real-time tracking and advanced analytics, ERP systems provide an accurate view of inventory levels, helping businesses avoid costly overstocking or stockouts. By optimizing reorder points and automating replenishment alerts, ERP ensures that stock levels are maintained at ideal thresholds. This not only reduces storage costs but also prevents losses from expired or obsolete products.

ERP software also provides demand forecasting tools that use historical data and market trends to more accurately predict future needs. This allows small businesses to plan purchases more effectively, aligning inventory with customer demand while minimizing waste.

By connecting inventory data with sales, production, and procurement processes, ERP software fosters better collaboration across departments. The result is streamlined operations, reduced carrying costs, and more efficient cash flow management—all critical for the financial health of a small business.

Faster Delivery Times

With real-time tracking of inventory, production schedules and order statuses, ERP software ensures that businesses have the materials and resources needed to fulfill orders promptly. Automated workflows reduce delays caused by manual errors or miscommunication between departments, allowing for faster order processing and fulfillment. By providing a centralized platform for managing logistics and shipping, ERP software helps businesses coordinate shipments more effectively, ensuring timely delivery to customers.

How to choose the right ERP software for your small business

Choosing the right ERP software is a critical decision for a small business where there isn’t a lot of room for error. Small business management should start by identifying their specific needs and challenges. This includes evaluating core processes like inventory management, order processing, financial tracking and sales. A clear understanding of these requirements helps narrow down ERP solutions that align with a business’ goals. Key considerations include:

• Budget - Small businesses should balance affordability with functionality, looking for ERP systems that offer the essential features they need without unnecessary add-ons that inflate costs. Cloud-based ERP solutions are often the most cost-effective choice for a small business, as they reduce the need for upfront investment and provide scalability to support growth.

• Scalability - Most small and medium-size businesses will not need to or have the resources to implement all applications in an ERP suite at the same time. The best ERP systems allow businesses to scale the software to their immediate needs, leaving room to implement other modules down the road when it makes more sense for growing business operations.

• Ease of use and implementation - Small businesses typically lack the resources for lengthy or complex deployments, so selecting an ERP system with an intuitive interface and strong vendor support can streamline the transition. Software that is easy to use significantly improves user adoption, increasing productivity and allowing a wider range of users to access its functionality without extensive training. A good ERP system lets you accomplish tasks with fewer layers, providing clear guidance and prompts with an intuitive interface.

• Support services - The support provided by an ERP software provider is integral to the continued success of its use. Whether its in-person or internet-based consultations, a library of templates and documentation, or how-to videos, look for the kind of ERP software provider that offers support that fits your needs. Any provider worthy of your business will offer support for its product throughout its use, from implementation to everyday use.

• Cloud-based platform - Today’s cloud-based ERP platforms make software implementation and updates easier than ever. It also saves your company from having to employ personnel to maintain the system. Out-of-the-box ERP systems that offer pre-built modules and features are ready to deploy as soon as the user is ready. Look for out-of-the-box solutions that match your needs from the start, as customization is usually limited.

• Cost effective - There are many pricing models used by ERP software providers. Make sure your business’ needs are covered by the core applications provided, and be aware of which applications are add-ons and at what cost. An out-of-the-box solution can provide robust applications while saving money for your organization.

Reading reviews, seeking recommendations, and requesting demos or free trials can provide insights into the system’s real-world performance. By carefully considering these factors, small businesses can choose an ERP solution that not only meets their immediate needs but also positions them for long-term success.

QT9 ERP for small businesses

QT9 ERP is a comprehensive system that can work for a small business or any size company, in any industry. QT9 ERP improves efficiency and accuracy through integrated data and automated operations, all without breaking the bank.

QT9 ERP provides more than 17 modules as part of its standard offering, as well as easy access to data and analytics to help small businesses make the best decisions for moving forward. With QT9 ERP you get:

• 17+ modules, including unlimited Bill of Materials
• Quick implementation
• Tailored customer support
• Customer, compliance, supplier and physical inventory web portals
• Lot and serial number inventory control
• Access to additional professional services

QT9 ERP also offers electronic batch record (eBR) and device history record (DHR) applications to address the needs of life sciences companies. Our ERP system lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.

Reach out today for more information about QT9 ERP.