An ERP for small businesses is critical in streamlining operations and enhancing efficiency.
You want a cloud ERP solution that is easy to use, adaptable, and most importantly, a perfect match for your specific business needs.
The ERP market is predicted to reach USD 181.04 billion by 2032, a massive CAGR of 15.5%, indicating that it’s no longer restricted to larger enterprises.
Let’s look at the role of ERP in small businesses and my top ten picks.
Key Takeaways
- A cloud-based ERP solution is ideal for businesses as it helps them streamline their processes and increase efficiency.
- The ERP market is huge and predicted to reach USD 181.04 billion by 2032.
- An ERP plays a crucial role in small businesses as it centralizes their data, increasing control and visibility.
- NetSuite, Cin7 Core, and Zoho Creators are popular ERP options for small businesses.
Role of ERP systems in small businesses
When you are a small business, your CPA or a bookkeeper would recommend accounting software like Zero or QuickBooks Online to run your finance and accounting.
Now, as a business owner, you can choose whether to be a salesperson or you want to hire someone for the job.
You can make the decision knowing that sales are important, especially because your entire business depends on it.
Also, sooner or later, you will hire a salesperson and they’ll eventually feel the need for a customer relationship management system.
Salesforce and HubSpot are some of the common industry names that you’ll come across while searching for the right CRM solution for your business.
This is when things will start to escalate, as you’ll keep adding software to meet specific departmental needs, whether for inventory management or human resources.
There will come a time when you’ll have 14 to 15 systems, either partially or fully integrated. And all of these systems will collaborate to run your business.
Soon, you’ll hit the ceiling, wondering what’s going wrong with your business. You could be experiencing data inconsistencies or delayed information leading to poor performance.
Another epiphany would be realizing that you’re wasting your time hiring resources to do tasks that can easily be automated.
Automation allows your employees to use that time to perform strategic tasks, like developing marketing campaigns, by leveraging customer data.
This is where you’ll realize the role and importance of an ERP.
With processes like Netsuite ERP implementation, you’ll witness significant growth in productivity and operational efficiency.
But here’s what you should know: The decision to get an ERP solution should depend on the size of your business.
For example, you can do without an ERP system when making 20K to 30K in a year.
However, it is best to invest in an ERP system if your revenue is close to a million dollars or if you are in a rapidly growing industry.
10 best ERPs for small businesses
Let’s explore the top 10 ERPs for small businesses.
1. NetSuite
NetSuite is a comprehensive cloud-based ERP solution that enhances cross-departmental data visibility. It integrates different business management functions to give you a centralized view of data.
Oracle’s NetSuite reduces the likelihood of errors by automating repetitive tasks like order management and payroll processing. It also allows the employees to focus on strategic initiatives by analyzing customer data more closely.
It offers several tools for marketing and inventory management. It helps with scheduling, planning, invoicing, billing, and other business processes.
You can integrate NetSuite with e-commerce platforms, like Shopify, WooCommerce, Amazon, and Walmart. It also integrates with CRM platforms such as Salesforce.
NetSuite offers highly customizable features making it extremely scalable. However, some of these features are available after added fees.
Small businesses often get overwhelmed with the extensive range of features.
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2. Cin7 Core
Cin7 Core is a multi-channel inventory management solution. This ERP software integrates with different sales channels to give businesses real-time visibility and control over their inventory.
It allows businesses to track their inventory in real-time. It acts as a cost-saving solution as businesses avoid buying unnecessary inventory. It also ensures they don’t oversell any product.
Businesses increase operational efficiency and reduce errors by automating different business processes, such as sales, purchasing, and warehouse management.
In addition to automated workflows, Cin7 supports 3PL integrations and has numerous reporting and forecasting tools.
You can easily integrate it with third-party applications, like QuickBooks Online and Xero to enhance your accounting.
While it is user-friendly, it does have a learning curve for complete beginners.
3. SAP Business One
SAP Business One is an all-in-one solution that helps with business management. It is a flexible ERP software that has powerful accounting, financial, inventory, sales, and CRM features.
The centralized data view enhances operational efficiency and data reliability. This ERP system discards the need for individual systems that eventually become more costly.
If you run an international business, this ERP solution is excellent as it offers multi-currency support. You have purchasing and procurement features to strengthen your e-commerce business.
