ERP Software for Small Business: Grow Smarter & Faster

Breaking news: cloud ERP market predicted to be worth $181 billion by 2032$181 billion by 2032. What’s the point of the surge? To make their processes run more smoothly, businesses all over the world want tools that are smarter and easier to use.    
In this article, we will tell a story based on successful businesses’ experiences and unfold SME ERP solutions comparison to help you pick the best one for your company.   

Learning About ERP Software 

Every business that wants to boost operations and make choices based on data needs to have an ERP solution. With that in mind, let’s dive deeper into the details! 

What Is ERP Software? 

Small business ERP software includes an integrated program suite that streamlines business operations. It integrates the operations of various departments into one central, uniform database so that the business can better monitor key functions, thereby achieving drastic improvements in resource allocation, planning, and process standardization. 

While ERP solutions reduce duplication and errors by easily allowing the flow of data from one department to another, they also offer to make timely insights to enable business decisions or act efficiently. 

Key Components of an ERP System 

ERP systems, including small business ERP solutions, comprise modules targeting specific business functions. Some of the key components typically include: 

• Financial Management: It will deal with logistics, inventory, and vendor relations. 
• Supply Chain Management (SCM): Сovers logistics, inventory, and vendor relations.
• Human Resources (HR): It deals with personnel records, wage calculations, recruitment, and performance assessment.
• Customer Relationship Management (CRM): Due to enhancements in customer relationships and sales support, CRM will form part of integrated ERP-CRM solutions. 
• Manufacturing: It oversees production planning, scheduling, and quality control. 

How ERP Systems Work 

ERP for small businesses consolidates different business processes and provides a centralized management system with advanced reporting, resulting in better decision-making. 

Integration of Business Processes 

In other words, business process integration means enterprise resource planning software for small businesses integrates all the data from the entire organization into a unified and seamless system.  

For example, a sales order entry automatically updates the inventory level, propagates production scheduling, and appears in financial planning. 

Centralized Data Management 

ERP software is based on centralized data management: the work of all departments is managed by the same information, which is available in real-time. This helps reduce discrepancies in comparing duplicate or outdated data, as all the information is structured in a single safe database. 

This minimizes time spent on data gathering and improves reporting accuracy. Centralized data, in turn, gives the leadership full capacity to make informed data-driven decisions based on an integrated perspective of organizational performance for strategic decisions. 

Benefits of ERP for Small Companies 

The general benefits of ERP systems to small businesses include operational simplification, decision-making, scalability, and cost-cutting. Let us now examine each of them in detail.

Streamlining Operations 

By centralizing business processes, small business software ERP enables small organizations to improve their operational efficiency and reduce the manual repetition of work. 

Automation of Daily Tasks 

An ERP system updates the inventory, generates invoices in seconds, and automatically creates and racks the orders, saving a company’s precious time on a daily basis by allowing it to commit to other tasks and lowering human errors. 

Improved Team Effort and Workflow  

ERP systems simplify processes and accelerate tasks, improving teamwork and increasing productivity.   

For example, when the sales department updates an order, the inventory and finance departments can view it and keep the billing precise without having to perform any extra work. This keeps everyone on the same page, which makes departmental tasks faster and easier. 

Enhanced Decision-Making 

An ERP solution for SMBs helps managers track sales, production, and income with simple reports and custom dashboards. This provides managers with the data they need to make decisions. 

Access to Real-Time Data  

Since ERP systems are updated in real-time, teams can act faster upon market demands and make decisions based on the latest data, rather than looking at reports from the previous day. 

Advanced Reporting and Analytics 

The ERP will make it possible to track performance against specified metrics for trending reporting and analytics capability, thereby enabling fact-based decision-making. 

Scalability and Flexibility 

As small businesses grow, ERP systems can expand and adapt to these new needs for long-term support. 

Business Growth Support 

As your company expands, you can quickly add prepared outside-of-business interfaces and link several solutions under one system using an ERP solution. You will thus be able to extend capability and add modules without using a different platform. 

Simple Customization 

Most ERP systems let you design and build workflows to automate your particular processes. This raises productivity and allows you to quickly handle numerous systems as your business grows and requires transformation. 

Cost Savings 

ERP software for small companies offers the same features as several tools — such as marketing, customer relationship management (CRM), and accounting — in a single place. When everything is included in one license, like with Odoo, you can reduce waste and keep track of all the important tasks in one place. 

Operating Cost Reduction 

ERP software for small business reduces operation costs by removing duplicate systems and automation, thus enabling a business to use its resources better. 

