As your business grows, your software needs grow with it. At one time, when your business was small, you might have survived using a spreadsheet for your accounting. Over time you might have moved on to basic accounting software like QuickBooks, but ultimately, even that may not be enough as a business develops, staff population grows and your business model becomes more complex. When that happens, you might be ready for enterprise resource planning (ERP) software.
Is your business ready for ERP? The following are 5 signs that may indicate you are ready:
1. More employees than management can handle – When you have a small business, everyone knows everyone, and it is pretty easy to keep track of what each employee is doing. But as a business grows, it becomes difficult to keep up with all employee activities, and when it comes to money, not being able to keep track of where it goes and who has their hands on it can be a dangerous thing.
2. Current operations are not scalable – Ideally, it would be nice to scale whatever you are currently doing as your business grows. In some cases, that simply is not possible. If your software cannot meet the demands of a larger business, no amount of workarounds or add-ons will be sufficient.
3. Accountability – Sometimes information may be the key driving force. You may be accountable to a board of directors, regulatory authorities, government agencies and others who all expect detailed reporting of your financial dealings. You might want to do more than hand them a dressed-up spreadsheet.
4. Reactive, not Proactive – While a basic accounting system may give you decent reports that let you peer into the past and look at your business growth and trends, it takes a full ERP solution to give you insight into the future. You need to see where your business is headed and how you can steer it in the direction you need to go. ERP can help you find ways to make your business more profitable.
5. Goodbye Time – If you no longer remember what it is like to have free time, you might be ready for ERP. With a few people in an organization, a spreadsheet or small accounting software might not take long, but when numerous hands are involved, it can become quite an exercise passing all of that information around and ensuring it remains accurate. Time is something you cannot afford to waste.
Are you ready? Only you can truly answer that, but the aforementioned signs are very good indicators that you might be. With the right ERP solution, you can be well on your way to new levels of profitability and save time and money as your business expands.