Right time to start using Geosoft ERP

Right time to start using Geosoft ERPNext

  • ERP's are too expensive
  • Does not have time and resources to invest in ERP
  • Wait for better economy
  • Employees have a lot of other works to do
  • Users are not tech savvy
  • We are too small for an ERP
  • Accountant does not want to switch from existing system

There are too many reasons come in mind to justify why you should not invest in an ERP right now. All reasons seem valid, and will push you towards waiting for using an ERP. But the fact is, at any point of time, there will be several such reasons to delay the decision. Then when is the right time to implement an ERP in your organization?

The truth is, there is no such right time to start using an ERP system. There are hundreds of reasons, why using ERP right now makes more sense than waiting. The most important factor in the decision making should be its cost vs benefits. And in reality, benefits of an ERP always far outweigh its costs (including the cost of time and efforts).

Costs

“ERPs are too expensive”, it’s a myth now. There are many modern low cost and open source ERPs which are very much competent against the established old ERPs. And most of these ERPs are available in SAAS model; hence initial investment is also very low. In terms of implementation time and resources, some of these modern ERPs are also very user-friendly. And it takes very less time to kick start the ERP in your organization, mostly within a few days / weeks. Nowadays, most of the users are used to the internet (Facebook and email), due to the availability of low-cost smartphones. And modern ERPs have very much similar kind of user experience which reduces training and adaptability time drastically.

An accounting system is a must have for any business. Many times, they also use several other systems like Spreadsheets, CRM, Mass Mailing System, CMS, Inventory Manage System and Payroll etc. to manage their daily operations. Accumulated cost of all those software becomes far more than a single ERP system. And still, they need to do manual work in spreadsheets to get consolidated data. An ERP system gives you all the facilities less than one roof, hence switching to an ERP should be an obvious choice.

Benefits

There are thousands of benefits of using an ERP system, but here are few of them.

  1. Time is money

First thing first, we all know that nothing is precious than time. And an ERP system saves a lot of time helping to take important decisions in time, manage your business data in one place, in an efficient and transparent way.

  1. Manage sales effectively

Sales are the key of any businesses. A good ERP system helps you to manage your leads and opportunities in an organized way. You can manage all the communications in one place and in time, track all the quotations sent to them, which leads to better conversion.

  1. Good Customer Service

Best customer service is another thing which always plays a vital role in your success. Whether it is customer acquisition, after-sales service, in-time delivery or AMC renewal, an ERP gives you the power to better communicate by notifying you in time.

  1. Accounting

Collecting payments in time is very much important, as it directly affects the cash flow of your business. Any good ERP comes with a strong accounting backbone, which helps you to manage your invoicing, payments, tax filing etc very efficiently. It also gives you the freedom to check all the important accounting reports anytime, without depending on an accountant.

  1. MIS reports

One of the most important benefits of an ERP, you can access all MIS and trends reports anytime. It provides you all the important information like most profitable items, top customers, inventory position, average delivery time, the expenses and incomes, production lineup and productivity of your employees. The ability to access these reports helps you to make the better decisions without any delay, which leads to huge financial benefits in the long term. Without an ERP, getting all those data from different sources becomes a cumbersome process and time consuming.

  1. Inventory Management

If you deal with inventory/stock, it is very important to know the stock positions at any point of time. It helps to plan the manufacturing, purchasing and delivery scheduling at the right time.

  1. Adopting best industry practices

An ERP system forces you to adopt the best practices of the industry, which gives you huge benefits over the long terms.

Most of the above benefits are applicable to any kind of businesses and surely outweigh the costs of an ERP system. If you are a small business owner and thinking that you do not have that much data/information to use an ERP. You must remember, a small business must be faster and sharper than the competition. You need to do smart work than hard work and need to change your business strategy more often depending on your situation. And an ERP system helps you to take the decisions in the right time.

To conclude I would say, the cost of waiting time is much more than initial costs of an ERP. You should start using an ERP as soon as possible. If you don’t have the budget, use one user free account of Geosoft ERP, but using an ERP is a must in the modern era. Start the process of selecting an ERP right now, but don’t get into analysis paralysis mode. Here are some of the criteria you should consider while selecting any ERP, SAAS vs on premise, open source vs proprietary, simplicity, mobile friendly, customization and future updates.