Maximizing ROI 

An ERP system can be an excellent investment as it prevents you from handling repetitive tasks like processing client information, sending invoices, and keeping track of inventory.   

Thus, you can think about progress and potential new ideas, which helps you reach your goals. And in order not to repeat the same tasks, a team can also concentrate on what’s crucial for long-term success. 

How to Choose the Right ERP Software for Your Company 

Now that you may have already thought about some ERP models, let’s try to pick the best ERP software for small businesses! To help you make a smart choice, here, we cover some ideas that could be helpful.

Analysis of Business Needs 

Before you look for the best ERP software for small businesses, you need to be sure of what your company needs. By knowing useful things about what drives your daily operations, you will find the best solution for your business.  

Figuring Out the Important Steps  

Make a list of the most important business tasks for your company. These will be the main things that the ERP system should be able to handle without any issues, like: 

• Sales; 
• Inventory management; 
• Customer care. 

If implemented without addressing these essential functions, the ERP will create intricacy where it should simplify your work. 

Setting Clear Objectives 

Clearly define your objectives. Among others, do you want to: 

• Improve operational efficiency?
• Increase sales?
• Improve customer satisfaction?
• Support scalability? 

You can compare clearly defined ERP systems against what best fits the requirements for meeting such objectives. This will align your ERP system with your target and offer actual value instead of being an expensive waste. 

Exploring Features and Functions 

Once your business needs are clear, the next step is to look at the features each ERP solution offers. No two systems are created equal, and it is very important to understand what functionality is critical and what is nice. 

Must-Have Modules 

Basic modules for most businesses will include: 

• CRM; 
• Accounting; 
• Inventory. 

These are core modules that help you manage some of a business’s important functions accurately. When it comes to ERP small business software, these are the bare necessities that all good ERP software should have. 

Nice Features You Would Like to Have 

Along with the basics, you should also think about features that could help your business run better as it grows. The following are some useful features: 

• AI predictive analysis;  
• Customer care; 
• Payroll automation; 
• Custom dashboards to visualize all reports. 

If at first, you may not need these features, as your needs change, they become very useful, giving you flexibility and helping your business grow. 

Top ERP Software Options for Small Businesses 

If we browse through a Quora forum comparing ERP solutions, we’ll find that Odoo and Microsoft’s Dynamics 365 Business Central are two of the most widely used ERP systems for small businesses.

Let’s now dive into their detailed descriptions and analyze the competition. 

Odoo

Odoo is one of the best ERP software for small businesses and medium-sized ones that need affordable and customizable tools. Since it is designed modularly, a company can easily add more applications as it grows. 

Odoo’s Key Features & Benefits: 

• Reasonable Price: Odoo is one of the top ERP systems for SMEs, as it’s not too expensive compared to other ERP solutions. It also comes in both community and enterprise versions.  
• Mobіle–Readiness: Odoo applications are accessible on mobile devices to ease the lives of your users who are always on the go.  
• User-Friendly Interface: By creating an intuitive dashboard and navigation, this feature lowers the learning curve for new users.  
• Project management, accounting and inventory, customer relationship management (CRM), and e-commerce are among the core functions included in the modules.  
• Integrating third-party tools with your current systems is simple and seamless.  
• It is one of the top ERP systems for SMEs since it’s not as costly as other models. Plus, there exist versions for business as well as community. 

Suitable For: small businesses or startups that want an affordable, flexible ERP system whose features can scale up with their growth. 

NetSuite 

Another popular cloud-based ERP solution for small businesses is Oracle NetSuite. It has an integrated platform that neatly combines inventory management, e-commerce, ERP, and CRM. 

NetSuite’s Key Features: 

• Real-Time Reporting and Analytics: Rich financial, sales, and operational insights. Personalized dashboards. 
• Comprehensive Tools come alongside accounting, order management, CRM, and human resource management on a single platform. 
• Integrated E-commerce: This tool integrates e-commerce with the inventory management of product-based businesses. 
• Strong Automation Capability: Automated processes include redundant accounting, billing, and inventory work. 
• Large Partner Network: If there was already a large network of operational partners, it would be easy to integrate and get help after the sale.  

It’s easy to get to from any gadget that can connect to the internet, making it great for a hybrid team or one that works from home. 

Suitable For: NetSuite serves growing companies of all sectors, including retail, manufacturing, and professional services, by managing the business using a single integrated ERP solution.

