How an ERP system helps to improve business processes

An ERP system is a great multi-functional tool that can improve your entire business.

What is an ERP system?

Before you can understand how ERP can improve your business, you need to understand exactly what ERP is. ERP stands for Enterprise Resource Planning, and at its most basic level, ERP is software that connects and integrates all the different aspects of your business, allows you to streamline processes, and share accurate information with the entire company.

The central feature of all ERP systems is a common database that supports multiple functions and can be used by every department in your organization. In real-world terms, this means that employees across the organization can work with the same set of accurate data and extract the relevant information from the system that is needed to work more efficiently and effectively. ERPs eliminate the possibility of entering the same data multiple times in multiple systems, and provide a single source of truth for your organization and allow information to flow more freely between departments.

With all of your various business functions integrated with ERP, you can better manage your business as a whole, streamline cross-departmental collaboration, and get orders and access to your customers faster.

1. The impact of the ERP system on accountants

One of the biggest advantages of ERP is that it is a fully integrated system that allows you to manage your entire operation, including accounting, from a single system. Using one system simplifies accounting and saves time and money by eliminating the need for cross-referencing and re-entering the same data into multiple systems and spreadsheets.
The fully integrated system improves the accuracy of your accounting and financial reports by eliminating loading errors, input errors and potential synchronization errors, and allows you to complete these reports faster – getting you financial information faster, allowing you to make better, more informed financial decisions.

2. Project management

At its core, ERP is a project and priority management system. A good ERP system will give you all the tools you need to plan and track the progress of projects. With the help of ERP, you will go beyond the interactive whiteboard and move to a more efficient and effective project management system.
ERPs allow you to effectively manage all the steps that need to be completed to get the job done on time. Milestone management provides a high-level view of the actions that must be taken to complete the work. At every stage, you'll know what task needs to be done and when, its completion and the specific stage of any particular work you're doing in your business, all in real-time. Having an ERP means that you will always have full visibility of your entire enterprise, allowing you to better manage and control all operations.

3. Sales and customer relationship management (CRM)

Customer satisfaction is the most important thing you can do to ensure repeat sales. If your customers like what you do, they are more likely to stay loyal and recommend you to other people. Even if your customers will never directly interact with the ERP system, it is a vital tool for improving customer service. As your ERP system helps you simplify and make your business more efficient, you'll be able to offer fairer and more consistent offers, provide a more consistent product, improve delivery standards, and increase customer service response times.

4. Inventory management

A single inventory management system cannot effectively optimize your inventory if your inventory management system is not integrated with the rest of your organization. This is where ERP comes in. An ERP system integrates inventory management with the rest of your business, simplifying inventory tracking across your organization. An ERP system gives your employees instant access to a centralized inventory database that is updated in real time.

This allows you to know exactly what you can or cannot do, what raw materials you actually have, etc.

Accurate inventory management will also help you improve overall efficiency. Employees can spend their time on other tasks instead of, for example, trying to find one specific item. With an ERP system, you can automatically track the inventory you use for each job, which, for example, allows you to plan production better because you know exactly how much raw material you have and what you need to complete work ERP simplifies the management of your inventory, making your work more efficient