Enterprise resource planning systems (ERP) often have a few misconceptions regarding cost and what size businesses can utilize it properly, especially when it comes to cloud-based ERP. Many small businesses, especially, believe that they are too small to consider a dedicated ERP system setup like Microsoft Dynamics 365. However, the beauty of ERP is that it is scalable for your business for both scope and affordability.
Even better, and most importantly, having an ERP solution for your business can create a more efficient and effective cash flow. As any business owner knows, an effective cash flow is crucial to the success of the business. Here’s how an ERP system helps improve small business (or any size business) cash flow.
Late Purchase Order Reporting
If orders aren’t leaving your warehouse due to partial fulfillment, you can instantly find out what isn’t shipping with late purchase order reports. Knowing this allows you to follow up with the warehouse, your supplier, and the customer. Thus, you’re able to constantly stay on top of the situation with ease and improve both your customer service and your cash flow.
Purchasing and Planning Reports
Most of your business’s capital is undoubtedly tied up in inventory. With purchasing and planning reports, you know what you need to restock, what you have too much of, and when is the best time to restock. With this efficient planning for inventory, you can wisely spend money on what stock you need without accidentally creating a surplus.
An ERP system does more than integrate your data; it helps automate your processes. If you automate the processes you already do manually, how much time could you save? And with that saved time, what other tasks could be done instead?
Keep Up with Overdue Invoices
Thanks to an integrated ERP system, it’s easy to see which invoices are outstanding. Keeping on top of overdue invoices indubitably keeps the cash flow in the black.
You can easily access instant, accurate, real-time reports on your business and its cash flow with ERP. With these reports, you can obtain data on specific transactions, patterns, and overall fluctuations of your cash flow. These instant reports can also show snapshots of your business at this time as well as fluctuations of the cash flow on a daily, weekly, quarterly, or annual timeline. There’s no better way to understand and take control of your cash flow than with these integrated reports.
Knowing and understanding your business’s cash flow is just as important for the small business as it is the multinational conglomerate corporation. Installing an ERP system is the most efficient way to help a small business do just that. If you’ve delayed purchasing ERP software because of the cost or because you think your business is too small to need it, consider consulting with Sikich, a certified Microsoft partner with considerable expertise in ERP installs for small businesses. We’ll help you find the best ERP solution for your business and your budget.