ERP System Modules for Small and Medium Enterprises in 2023

Small and Medium businesses Can gain a lot from ERP system, such as improved productivity and more simplified operations. Cloud-based ERP software for small businesses has grown more practical and affordable with the growth of cloud computing, making it a fantastic choice for small firms aiming to expand. It’s critical to take your company’s unique demands into account when selecting the finest ERP for small business, and to pick a plan that both fits your budget and expands with your operations.

What is an ERP System ?

Enterprise Resource Planning is referred to as ERP. It’s a kind of software system that combines several company activities and procedures into a single platform, helping businesses to efficiently manage and optimize their operations.

Typically, an ERP system is made up of a collection of connected apps that address many facets of a company, like:

• Accounting and Finance: Manages budgeting, invoicing, financial reporting, and financial transactions.
• Supply chain management:Logistics, suppliers, inventory, and procurement are all managed.
• Human Resources: Oversees payroll, benefits, attendance, performance reviews, and employee statistics.
• CRM: Sales funnels, marketing campaigns, customer data, and interactions are all managed by CRM.
• Manufacturing and manufacturing: Manages resource allocation, scheduling, quality control, and manufacturing procedures.
• Project management: Involves keeping track of work, resources, and deadlines.

Providing a consolidated database that supports many organizational operations is the primary objective of an ERP system. Information is better shared across departments, processes are streamlined, productivity is increased, and data-driven decision-making is made easier.

ERP systems come in two flavors cloud-based, where the program is accessed remotely over the internet, and on-premises, where it is installed and maintained on the company’s servers. Scalability, customization possibilities, and connections with other software programs are common features of modern ERP systems, which let them adapt to the unique requirements of various enterprises and industries.

ERP System for Small Business

For a small business, putting an ERP system into place can have revolutionary effects. This is an explanation:

Customized Solutions: Seek for ERP made especially for small companies. These frequently include expandable modules that address key operations like accounting, inventory, CRM, and HR to meet the demands of your company.

Cost-effectiveness: Take into account subscription-based cloud-based ERPs. They typically don’t require large upfront investments in hardware or IT support because they offer frequent updates and cheaper upfront costs.

Scalability: Select an ERP that will expand with your company. Make sure it can support more users, modules, or features as your company grows.

Ease of Use: Choose interfaces that are easy to use and don’t require much training. Having a system that is simple to use and intuitive will encourage staff adoption.

Integration: Seek conformance with other software that your company utilizes. Processes can be streamlined and data silos avoided using integrations.

Mobile Accessibility: For companies that operate remotely or with mobile workers, having mobile-friendly ERP access can be essential. Inspect for cross-device compatibility.

Support and Maintenance: Take into account the help that the ERP supplier offers. For your business to continue operating efficiently, prompt maintenance and troubleshooting services are essential.

Data Security: Verify that data security guidelines are followed by the ERP system. This is especially crucial when managing private clients or financial data.

Customization: Look for an ERP that permits a certain amount of customization. It ought to support the requirements and workflows unique to your sector.

Comments and Evaluations: Look up customer testimonials and ask companies that are comparable to yours for suggestions. Perspectives from other system implementers can be worthwhile.

When choosing an ERP for a small business, it’s important to assess the unique requirements of your operations, take expansion strategies into account, and comprehend the strengths and weaknesses of the many systems that are available. It’s an investment that can greatly boost productivity and growth if it is made sensibly and executed well.

ERP Modules Used By Small-Medium Businesses

CRM

The most significant stakeholders in any organization are its customers. To keep customers and get the most out of those commercial ties, it’s always critical to preserve customer interactions. CRM component to assist SMEs in managing leads, opportunities, and customer concerns while improving customer service. Through data consideration, including information from their social media activities, historical and previous purchases, interactions with support staff, and other pertinent data, the ERP system provides total company customer profiling. 

Your list of leads, customers, and prospects is the central component of a CRM. Though it may not be the most significant information, this is some of your most important data for sales and marketing. More feature-rich CRM solutions have a contact manager that gathers information from names and electronic mail addresses. The interaction histories of your leads, customers, and prospects may be tracked and recorded with these contact managers.

Because they now have context for the information you’ve already delivered to each person or discussed, this aids in the work that your sales and marketing departments conduct. The customer is the key to earning income in today’s fiercely competitive business world, and giving them the right service is yet another crucial responsibility for any organization. CRM modules assist businesses in enhancing their relationships with customers, boosting sales, and optimizing cross- and up-selling opportunities.