SAP Business One 

SAP Business One helps small to medium-sized groups of enterprises. It gives powerful ERP functions, which help manage sales, inventory, accounting, and more. 

SAP Business One’s Key Features: 

• Industry-specific customization includes such features in retail, manufacturing, and distribution. 
• Real-time access to data provides data on decision-making insights into performances. 
• Integrated CRM tools mean the system maintains customer relationships in ERP, increasing customer interaction. 
• Financial Management Competency: This simplifies accounting and financial management to enable proper reporting and forecasting. 
• Advanced Analytics and Reporting: Deep analytics provide the ability to find trends and track key performance indicators. 
• Localisation Support: The software supports multiple languages and currencies, making it ideal for any global business. 

Suitable For: a small to medium-sized enterprise that needs these functionalities to implement robust industry-specific ERP. 

Oracle Fusion Cloud ERP 

Oracle Fusion Cloud ERP is a scalable, cloud-based solution with advanced capabilities. It is best suited for organizations seeking AI-driven insights and high-level automation. 

Oracle Fusion Cloud ERP’s Key Features: 

• Artificial Intelligence and Machine Learning: This solution provides predictive analytics for better decision-making with the facility for auto-insights. 
• Fully Automated: This minimizes human errors and automates workflows in the billing and procurement areas related to HR. 
• Powerful Security: High-level security protocols are suitable for enterprise needs when data protection is strict. 
• Customizable Reporting: In-built dashboards and reporting options to keep track of business health. 
• Mobile Accessibility and User-Friendly Interface: Oracle ERP software is accessible on mobile devices, increasing flexibility and friendliness. 
• Continuous Innovation: Oracle is committed to updating the system, which ensures that new features and updated compliance standards continuously accredit users. 
•  

Suitable For: small- and medium-scale business enterprises that require scalability, advanced security, and automation. 

Microsoft Dynamics 365 

Microsoft Dynamics 365 is a fully-fledged ERP and CRM solution that integrates well with other Microsoft products. It is, hence, flexible for any business operating on Microsoft Office. 

Microsoft Dynamics 365’s Key Features: 

• Integration with the Microsoft Ecosystem: It integrates well with Outlook, Teams, and Excel tools. 
• Customizable Modules: The industry-specific modules are delivered from financials and operations to retail and HR. 
• Power BI Data Visualization: This function enables your complete reporting and visualization with Power BI. 
• Advanced AI Capabilities: It uses operations and sales predictive analytics derived from artificial intelligence. 
• The data will be delivered using mobile devices. Thus, team members will be able to access it from anywhere. 
• Easily scaled up with the company and rising needs, scalable architecture makes it among the best ERP systems with CRM integration. 

Suitable For: an organization eager to utilize an ERP with broad enterprise integration into the Microsoft suite of product offerings and deep reporting. 

SYSPRO 

SYSPRO provides comprehensive functionality solutions to the manufacturing and distribution industries through Inventory Management, Production, and Order Processing. 

SYSPRO’s Key Features: 

• Manufacturing and distribution incorporate specialized industry tools, increasing production effectiveness. 
• Inventory optimization: This helps the business optimize inventories, minimize waste, and secure a better profit margin. 
• Intuitive User Interface: It is designed to be user-friendly, reducing the need for team members to train. 
• Mobile-friendly, supporting most of the mobile accesses, and convenient to use on the floor for management. 
• Analytics and Reporting: Analytics provides detailed reporting, resulting in performance tracking with smooth operations. 
• Integration Capabilities: It offers pretty good integrations with many third-party applications for customization.

Suitable For: small–to–mid-sized manufacturing and distribution companies looking for industry-specific-focused ERP solutions for SMBs. 

Infor CloudSuite 

Infor CloudSuite is agile, industry-specific, and cloud-based for manufacturers, healthcare, and services, yet able to scale for growth. 

Infor CloudSuite’s Key Highlights: 

• Global scalability: However, multiple languages and various currencies are supported for any international business. 
• AI and IoT Integrations: Advanced integrations of AI and IoT ensure better productivity. 
• Large Network of Partners: With a large partner network, implementation and continued support is easy. 
• Domain-specific: Modules are pre-configured in various sectors, including hotel, manufacturing, and healthcare. 
• Easy onboarding is made possible by the user-friendly cloud interface, which helps lower downtime through reduced disturbance. 
• Dashboards and real-time analytics allow one to monitor business metrics directly. 

Suitable For: small–to–mid-tier organizations that want a solid cloud-enabled solution with deep industry functionalities.

