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Why Small Manufacturing Businesses Need More Than an Accounting Software?

Why Small Manufacturing Businesses Need More Than an Accounting Software?

Here’s what you need to know

6 min read…

If you are a SMB manufacturing unit producing the products you sell, you need more than just an accounting software! – Our business strategist Emily Bronte says so…
Have you felt during managing business processes as though you were spinning plates while riding a unicycle especially when you are hopping between departments just to keep everything in your business on track?

Many successful businesses use more than just an accounting software to manage their everyday business processes. Like most of them use an ERP software for optimum results! So, we have put together a beginner’s read on why you must invest in an ERP. Savour your favorite cup of beverage while we take you through a 6-minute must-read blog!

You’re never too small for an Enterprise Resource Planning

Since every business in today’s landscape needs to grow rapidly, no business is too small for an ERP solution.

ERP for small manufacturers lets you operate like an enterprise-scale business with increased clarity by streamlining your everyday business processes. In fact, you can transform various facets of your business and overcome challenges involved in business growth.

As the business expands, it becomes time-consuming and difficult to process a larger volume of data. Business processes become much more tedious, especially when you have to input everyday sales and purchase orders, update inventory, manual stock checks, billing and keeping track of all interactions.

Your ERP solution can automate these manual processes, allowing more company time for sales and business development instead of administrative tasks. Besides, ERP software allows synchronous workflow from inquiry, invoice to payment.

Your present process is incompetent? You need an ERP software

You’re not alone if you’re struggling to get your apps to collaborate with internal employees. And if you’re losing track of all those spreadsheets, such commonly faced challenges are one of the main reasons to upgrade to an ERP system. There are several ERP software advantages every manufacturer must know! An ERP software’s flagship offering over an accounting software is its ability to integrate functions seamlessly. You could easily combine disparate operations in a single, centralized workspace. This eliminates most redundant processes and the risk of data entry errors.

Distinct differences between ERP and accounting software

Recent years have brought a sea of changes in the way business management is evolving. Now think of an ERP solution as a set of Lego with several pieces that could fit together. The accounting module is just a piece from the set of Lego. An ERP which is far from an accounting software covers various facets such as finance, sales, project management into one single tool, that helps all businesses manage all types of operations.

Take for an example, the rich activity in an ERP’s CRM module gives you the complete visibility from an opportunity to a customer.

An accounting software does not have manufacturing management capability, while an ERP provides manufacturing management that incorporates BOM, Production Planning etc. Likewise, there are several modules such as MRP, Warehouse, Purchase and Sales that are seamlessly served by an ERP solution but not by an accounting software. Look below:

Modules Accounting Software ERP software
ERP software Yes Yes
Costing Yes Yes
Inventory Yes Yes
Warehouse No Yes
Purchase No Yes
Sales No Yes
CRM No Yes
Service No Yes
Production No Yes
MRP No Yes
Quality No Yes

Who uses an ERP?

The shortest answer: Everyone who strives to achieve business efficiency!

In the modern-day business scenario, we rely on things being well-connected. The price and wisdom of business applications in cloud are worth considering letting your manufacturing business progress at faster pace. Companies have come to acknowledge the importance of having a cohesive hub for their entire business information. The entire business being seamlessly connected, allows employees to share and use data more productively and in a well synchronized way!

erp software for manufacturing company

If you are a manufacturer seeking for a reliable, end-to-end ERP software, OptiProERP is a perfect choice for you. It manages every operation – from sales, purchase, accounts, procurement, dispatch, production, Quality Control and other part of supply chain in one system.

Where to go from here?

If you are in an exploratory phase of choosing the small business software, contact us! We have a knowledgeable team of ERP solution advisors to answer queries you might have! The best part? Our pre-sales consultations are free of charge for you!