Inventory Management

 For the majority of SMEs, inventory control represents their biggest obstacle. There are situations where the sales estimate is primarily dependent on conjecture, the business is having trouble keeping up with an increase in orders, or it depends largely on Excel spreadsheets; in these cases, obtaining reliable information becomes difficult. The inventory module provides a user-friendly, automatically synchronized information tracking system to help you keep track of your goods.

With features like syncing with the sales module, multiple inventory and location management, item images, units of measurement, keeping track of stock movements, providing products with their entire history with reference, providing products stock value with a product, quantity, etc., the inventory management module has benefited your business. Increasing inventory transparency is made simple for the company by inventory management to boost sales and purchases, enhance delivery efficiency, and boost inventory efficiency.

Accounting Module

Accounting Module provides comprehensive access to accountants, bookkeepers, and CPAs to analyze, adjust, and close on time, among many other benefits. It also provides SME business owners with quick, customizable access to the financial data and reporting tools they need to make important business decisions.

The accounting module includes functions such as generating and validating invoices for customers, registering payments, integrating various payment methods, generating bills for vendors, generating a list of past-due receivables, automatically generating journal entries, and providing customized reporting in addition to generic accounting.  Since the accounting module deals with the business’s finances, it is among the most crucial modules. A business can benefit from an accounting module by increasing profitability, reducing monthly expenses, adhering to rules and regulations, and providing real-time information. 

Purchase Module 

A key component of any industry is purchase. Purchase handles all necessary products or items that are not available in the store department. It compiles a list of items required by the industry, supplies all departments with the items they need, maintains a running total of the variety of items, and works with suppliers to acquire new stock. The Purchasing Module facilitates quick and simple vendor administration, receiving inventory, and purchasing.

It is simple and easy to create new vendor invoices from purchase orders or by duplicating an existing one. The software supports purchase returns and enables credit memos or refunds to be issued as cash receipts. It has attributes.such as keeping an eye on orders and RFQs (requests for quotes), managing incoming products, automating ordering, managing subsequent orders, managing internal moves, monitoring stock levels and availability, adding product variants, etc. These features support numerous purchase-related tasks, including order automation, cost approval prior to incurrence, and improved project profitability.

Sales Module

A company’s ability to maintain good operations depends primarily on its ability to generate sales. It goes without saying that the sales module is one of the most important ERP system components for any small to medium-sized business. The sales module offers comprehensive understanding of the primary sales and distribution business operations, including order processing, customer credit, backlog management, returns handling, delivery, pricing and taxation, and inquiry, quotation, and sales order processing.

By taking charge of the quote and order-to-cash process with integrated approvals, discounting rules, pricing, and more, the sales module gives firms an advantage. It also speeds up the order management process with online approval and workflow management, minimizes paperwork and errors, and more. 

Manufacturing Module

One of the modules that small and medium-sized businesses utilize the most is the manufacturing module. The process of converting raw resources into completed goods is called manufacturing. This massive and drawn-out procedure is made up of numerous discrete jobs that are difficult to combine and frame into a single image. Mismanagement could occur in any part of this process with ease. The manufacturing module of the ERP system’s job is to finish inventory management by putting in place a single, centralized manufacturing module that will carry out the tasks necessary for an efficient manufacturing process.

Features like Manufacturing orders, Work orders, Manage Bill of Materials, Organize Work Orders, Work-Center Capacity, Optional Routing, and Worksheets are included in the Manufacturing module. The ERP system’s manufacturing module benefits your company to properly organize the manufacturing process, deliver the product on schedule, make efficient use of work centers and equipment, and reduce the amount of capital needed for production. 

HRMS

The Human Resource Management System is referred to as HRMS. It’s a software program made to automate and simplify certain HR procedures and activities inside a company. HRMS acts as a single, integrated platform for managing all facet of an organization’s human resources, including hiring, payroll, performance reviews, and employee data management.

The ease with which ERP modules facilitate collaboration is one of their main benefits. Data must be manually shared when systems are kept apart.Therefore, you must store the data in a format that the other system can use if you need to transmit it from an HR system.

For instance, your HR system would require CRM data to determine whether to award bonuses to your sales reps if their compensation was contingent on the quantity of leads they converted. You can incorporate an HR module into your ERP to automate the administration of bonuses when and if they are earned, in place of manually counting them. Your CRM data is automatically shared with the HR module. Additional forms of integration may also be available to automate various procedures. The ERP system’s HRMS module improves information sharing and resource allocation, which benefits the company. and cooperation, maintains current data, and facilitates role-based access control. 