Top Free ERP Software Providers 

When looking for affordable options, many small businesses turn to cheap ERP software for small business that offers flexibility and robust features at no cost. Among the top providers, Odoo stands out as one of the leading affordable ERP vendors for small businesses. 

Odoo 

Odoo also offers free ERP software for small businesses built on an open-source ERP system that can be easily adapted to suit small businesses and start-ups. Its modular outlook allows a company to add or remove applications capable of endowing one’s needs. 

Odoo’s Key Features: 

• Modular yet flexible: Pick up the required modules, such as CRM, inventory, invoicing, etc. 
• Community Edition: The free version includes the main features, targeting small businesses. 
• Integration Capabilities: It integrates with most third-party tools out of the box. 
• User-Friendly Interface: It is easy to use, even for non-technical people. 

Odoo is a leading example of ERP with built-in CRM, whereby customer relationship management tools and every other key corporate function are built.

Suitable For: Small businesses that want a customized ERP system at a low cost. 

ERPNext 

ERPNext is free and open source, and can be used for industry, retail, healthcare, and more. 

ERPNext’s Key Features: 

• Complete modules for budgeting, inventory, HR, and more.  
• Industry-Specific Customization: Tailored for diverse industries with specific templates. 
• Community Support: With the active open-source community, help and support are easy to seek. 
• Hosting On-site or in the Cloud: You can choose whether you want to host directly on your own computer or in the cloud. 

Suitable For: start-ups and small businesses as it allows them to be agile and make changes particular to their industries. It is by far one of the best budget ERP solutions for companies that intend to rationalize operations inexpensively. 

Dolibarr 

Dolibarr is a free, open-source ERP and CRM solution suitable for small businesses. It is aimed at the enterprise resource planning needs of small enterprises, associations, and self-employed professionals. It also claims to be simple and easy to use. 

Dolibarr’s Key Features: 

• Easily to Install and Setup: No major technical knowledge is required for deployment.  
• Customizable Modules: You may choose modules for sales, invoicing, and human resource management, among others. 
• Mobile-Friendly: Access Dolibarr on mobile devices to increase accessibility. 
• Affordable Extensions: Expand functionalities with affordable plugins from its marketplace. 

Suitable For: freelancers and small companies looking for reasonably priced ERP software for very small businesses.  Said to be among the low-cost ERP providers, it is perfect for companies looking for economy and simplicity.  

Industry-Specific ERP Systems: Manufacturing ERP Solutions 

Odoo 

Odoo’s manufacturing module, as an ERP software for small manufacturing businesses, will help every firm manage its inventories, plan, and quality control. 

Key Features of Odoo for Manufacturing: 

• Manufacturing follows up on work orders, quality control, and line optimization. 
• Inventory Management: Real-time inventories ensure no stockout and no overstocking. 
• Custom Workflows: Adapt Odoo to your way of manufacturing. 

Suitable For: Odoo is one of the best ERP systems for manufacturing SMEs because it is modular and can be changed to fit their needs. 

Macola ERP 

Manufacturing ERP systems, such as Macola ERP, focus on the operation process in distribution and manufacturing and make it more efficient by converting financial and operational data.  

Macola ERP’s Key Features: 

• Inventory control and production help properly forecast needs.  

• Real-time financial information helps one maximize budget and expenses. 

• Workflow automation helps increase output by automating tedious chores.  

Suitable For: Manufacturing and distribution companies looking for an ERP focused on operational efficiency. 

Visual EstiTrack 

Production management ERP solutions like Visual EstiTrack are full-featured ERs created for job shops and manufacturers. This particular solutionprovides the tools to estimate, schedule, and track jobs effectively. 

Visual EstiTrack’s Key Features: 

• Job Tracking and Estimation: It performs appropriate estimates for jobs with real-time tracking. 

• User-Friendly Interface: It makes complicated industrial processes easier to use. 

• Management of resources and schedules for planning and production are sure to work well. 

Suitable For: ERP manufacturing processes in small job shops and manufacturing companies that need to keep track of specific schedules and tracking. 

Future Trends in ERP for Small Companies 

With technological development, ERP systems for small companies are also evolving to suit the dynamic needs of small businesses. Several key trends shaping the future of ERP software involve innovation in how those programs will help the small business enterprise run more efficiently and competitively. 

Integration of Artificial Intelligence 

A notable aspect of the 2024 ERP report is that 88.5% of respondents showed either deployment or intention to deploy artificial intelligence in their respective organizations. Artificial intelligence is integrated into an ERP by adding layers that develop improved decision-making due to the automation of intricate tasks. 