You can easily integrate it with Magento, Shopify, QuickBooks Online, PayPal, and Stripe.
While it can be limiting without technical expertise, its strong financial and inventory management functionality makes up for it.
4. Zoho Creator
Zoho Creator is an ERP solution that helps businesses build and manage tailored solutions without coding experience.
This low-code platform simplifies business processes and includes features like advanced workflow editors. It comes with enterprise-level data-driven functionality, supporting seamless data exchange through automation.
Simplify transactions by connecting Zoho Creator with Stripe and PayPal. It can also be integrated with QuickBooks to enhance your accounting.
Its strong integration ability with third-party applications can improve workplace communication, such as the integration of Slack and Zoho Creator.
While it does require technical expertise, especially if you’re interested in advanced customization, it is relatively cheaper.
5. ERPNext
ERPNext is a cloud-based open-source ERP solution offering versatile features without additional licensing fees.
It’s an excellent addition to an e-commerce business as it centralizes different business operations by uniting accounting, order management, payroll, CRM, and manufacturing data.
You can also benefit from its standout features like asset management, website management, and helpdesk support.
It’s popular for its integration with e-commerce platforms like WooCommerce, Amazon MWS, and WooCommerce.
It further simplifies transactions through integrations with PayPal and Stripe. Other integrations include Google Drive, Google Calander, Microsoft OneDrive, and Slack.
6. QuickBooks Enterprise
QuickBooks is synonymous with accounting, and QuickBooks Enterprise is simply an extension of that.
This ERP software is for small and large businesses looking to enhance their accounting and business management processes. This software combines your inventory and payroll processing processes with its excellent accounting features, giving you a unified view of your business.
This single platform helps with time tracking and has advanced reporting and analytical tools.
QuickBooks Enterprise is a cloud-based ERP solution that is user-friendly and easily accessible. It gives businesses pricing controls and field service management solutions.
You can integrate it with Google Maps, UPS, FedEx, Salesforce, and Webgility. It is highly scalable and has different pricing for different levels.
What makes it great is its user-friendly interface as you don’t need to be a qualified accountant to run it.
7. Deltek
Deltek is an excellent choice for project-based industries. It offers versatile tools to meet specific business needs, for example, it can help you manage your finances with its comprehensive finance management system.
You can benefit from highly scalable project management tools and real-time visibility across channels. This gives you control over business processes to increase efficiency.
You can integrate it with QuickBooks Online for finance management and Salesforce for CRM management. Additional integrations include Microsoft Project, SAP, Oracle, and Google Workspace.
8. Dolibarr
Another open-source ERP solution on the list, Dolibarr is a highly customizable software that requires no coding experience.
It has an active community that keeps you updated with its latest developments and security enhancements.
Its diverse list of features includes logistics, stock management, manufacturing, and warehouse management. You also have accounting features like invoicing that make it excellent for finance management.
You can integrate with multiple e-commerce platforms like WooCommerce. It also supports PayPal and Stripe for managing transactions.
9. Dynamics 365 Business Central
Most businesses that operate on Outlook and Excel transition to Dynamic 365 Business Central. This small-scale ERP system is excellent for finance management but it can be limited in customer experience features.
It offers easily customizable reports to give businesses a current view of their financial health.
This ERP solution also translates quotations into invoices and pay orders, giving holistic and 360 inventory management support. It highlights low and dead stocks.
10. Sage Intacct
Sage Intacct has to be one of the best small business ERP solutions with a flexible and reliable financial management system that automates different financial processes like data entry and reporting.
It increases efficiency and adds accuracy to your data, eventually helping you make data-driven and informed decisions.
It has features to support cash flow management and budgeting, which are crucial aspects of any e-commerce business. You can also manage account payables and receivables to keep track of your transactions.
The bottom line
Most people associate ERP solutions with large enterprises, but that’s not entirely true.
Small businesses can benefit from ERP implementation as it increases workflow efficiency and gives control over operations.
Make sure you customize the ERP solution to give your business exactly what it needs.
While its implementation can be intimidating, and even costly for startups, if you’re scaling and dealing with complex data and business processes, this decision will serve you well.
Ledger Labs has 12+ years of experience helping businesses with accounting and integrative solutions.
