9 Key Benefits of an ERP System

ERP systems offer many advantages, from workflow automation to data-driven decisions. Businesses of all sizes find them valuable. Numerous studies confirm their positive impact on operations and efficiency.

ERP (Enterprise Resource Planning) systems assist businesses in tracking and managing internal operations. For many industries, they are essential for effective business operations and bookkeeping.

Whether a small business or an enterprise solution, you'll find critical features in every ERP. Business intelligence and analytics, supply chain management support, and detailed accounting are just a few reasons companies are using them.

It can be a significant shift for a business that has never used an ERP. Even selecting your chosen software (NetSuite ERP, Sage Business Cloud, Microsoft Dynamics, etc.) can feel overwhelming. However, studies show positive outcomes.

According to one 2020 study, 93% of businesses reported that their ERP project was successful. In another Panorama report, 95% of companies said an ERP application improved some business processes. Half of them said that their ERP implementation improved all their processes.

It may take some work to get started. But from all accounts, an ERP platform is worth it.

So, why do so many businesses take the plunge and invest in an ERP solution? Look at 9 of the most significant business benefits an ERP system can provide that you may be missing.

1. Automate Your Workflow

A primary benefit of an ERP system is to automate repetitive tasks. It can automatically generate and distribute reports, manage inventory, and handle finance and accounting tasks.

Automation helps businesses by reducing mistakes and making processes more efficient. This is ideal for many business operations, such as supply chain management and accounting.

2. Leverage Data to Make Business Decisions

A modern ERP system gives accurate and up-to-date information about essential data in your business. It avoids messy or non-standardized data.

Organized data helps with comparing year-over-year and making accurate forecasts. ERPs usually have a dashboard that displays important data and financial information in one place. Having precise information helps make better forecasts and enables data-driven decision-making.

3. Optimize with Integrations

An integrated ERP can collect, store, and analyze data from all departments, unifying your business. This capability provides a central view of the financial operations that can be shared across the organization.

By integrating departments and software in the same ERP, we can reduce data errors and duplications. This also improves communication and collaboration.

4. Take Your Business with You

With cloud-based and mobile-enabled ERP systems, you can access your ERP no matter where you are. This informs you about critical figures like sales, revenue, or customer acquisitions.

Business owners and department leads find this advantage invaluable. It lets them stay informed about their company or project, even while traveling or working remotely.

5. Empower Your Employees

You hired your employees because they are excellent at what they do. An ERP system gives them room to let them shine. A proper ERP replaces repetitive manual tasks with automation. This tool creates simple reports that help your employees focus on their strengths and improve. Having access to ERP data enables them to make informed decisions on their own, freeing up managers' time.

6. Get Help with Regulatory Compliance

It doesn't matter how great a company you are running if you are not compliant with federal, state, and local regulations because you won't be in business for long.

Depending on which industry your business is in, there can be a wide range of legal requirements you have to meet. An ERP can make your data more accurate, protect sensitive information, and assist with audits.

7. Financial Management

You can only manage your company's finances if you completely understand where the money is coming from and where it is going. ERP systems provide a complete view of your business and tools to effectively plan, organize, and allocate funds.

When combined with integrations, boosting collections, streamlining invoicing, and offering branded payment experiences are possible—among other benefits.

8. Meet Customer Expectations

Customers have increasingly high expectations of companies. They expect a seamless multichannel experience and personalized customer service. CRM software can help with some of that demand. An integrated ERP system enables you to create unique customer care solutions and measure satisfaction. When you can measure how satisfied customers are, it becomes easier to track and improve customer retention.

9. Improve Transparency

ERP solutions provide comprehensive visibility throughout your business. One of the most obvious times you can see this is with your supply chain. These systems can track finished products and materials from manufacturing to delivery. Transparency helps you understand and foresee issues within the supply chain, like service delays or stock outages.

Streamline Your ERP Payments Workflow with Paystand

If you are starting to decide which ERP is suitable for you, or if you're looking to get the most out of your existing ERP, Paystand can help.

Download our ERP evaluation checklist and get a straightforward list to help you find the best ERP for your business. The checklist helps you prioritize what to look for in an ERP, breaking the criteria into a manageable list.

If you're already using the NetSuite ERP, download our Best Practices Kit that will help guide you from the basics of using NetSuite ERP to advanced shortcuts and automation. We walk you through choosing the proper payment application for NetSuite, creating e-invoices with embedded payment links, and integrating and automating payments in NetSuite directly with Paystand.