What is an enterprise resource planning (ERP) system? And why should corporations take advantage of it?

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Today, small and medium-sized businesses (SMEs) confront many of the same challenges as major corporations. Among them is the planning and management of their resources. Small and medium-sized businesses confront comparable problems but have fewer resources to address them.

As with their larger counterparts, small firms must:

  • Maintain accounts to keep track of their sales and purchases.
  • Prepare their tax returns.
  • They must compensate their staff.
  • Maintain delivery schedules that adhere to agreed-upon deadlines.
  • Provide high-quality products and services.
  • Maintain communication with consumers and respond to their inquiries.

Large organizations invest millions of dollars on complex systems such as SAP. SAP and comparable systems are capable of meeting these major organizations’ demands to consolidate their multi-country, multi-company, multi-currency, worldwide businesses into a single platform. This has aided them in achieving data/record consolidation in critical operations such as accounting, taxation, payroll, reporting, and supply chain management, to mention a few.

In comparison to major companies, SMEs were largely excluded from the first wave of the digital revolution (1995-2015). The primary reason they are left out is that they lack the financial resources necessary to license, employ programmers, and adapt such software to meet their specific needs. SAP-based systems have historically been off-limits to the majority of SMEs. These systems require a CAPEX or OPEX budget of at least $100k (yes, one hundred thousand dollars) and above. Even with such companies’ cloud solutions (Software as a Service, SAAS), there is no simple Do It Yourself (DIY) project that customers can feel secure about.

Thus, small firms continue to struggle with the organization until now. They frequently utilize a combination of programs and technologies to handle their day-to-day record keeping, including spreadsheets, accounting software, and web-based CRMs. As a result, they must access several systems in order to comprehend clients’ master data, sales, cash flows, and profitability. The data is stored in many silos. It becomes more difficult to integrate data in order to obtain meaningful insights or alerts. As a result, SMEs become reactive rather than proactive in their daily operations. With such a restricted style of functioning, development opportunities are limited.

ERPNext solves many critical issues that SMEs have while managing their resources:

  • Affordability: It is a Free and Open Source Software that may be downloaded and installed without charge.
  • Completeness: All required modules are present. View the whole list.
  • Customization: Adding fields and features is simple.
  • Efficiency: Relatively few computing resources are required (cheaper to host and manage).
  • Wholesomeness: A single system and database that enables concurrent recording of transactions and data extraction by numerous users.

What exactly is ERPNext?

ERPNext is a comprehensive company management solution that enables SMEs to centralize all of their business activities. ERPNext enables SMEs to make educated, fact-based, and fast choices in order to stay ahead of the competition. It acts as the backbone of a business, providing it with strength, transparency, and control as it grows.

ERPNext will assist you in the following ways:

  • Maintain a record of all invoices and payments.
  • Determine the number of a certain product that is in stock.
  • Determine and monitor your critical performance indicators (KPIs).
  • Determine the status of open client inquiries.
  • Payroll administration for employees.
  • Assign tasks and monitor their completion.
  • Keep track of all your customers, suppliers, and contacts in a database.
  • Quotes should be prepared.
  • Maintain a record of your budgets and expenditures.
  • Calculate the effective selling price based on the real costs of raw materials, machinery, and labor.
  • Receive notifications about scheduled maintenance.
  • Create and publish your website.
  • And a whole deal more.

What Else Can ERPNext Help My Business?

Every enterprise possesses its own collection of processes, products, and services, making it one of a kind. Unfortunately, the majority of businesses meet similar operational challenges over time. ERPNext is an Enterprise Resource Planning (ERP) system that may assist in dealing with these challenges. The following list describes some of the benefits your business may gain by using ERPNext.

Improved Business Management via Business Automation

Performance measurements and metrics are essential in analyzing business progress as well as assisting in establishing future targets. However, as the enterprise grows, it becomes more difficult to determine sales margin, profit ratios, and other similar metrics. ERPNext introduces a level of automation to the company by enabling personnel throughout the organization to obtain access to shared data without necessarily keeping manual records. It also allows the creation of synchronized reports on essential business metrics. Instant access to data is essential to make decisions in good time.

Improved Workflow

ERPNext has a user-friendly interface resulting in improved workflow, streamlining of processes, and simplification of access. End users obtain the relevant information that they need to complete their tasks with greater ease. Regardless of whether the task is extracting a custom report or coming up with a report for presentation, ERPNext simplifies the tasks for the end-users resulting in increased productivity.

Streamlining Processes

The core aim of ERPNext is to integrate all processes of the organization into a unified platform. Several companies are in the unfortunate position of having their data stored in several locations and systems. Both centralizing the data and streamlining the methods of accessing it allow ERPNext to offer the company a shared database that can handle several functions.

Simplicity in Business Accounting

A developing company will find difficulty carrying out accounting processes if they are still using manual bookkeeping or the various departments such as sales, human resources, finance, and accounting lack access to share data. Day-to-day accounting and financial reporting will especially need plenty of time and effort, which may be easily minimized by using ERPNext. Utilizing ERPNext in integrating and examining financial data shall boost staff productivity and significantly cut down on delays.

Transparency across the Company

Information and data are critical business assets to any company. Data security and integrity are essential to ensure that strategic business information is accessed and utilized by authorized personnel. ERPNext ensures data is secure and that its access is limited to authorized personnel. Giving different people various roles on the ERPNext system based on their responsibilities makes it possible to ensure that transparency is maintained.

Removal of redundancies

A major challenge for non-centralized data management systems is the recurring occurrence of redundant data. Redundant data refers to data that is repeated more than once, resulting in inconsistencies and confusion in the future. Data redundancy is a common issue, especially with organizations that possess several data storage areas. The ERPNext system is capable of resolving data redundancy issues in any organization.

Why Choose Pegas

We would love to help your business become more productive and solve all of your company’s information technology needs. Give us a call at (207) 835-4053 to get started today.

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