Predictive Analytics 

AI-powered ERP systems can use predictive analytics to look at past data to find patterns that will show up in the future. This lets your business make choices that you can act upon right away. 

Predictive analytics helps businesses stay ahead by letting you see issues like sales trends and predicted demand before they happen. Value-driven ERP offers a function that lets you use data to make better decisions and run businesses more efficiently. 

Automation of Difficult Tasks 

AI also makes it possible to automate more than processes. Indeed, ERP systems powered by AI can perform tasks such as complicated accounting and customer service, and can figure out the best inventory levels on their own. This saves time and cuts down on human error, so small businesses can focus on long-term growth.  

Mobile ERP Applications 

Mobile ERP applications allow business owners and employees to access critical data anywhere. This flexibility will help small business owners manage their businesses from outside the office or remotely, sometimes outside office hours. 

Accessibility on the Go 

Mobile ERP applications allow business owners and employees to access critical data anywhere. This flexibility will help small business owners manage their businesses from outside the office or remotely, sometimes outside office hours. 

Updates in Real Time 

Modern ERP systems prioritize the user experience, knowing that ease-of-use design can actually improve productivity as well as user satisfaction. 

Increased Focus on User Experience  

As mentioned above, there is a welcomed new focus on user experience. Modern ERP systems indeed prioritize user experience as they recognize that an intuitive design can enhance both productivity and user satisfaction. 

Simplified Interfaces 

The ERP sector has moved away from screens that are difficult to read and understand, and toward clean and simple ones. With easier-to-use interfaces, learning takes less time, and even small business teams can learn how to use the software’s full features without extensive training.  

Personalized Dashboards 

Customizable dashboards enable users to personalize their views of the ERP while putting the metrics and tasks most pertinent to them at the forefront. Eventually, this customization increases your productivity by putting key data and tools at your fingertips, making your teams more competent and making decisions faster. 

IoT and ERP Integration 

IoT stands for the ‘Internet of Things,’ a new methodology for collecting and using data within ERP in manufacturing, logistics, and retail. ERP software reviews often highlight how IoT integration is transforming business operations. 

The IoT is a fast-growing market expected to reach $144 billion by 2028, which represents a growth of about 7% a year.  

ERPs now combine IoT with cloud computing, AI, machine learning, and advanced analytics to make factories and distribution centers more intelligent. ERPs with IoT offer companies the following functionalities: 

Real-Time Monitoring 

Thus, IoT devices integrated with an ERP system enable real-time equipment, assets, and process monitoring. A typical small-scale manufacturing company can check machinery health by scheduling proactive maintenance to avoid costly downtimes. 

Improved Data Collection 

IoT integration enhances data collection to feed enterprise resource planning systems with updated and correct information. This needs to enable supply chain management optimization, inventory tracking, and quality checks to ensure the required resource efficiency of small-scale businesses. 

Frequently Asked Questions 

Is ERP Software Affordable for Small Businesses? 

Of course, most of them have flexible pricing in place today. Subscription plans are available, and modular options allow small businesses to pay only for what is required. An ERP’s low-cost or free version should fit most budgets, making it one of the recommended ERPs for small businesses seeking an affordable yet effective solution. 

How Long Does ERP Implementation Take? 

Depending on customization, data migration, and user training needs, ERP solutions for small businesses can take weeks to months to be implemented. Having experienced partners can help speed up the process. 

Is the ERP System Customizable? 

Yes, ERP software helps small businesses by offering adaptable solutions based on specific requirements. It enables companies to match the modules and features to the requirements and workflow. 

What Does Post-Implementation Support Offer? 

Support usually consists of technical updates and training following the launch with most ERP vendors. Select a reputable vendor for improved support to guarantee the quick resolution of issues, thus realizing the full value of the ERP software small business system. 

Conclusion 

An ERP system for small businesses will revolutionize how these businesses operate by smoothing work processes, enabling informed decisions, and facilitating continued growth. The following is a quick rundown to consider for your next steps: 

1. An ERP system is much more than a tool; it streamlines activities, eliminates errors, and provides insights for growth. 
2. Find an ERP that works for your business, integrates into your industry, and is priced right. 
3. Discuss how your business can grow with fewer problems, get advice, and explore options. 
4. An ERP system helps small businesses make better decisions and stay ahead of the competition. Take the first step to make it easy! 

Ivan Nordgaimer CBDO, Managing Partner at SmartTek Solutions