What is the characteristics of an ERP?

If you’re looking to upgrade your business software, you may have heard about ERPs. ERP stands for enterprise resource planning, and it’s basically business management software on steroids. An ERP integrates all your core business processes – think accounting, HR, supply chain management, and more – into a single unified system. This eliminates silos and helps you get the big picture on your business operations.

But not all ERPs are created equal. Different systems have different strengths and weaknesses that can make them a good or bad fit for your specific needs. In this article, we’ll break down the key characteristics of ERPs and sage intacct vs netsuite comparison so you can evaluate which solution is best for your growing organization. We’ll look at things like modularity, customizability, industry specialization, and more.

What Is an ERP?

An enterprise resource planning or ERP system is a software platform that helps businesses effectively manage key business processes. An ERP integrates all your financial data across departments in one place. It handles key accounting functions like accounts payable/receivable, cash management, fixed assets, and more. Using an ERP for finance and accounting helps reduce errors, provides real-time reporting, and ensures compliance with regulations. It gives you visibility into your supply chain so you can optimize inventory levels, streamline purchasing, and improve demand planning.  An ERP also typically includes customer relationship management or CRM functionality. A CRM helps you manage leads, track opportunities, log customer service issues, analyze sales performance, and more.  

Key Characteristics of an ERP System

An Enterprise Resource Planning (ERP) system is business process management software that allows an organization to use a system of integrated applications to manage the business. ERP software typically integrates all business functions into a unified system.

• Integration

A key characteristic of an ERP system is that it integrates various business functions into a single, unified database. This means different departments (finance, HR, operations, etc.) can easily share and access information. With an ERP system, you have a single source of truth for your business data.

• Automation

An ERP automates and streamlines many routine business processes. This can eliminate redundant data entry and increase efficiency. For example, an ERP may automate the process of tracking a customer order through processing, shipping, and invoicing. It can also automate HR functions like onboarding new employees.

• Reporting and Visibility

A good ERP system provides visibility into key performance indicators across your business. It gives you insights into metrics like inventory levels, supply chain efficiency, employee productivity, and financial performance. Managers can use the ERP system to generate reports, analyze trends, and make data-driven decisions.

• Scalability

As your business grows, an ERP system can scale with you. It allows you to add new users, additional software modules, more data storage, and higher levels of system performance. With a scalable ERP solution, the system continues meeting your needs as your business expands.

Modules and Features of a Robust ERP

When evaluating ERP solutions, look for a system that provides the modules and features that best fit your key business needs, with room to grow as your company evolves.

1. Flexibility and Scalability: A good ERP system should be flexible enough to adapt to your business needs as you grow and scale. 
2. Accounting and Finance: Core financial functions are the heart of any ERP. Look for a system with robust general ledger, accounts payable/receivable, budgeting, and reporting capabilities
3. Sales and CRM: An ERP with strong sales force automation and customer relationship management (CRM) features is essential. Key functions should include opportunity management, sales forecasts, contact records, marketing campaigns, and more. 
4. Inventory and Supply Chain Management: Managing inventory and optimizing your supply chain can be a challenge, especially as you scale. Advanced supply chain tools help forecast demand, optimize stock levels, and streamline purchasing.
5. Reporting and Analytics: A robust ERP generates reports and provides analytics tools to help you gain key business insights. 

Sage Intacct vs Netsuite Comparison: How to Choose the Right ERP for Your Business

An enterprise resource planning (ERP) system is business management software that allows an organization to use integrated applications to manage business functions such as accounting, finance, HR, supply chain, and more. ERP systems provide a unified database that ensures all departments can access the same real-time data.

Core Capabilities

Two leading ERP platforms for small to midsize businesses are Sage Intacct and NetSuite. Both offer core financial management features like general ledger, accounts payable/receivable, cash management, and reporting. They also provide additional modules for areas such as:

• Project accounting
• Inventory management
• Purchasing
• Sales force automation
• Customer relationship management

Deployment Options

Sage Intacct and NetSuite are both cloud-based, software-as-a-service (SaaS) solutions, meaning they are hosted by the vendors and accessed via the web. This eliminates the need for businesses to maintain servers or install software. However, NetSuite also offers an on-premise version for companies that prefer to host the system on their own servers.

Ease of Use

Sage Intacct is designed to be user-friendly with an intuitive interface, drag-and-drop features, and built-in productivity tools. NetSuite also focuses on usability but has a more robust set of capabilities, so the platform can seem complex to new users. Both vendors provide training resources and implementation services to help customers get up and running.

You made it! By now, you should have a solid understanding of what an ERP is, its key characteristics, and how it can benefit your business. Implementing an ERP takes time and strategic planning, but the payoff can be huge in terms of operational efficiency. The team at Big Bang has deep expertise in ERP systems like NetSuite. If you’re considering an ERP, check out our website to learn how we can guide you through a successful implementation. With the right partner, making the move to an ERP could take your business to the next level!