ERP System for Small Business In 2023 

The following ERP solutions are appropriate for small firms and may remain popular in 2023:

• SAP Business One
• Odoo
• Acumatica
• Microsoft Dynamics GP

SAP

Systems, Applications, and Products in Data Processing is what SAP stands for. This international corporation specializes in business intelligence, supply chain management, ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and other enterprise software products.

Key Features of SAP:

1. Enterprise Software Solutions: SAP offers a wide range of software solutions designed to help businesses manage various aspects of their operations, from finance and HR to logistics and analytics.
2. ERP (Enterprise Resource Planning): SAP ERP solutions integrate core business processes such as finance, sales, procurement, manufacturing, and human resources into a unified system.
3. CRM (Customer Relationship Management): SAP CRM enables businesses to manage customer relationships, sales processes, marketing, and customer service interactions.
4. Supply Chain Management (SCM): SAP’s SCM solutions optimize supply chain processes, including procurement, production, inventory, and distribution, enhancing efficiency and reducing costs.
5. Business Intelligence (BI): SAP’s BI tools provide analytics, reporting, and data visualization capabilities, enabling businesses to gain insights for informed decision-making.
6. Cloud-Based Offerings: SAP has been transitioning many of its solutions to cloud-based platforms, offering greater flexibility, scalability, and reduced infrastructure costs for businesses.

Pros 

• The dashboard and user interface are straightforward and simple to use.
• The complete customer lifecycle is displayed in relationship maps.
• Simple to bill and pay suppliers and clients

Cons

• Limited customization options and functions for human capital management
• Costs for additional features and add-ons might mount up, making it less affordable.
• A steep learning curve may accompany challenging implementation.

Odoo

Odoo is an open-source collection of integrated business apps with a wide range of features that are necessary for handling diverse business-related tasks. It provides a large selection of modules that address a wide range of topics, including project management, manufacturing, inventory, accounting, human resources, and sales and CRM.

Key Features of Odoo:

1. Modularity: Odoo is built on a modular structure, allowing businesses to choose and integrate specific modules based on their needs. This modularity facilitates scalability and customization.
2. Wide Range of Applications: It offers a comprehensive suite of applications covering various business functions, including CRM, sales, e-commerce, inventory, accounting, HR, manufacturing, and more.
3. User-Friendly Interface: Odoo is known for its intuitive and user-friendly interface, making it accessible to users with varying levels of technical expertise.
4. Customization: Businesses can tailor Odoo to fit their specific requirements by customizing modules, workflows, and reports, allowing for flexibility and adaptability.
5. Integration: It provides the ability to integrate with other systems and third-party applications, enabling data synchronization and smoother workflows.
6. Community and Support: Being an open-source platform, Odoo has a large community of users and developers who contribute to its improvement, and it also offers support services.
7. Scalability: Odoo can cater to the needs of both small and large businesses, allowing them to add modules or functionalities as they grow.

pros

• Open-source, modular, flexible, customizable for various business needs.
• smooth interoperability between modules with thorough documentation
• Scalability, staff management, and easy deployment

Cons 

• Initial setup might require technical expertise, integration complexities.

Acumatica

Acumatica is an Enterprise Resource Planning (ERP) software package that runs on the cloud and is intended to assist organizations in managing different parts of their operations. It offers an extensive collection of integrated tools that address project accounting, financial administration, distribution, and customer relationship management (CRM).

Key Features of Acumatica:

1. Cloud-Based Platform: Acumatica operates entirely in the cloud, allowing users to access the system from anywhere with an internet connection. This offers flexibility, scalability, and eliminates the need for on-premises hardware and maintenance.
2. Modular Structure: Similar to other modern ERP systems, Acumatica operates on a modular structure. This enables businesses to select and integrate specific modules based on their operational requirements, facilitating customization and scalability.
3. Comprehensive Business Applications: Acumatica offers a wide range of applications covering financial management, CRM, distribution, project accounting, manufacturing, e-commerce, field service, and more.
4. Flexibility and Customization: The platform is known for its flexibility, allowing users to customize workflows, reports, and dashboards to suit their specific business needs. This adaptability is particularly useful for businesses in various industries.
5. Real-Time Insights: Acumatica provides real-time analytics and reporting, enabling businesses to make informed decisions based on up-to-date data and insights into various aspects of their operations.
6. Integration Capabilities: It supports integration with other applications and systems, allowing seamless data flow between different business processes and reducing data silos.
7. Scalability: Acumatica is suitable for small and midsize businesses, offering the flexibility to scale as the business grows without significant disruptions.

pros

• new and enhanced UI that can accommodate an infinite number of users
• Reporting that includes individual claims and drill-down expense categories
• CRM to store and manage client data centrally

Cons

• It is challenging to customize the user interface and functionality cannot be hidden.
• Email integration is difficult and necessitates password sharing between users.

