The cost of implementing an enterprise resource planning (ERP) solution can seem daunting to small and medium businesses with many asking the question “Do I really need an ERP system and will it be worth the cost?”.

Improving business performance has a profound effect on the bottom-line which is where having a solid ERP system comes in. So how exactly does an ERP system save you money you may ask? We find out in this post.

News ways to manage and organise data

Everything about your business comes down to data. Information is your most important asset and finding better ways to manage and organise your vital information is essential for the way you do business. With an ERP systems, you will be able to access your data in real time giving you greater control of your operations and empowering you to make decisions from anywhere.

Simplified, realistic accounting

A firm grasp on your finances is essential for cost cutting. With all your financial information pulled into your ERP system you have access to consistent, current data which means nothing slips through the cracks and you won’t have to spend hours reconciling your financials.

Improved inventory and equipment tracking

Ensuring that your products and services are available to customers when they need it is essential to success. Not only does an ERP system bring together sales, inventory and customer data but with it you can also accurately track items and equipment in stock saving you money by preventing over (or under) ordering.

Scalability

Because ERP solutions like Microsoft Dynamics AX and NAV are scalable you can activate certain functions within the system as and when you need them which saves you money in the long run. Your IT department no longer needs to deal with the difficult task of integrating multiple systems and you no longer need to incur those costs.

Increased simplicity

A good ERP system streamlines your business and reduces the complexity your processes for an elegantly designed workflow. With access to everything you need and cutting out anything you don’t you save valuable time and effort across the organisation.

Improved operational efficiency 

From scalability to increased simplicity and everything in between an ERP system is geared towards improving operational efficiency which ultimately improves your financial position because with better control of your resources you can do more with less.