BENEFITS OF ERP SYSTEM

BENEFITS OF ERP SYSTEM

- For Growth of your Business

 Every business has its own set of processes, products and services that makes it unique. However, most businesses face similar operational problems as they grow. Here are a few such issues that ERP such as ERPNext can help in resolving for your business and contribute in its growth and progress. The present times are characterized by change and change is inevitable when it comes to business operations – be it the change in business communication methods or change in the way technology plays a role in everyday operations. Change has made several businesses fail to adapt and reach their goals. In times such as these, Implementation of Enterprise Resource Planning (ERP) in an organization can be immensely conductive in optimizing business operations to improve efficiency and boost growth.

What is the significance of ERP system? Or what are the Benefits of ERP System in an Organization? If such questions are restricting you from implementing an ERP for your business then following list will help you understand the benefits of ERP.

1. Better Information management through business automation

Performance metrics and Measurements are vital in evaluating business progress and also aid in setting up future goals. However, as a business grows, it will become increasingly difficult to manually calculate sales margin, profit ratios and other such metrics. ERP bring a degree of automation to the business by allowing employees across the organization to access shared data without the need to maintain manual records. This also enables generation of synchronized reports on key business metrics. Immediate access to data is significant to take timely decisions.

2. Improved Workflow

Workflow is improved all processes gets streamlined and access is simplified through user-friendly interfaces, employees are better able to acquire the relevant information that is necessary to do their job. Whether it's extracting custom or standard reports or formulating a report for presentation, ERP software makes each employee's job easier, which leads to increased productivity.

3. Streamlining of processes

The principle objective of any ERP is to integrate all the functions of a business into a unified platform. Many businesses are still stuck in the unenviable position where their data is stored in multiple locations and systems. By centralizing this data and streamlining the means of accessing (as well as adding to) data, ERP contributes to greater efficiency within a business model.

4. Modular yet integrated approach

ERP software integrates various processes that are essential to run a business enterprise into one single database. These processes include inventory and order management, accounting, human resources, customer relationship management (CRM), among others. By streamlining all the processes into one effective system, ERP provides your business with a shared database that supports multiple functions across your enterprise.

5. Simplicity in Business accounting

A growing business will struggle with its accounting procedures if they are still either manual or if the sales, accounting, finance and HR departments do not have access to shared data. Financial reporting and everyday accounting will particularly require a lot of time and effort which can be easily reduced with the use of ERP. Using ERP to integrate and analyze financial data will improve employee productivity and reduce delays considerably.

6. Transparency throughout Organization

For any business, information and data are extremely essential business assets. Data security and integrity is extremely important to ensure that strategic business information is processed and accessed by the right people. With an ERP, while the data is maintained safely, access of data can also be given only to people who have the authority. Also, strategic information can be maintained at one place while updates to such information can be done by one or more authorized people. Thus Role based system makes ERP transparent as well as secure.

7. Elimination of redundancies

One of the biggest problems with a non-centralized data management system is the continued occurrence of redundant data. Redundant data is simply data that has been repeated twice, which can lead to inconsistencies and confusion down the line. It's a common problem with businesses that have multiple data storage locations and is something which can be rectified with the use of ERP.

8. Mingled operational, financial and strategic insight

ERP systems tie data and processes together so you always have a 360-degree view. Whether you’re viewing costing amounts on a sales order, pulling up a customer’s record and seeing their sales interactions and orders/shipments side-by-side, or forecasting sales using historical sales orders and production data, ERP gives you the “big picture”.

9. Better customer satisfaction

Keeping your customers satisfied while managing your sales and inventory efficiently can be a herculean task if you have your customer and inventory data housed on different platforms. There could be times when you will have to report product related information to your customer and if you lack updated inventory data, this could spell trouble. ERP helps in maintaining up-to-date information and will also facilitate real-time updating of all data. This will help customer representative’s access accurate, updated data and deal with your customers efficiently.

10. High security without added barriers for your employees

A good ERP makes it easy for staff to manage common processes like order entry, stock counts, shipping, and receiving. But while off the shelf software often gives your staff full access to your sensitive accounting and payroll records, ERP systems allow you to restrict employees’ accounts only to the processes that are relevant to their roles.

This type of role-based security means that you can extend access to all your employees, while keeping their permissions locked down so they can only access what they need to do their jobs.