Microsoft Dynamics GP

The enterprise resource planning (ERP) software program Microsoft Dynamics GP, formerly known as Great Plains, is intended for small and medium-sized enterprises. It provides a number of features to facilitate effective management of operations, sales, inventories, human resources, and finances.The enterprise resource planning (ERP) software program Microsoft Dynamics GP, formerly known as Great Plains, is intended for small and medium-sized enterprises. It provides a number of features to facilitate effective management of operations, sales, inventories, human resources, and finances.

Key Features of Microsoft Dynamics GP:

1. Financial Management: Dynamics GP provides tools for managing general ledger, accounts payable/receivable, cash flow, budgeting, and financial reporting.
2. Supply Chain Management: It includes features for inventory management, purchasing, order processing, and tracking shipments to streamline supply chain operations.
3. Human Resources and Payroll: Dynamics GP assists in managing employee information, payroll processing, benefits administration, time and attendance tracking, and compliance with HR regulations.
4. Sales and Marketing: It facilitates sales management, customer relationship management (CRM), sales forecasting, and marketing campaign tracking.
5. Business Intelligence and Reporting: The solution offers reporting and analytics tools to generate insights into various aspects of the business, aiding in informed decision-making.
6. Integration Capabilities: Dynamics GP integrates with other Microsoft products like Office 365, Outlook, and Excel, as well as third-party applications, enabling data synchronization and smoother workflows.
7. Customization: It provides customization options to tailor the system to specific business needs, allowing for the creation of custom workflows, reports, and dashboards.

pros

• Using a universal database, straightforward personnel management
• Processing payables with several team members is simple and rapid.
• Year-end taxes accompanied with W2 and health insurance forms 

Cons

• Because the dashboard has an excessive number of options and buttons, even simple tasks might become complicated.
• Data is out of sync and modules don’t always interact well.
• Reports aren’t often very strong, and word templates aren’t always easy to utilize.

Microsoft Dynamics

Microsoft Dynamics is a suite of customer relationship management (CRM) and enterprise resource planning (ERP) software programs. It includes a variety of options designed to meet the different demands of companies of all shapes and sizes.

Key Features of Microsoft Dynamics:

1. Dynamics 365:
   • CRM: Dynamics 365 CRM offers tools for sales, customer service, marketing, and field service, enabling businesses to manage customer relationships and interactions.
   • ERP: Dynamics 365 ERP includes modules for financials, supply chain management, human resources, and more, offering integrated business management capabilities.
2. Dynamics GP (Great Plains):
   • An ERP solution primarily designed for small and midsize businesses, providing functionalities for financial management, supply chain, HR, and sales.
3. Dynamics NAV (Navision):
   • Also an ERP system aimed at small and medium-sized businesses, offering modules for finance, manufacturing, distribution, and CRM.
4. Dynamics AX:
   • An ERP solution primarily for larger enterprises, supporting finance, HR, manufacturing, supply chain, and operations management.

Pros

• Since everything is hosted on the cloud, business automation for workflows is quite beneficial for providing a quick view of data. 
• This is especially true for companies with remote workers.
• Lead scoring in conjunction with marketing strategy and audience segmentation 

Cons

• Retrieving data is not always an easy task to learn. There are countless choices. 
• The system appears to lag more the more customizations you make to it.

ERP Software the Correct Fit for Your Small Company?

Choosing the appropriate ERP for your business should begin with an industry-specific strategy. Seek for a system that is customized to meet the demands of your niche market. 

You might also wish to check the system’s hosting configuration. Cloud-based ERP software is the greatest option for tiny businesses. They’re simpler to set up and need less effort.

ERP solutions like the ones which are made with small businesses in mind. These are the kinds of initiatives that can expeditiously simplify platforms and enhance a small business’s growth prospects. 

Conclusion

The choice of ERP system modules for SMEs in 2023 should align with the specific needs, growth plans, budget considerations, and industry requirements of each business. Assessing these factors helps SMEs select an ERP solution that not only addresses their current needs but also supports future scalability and success.While there are many more on the market that might better meet the unique needs of your company, these are some of the most often used examples of ERP systems for small to mid-sized businesses. While there are many more on the market that might better meet the unique needs of your company, these are some of the most often used examples of ERP systems for small to mid-sized businesses.

If you’ve previously discounted the significance of enterprise resource planning, keep in mind that 80% of large and medium-sized companies worldwide utilize ERP systems.