ERP for Small Business

Diane Harvey
Updated on

Table of Contents

So, what is ERP for small business? How does it work? And how can it help you grow your company? We’ll answer all those questions here so that you get the best ERP experience possible!

ERP systems are a great way to help your small business grow. They’re also super easy to use and can be tailored to your specific needs. Here’s what you need to know about ERP for small business, including why they’re a great idea for your business!

What is ERP for small business?

ERP stands for “Enterprise Resource Planning” and it’s a business software system that helps you manage your finances, inventory, sales, and other key aspects of running a business.

A common misbelief about ERPs is that they are for large-scale businesses only. ERPs were first developed to meet the needs of large-scale enterprises — like the name suggests — but ERPs like SAP Business One, can help businesses, large and small alike, integrate all of their business processes and data into one place.

No matter how big or small your business is, an ERP solution can help streamline production and cut costs by providing real-time information about what’s going on across your organization.

ERP systems are used by manufacturers, retailers and service businesses alike to manage inventory and financials—but there are differences in how each type of business uses their ERP system.

Manufacturers use ERP systems to track materials, production schedules and employee time sheets. Retailers use ERP systems to track customer orders and inventory levels. Service companies use ERP systems to manage employee time sheets, client information and billing rates.

ERP systems for small business usually have a basic set of features that include accounting, inventory management, purchasing, sales order entry and reporting capabilities. Some larger companies may need more sophisticated features such as customer relationship management (CRM) tools or advanced manufacturing capabilities.

What does ERP do for small business?

The answer to this question is “a lot.” ERP software is a system used to automate business processes. It can help you:

Track Inventory, so you know what you have in stock and when it needs to be ordered or restocked. You can also track orders from start to finish. This will help you stay ahead of demand and avoid running out of stock mid-order. This will also help with forecasting and planning for future demand.

Send Invoices and Automate Payments, so it’s easier for both you and your customers to track their spending. If a customer pays late or doesn’t pay at all, the software will send reminders until they do pay up. You can also set up payment plans or other payment options that make it easy for clients to pay their bills on time, every time!

Print Packing Slips for shipping purposes, which will help keep track of what goes where and when it should arrive at its destination.

Generate Reports with Financial Information, such as profit and loss statements (P&Ls) and balance sheets (BS). This helps you make informed decisions about streamlining costs, improving profitability and growing your business. It also gives you a sense of whether your efforts are working to bring in more revenue or if they are costing the company money without producing results.

Manage Customers and Suppliers, so, you know who your best customers are, how much they spend with your company and how often they buy from you.

Provide Customer Support through the Web – so your customers can access information about your business and make purchases from their smartphones or computers at home.

Improve Business Planning and Decision Making, so, you can make informed decisions about how to grow your business, which products to sell and where you should locate new outlets for them.

ERP is an integrated system that allows businesses to manage all aspects of their operations from one place.

It can integrate with other systems, databases, or applications to streamline workflows, increase productivity and efficiency, improve communications between departments, reduce costs, and create better customer relationships through increased transparency into business activities.

ERP systems can bring together all of your accounting functions in one place so that you can see how everything fits together in real time instead of piecing it all together at the end of each month or quarter when it’s too late to act on any problems that might arise if things aren’t running smoothly.

It’s worth remembering that ERP systems are not just for big companies. They’re also for small businesses that want to streamline their operations using technology rather than just manual methods like spreadsheets or paper files.

Why do small businesses need ERP?

ERP is a powerful tool for any business. But why do small businesses need ERP?

Here are four reasons:

It can help you become more efficient.

ERP software can help you streamline your processes and eliminate manual work, which means you’ll get tasks done faster and with less effort on your part. That frees up time that you can use to grow your business or take advantage of opportunities that open up in the future.

ERP can help you prepare to grow your business.

As a small business, it’s likely that your company is still growing and changing. An ERP system will allow you to easily adapt as your business grows and changes by making it easy for employees to enter information into the system.

For example, if your company expands its product line or opens new locations, the software will allow employees at those locations to add products and locations without having to wait for someone in headquarters to update the information in the system.

