From Accounting Software to ERP Solutions - 7 Signs You're Ready

Before sharing with you these 7 signs that will help you determine if your company is ready to move to an ERP solution, it will probably be helpful to explain the difference between accounting software and ERP systems.

The two terms are often used interchangeably, I've been guilty of that myself. Accounting software 'only' takes care of the financial part of the company: Ledger, Accounts Payables and Accounts Receivables, and sometime Payroll. it does not give you the capability to look after the end to end operations of the company.

 

ERP (Enterprise Resource Planning), as the name indicates, integrates all the functional areas in the organization: production, logistics, accounting, sales and human resources in a single package,which also includes accounting.

Here are 7 signs your company may be ready to move to an ERP solution:

 

 

1. Lack of accurate information on your company's performance: you have a hard time capturing exact figures, or you're receiving mixed data on a range of company financial indicators.
2. Rapid Growth: If you're enjoying growth in your production processes and/or work force, or have opened new locations, you may need to a more integrated view into your operations.
3. Inventory and production management issues: you may increasingly see issues between your sales department and sales order processing and inventory management.
4. Duplication of data: you probably have several departments such as finance and HR that maintain duplicate records.
5. Delayed data reports: you're not receiving the information you need in a timely fashion, which causes you to miss important factors.
6. Little ability to plan: your company's forecasts rely on conventional methods for future projections but do not have the full picture of all your operations.
7. Software obsolence: your current accounting software is not giving you the tools that you need and is now preventing your company from mapping its growth stategy.

An ERP implementation is a strategic investment in any organization that results in quantifiable benefits: increased productivity, reduced operating costs, improved information flow to name a few. See our previous article on How to Create a Need Analysis to help you evaluate your situation