It also helps you keep track of your finances and ensure that you’re always running efficiently — making any expansion easier than ever before!

So, if you’re planning on expanding, then ERP software will be ready for the task when the time comes. You won’t have to go through the hassle of upgrading or replacing systems when it’s time for expansion — they’ll already be there waiting for you when you’re ready.

ERP can help you automate key functions

Automating time-consuming tasks allows you to focus on growing your business instead of managing routine operations manually or with spreadsheets or other tools that don’t integrate information across departments or provide visibility into key metrics like inventory, turnover rate or operating expenses per employee per hour worked

Automating key functions of your business so that they run smoothly without requiring manual intervention means fewer errors, which means fewer problems requiring employee attention, which means less stress on management as well as employees (and less wasted time).

ERP can improve visibility of your business

ERP systems give you a single source of truth when it comes to data about your company — no matter where it lives or who entered it originally. This means that anyone can access up-to-date information about inventory levels or sales numbers.

This is particularly important for small businesses that have multiple locations or divisions. Without ERP, each location or division may have its own system and its own set of data. That makes it difficult to know whether one division is performing better than another, or if there are any areas where improvements could be made across the board.

ERP systems also make it easy for managers at different levels in an organization to see what’s going on with their business. For example, if I’m the CEO and want to know how many widgets we sold last month, all I need to do is log into my ERP software and look at the widget sales report — no manual work required.

How much does ERP cost for a small business?

The cost of ERP software for small businesses will vary depending on the size and needs of your business. ERP software is more affordable than you might think: many vendors offer free trials or other ways to evaluate their products at no cost. Additionally, some vendors will customize their software specifically for your company’s needs, which could lower or higher implementation costs significantly.

The cost of ERP software varies greatly depending on the size and complexity of your business. For instance, a small restaurant can use a less expensive system than a large manufacturing company. However, there are many factors that go into determining how much an ERP for small business costs, such as:

Product type: Some systems are designed specifically for retailers while others focus on manufacturing companies. If you need a solution that caters to both types of businesses, you may end up paying more than if you selected just one type of product.

Number of users: The number of people who will be using the system has an impact on price because larger organizations require more licenses than smaller ones do. You should also consider whether the licenses will be purchased individually or in bundles (which usually save money).

SaaS vs on-premise: Software as a service (SaaS) is hosted by an outside provider and accessed via the Internet or mobile apps. This means that there is no need for IT support or maintenance costs since it’s all handled by the vendor. this option is a popular choice when selecting an ERP for small business.

On-premise means the software is installed directly on your computer(s). This requires some technical expertise with your IT department in order to install, configure, and maintain the system over time.

ERP for small business can help you become more efficient and prepare to grow your business.

ERP software for small business can help you become more efficient and prepare to grow your business. ERP systems can help you automate key functions, improve visibility and accommodate business growth by integrating data from multiple processes, including financials and customer relationship management (CRM).

In addition, the adoption of cloud-based solutions has made it easier than ever for small businesses to access the same technology that big companies use — making ERP accessible to businesses both large and small. However, while this technology is increasingly available to all types of businesses, it’s important to note that ERP systems are complex and may require some investment upfront.


ERP is a great tool for any small business but ERP for small business has the potential to help you become more efficient and prepare yourself for growth.

We’ve highlighted some of the key benefits of ERP for small business, but there are many others as well. If this sounds like something that could benefit your business, we recommend doing more research into which system would be right for you.

Do you have any experience with ERP for small business? How has it been for your business so far? Let us know in the comments or share any additional insight you might have.

What is ERP for Small Business

Follow us on LinkedIn to stay ahead with industry trends and SAP news! Join our vibrant professional community for invaluable insights into the ever-evolving worlds of business and technology. Don’t miss exclusive content, thought leadership articles, and thrilling updates. Connect with us on LinkedIn today and enhance your industry expertise!


Get a free system audit

Provide your contact details and one of our experts will get in touch to arrange your free system audit and health check.

Let's talk business

Provide your contact details and one of our team will be in touch to arrange a chat with one of our industry experts.