4 Reasons to upgrade your Basic Accounting software to an ERP Solution

4 Reason to upgrade to an erp solution cover image

Well, here at Triumph, we could give you 36 reasons why you should upgrade your accounting software to an ERP solution. But for today let’s stick to 4 Major ones that can have a tremendous impact on your business within the next decade.

Imagine you have an incredible car you put your time, effort, and sweat into building, but it runs on an older engine that guzzles fuel and after a while, it starts to concern you, the solution is an up-gradable engine that powers your creation efficiently making it in the long term, a cost-effective investment.

ERP Solution and very clean car engine

It is the same with your business. Spending years of hard work and trying to pursue ideas that made you start your business in the first place should always be your primary focus. We know it can be a messy challenge dealing with various arduous business processes, this can be especially the case with basic accounting software where basic transactions and data is captured. If you are a small business this would be perfect as it meets your basic requirements.

ERP Solution can help with inventory and delivery

But if you are experiencing growth and wish to expand your business in the coming decade, basic accounting software will not only make your life a confusing mess, but it will also cost you heavily in the long run. The time spent on managing information within a system that isn’t automated like an ERP solution can be spent furthering your vision and company instead.


Ok then, what sort of signs should I be looking for to upgrade to an ERP solution?

There are some clear benefits for you to upgrade to a platform that grows with you, but here are some very clear signs that should alert you to upgrade from basic accounting software to a fully-fledged advanced solution, which ironically is much more user-friendly.  

Sign #1 Multiple trading entities

ERP Solution can help with companies having multiple businesses

If your business is experiencing and you are looking to expand not just locally, you are looking at a state-wide maybe even a global expansion for your business. This would mean you will have to look at creating multiple businesses that are operated across different regions, and for an SME like yours, this can be especially challenging.

On the left, you have the time-consuming and cumbersome process of integrating 3rd party applications with your existing accounting software, and on the other hand, you are running lap after lap meeting different accounting standards, and tax regulations and managing differing exchange rates across your businesses as you expand on a global scale.

This is where an ERP solution like triumph comes in, the solution is not just implemented to aggregate all this data into something comprehensible and easy to follow, an ERP solution automates currency conversion, regulations, and reporting for different subsidiaries across various regions or countries, all this in real-time. Helping you make quick and informed key decisions during key moments for your business.


Sign #2 Incomprehensible Data 

How is it that Google and Facebook can target you with relevant ads so well? That you often make purchasing decisions based on them.

Facebook icon in macro shot

This is only possible because as you used these platforms more, the amount of data given to these platforms by you has grown as well, helping identify and helping you become aware of products and services you would use or have an interest in.

It is the same with your business data, it grows as you grow. 
ERP solution, coding

What you do with data will forever change the way you operate and run your business, it is a gold mine of information on how your business works internally and externally, in today’s market, data is currency as it directly correlates with increasing business performance and improving customer satisfaction.

However, with basic accounting software, important key data can be spread sparsely across various areas, especially with a business that is expanding like yours. This means keeping track of this data over your various subsidiaries or even departments through 3rd party applications and confusing spreadsheets that are incomprehensible as the data hasn’t been processed in real time for insightful reporting that can help you make informed decisions.

An ERP solution like Triumph provides you with a one-stop shop for your business data, and it isn’t built into a spreadsheet but designed to give you access to your data in a visual manner that is easy to understand and even easier to act on, in real time.

What’s great about an ERP solution like Triumph is that having real-time data accessible simply through a dashboard, gives you greater transparency surrounding not just how your business truly operates but also how customers interact with your business. This helps you essentially spot critical deficiencies across your business and gives you the ability to not just identify them but make actionable changes that will help you further become a major competitor in a busy market.


Sign #3 Micromanaging Inventory in Multiple Locations

Ship with containers, Track with an ERP solution

It is quite common for businesses to adopt an omnichannel strategy when looking at expansion, especially in a post-internet world where orders can come from various locations, making the supply chain for your products a complex system. This is why businesses usually implement a multi-location system to carry stock, this not only cuts down on delivery time increasing customer satisfaction but also saves money on shipping and handling across various locations to reach one destination.

Relying on basic accounting software which can only handle total stock across various locations, will not only be a huge task of guesstimating but also incredibly unreliable if you want to make key decisions in real-time based on available stock. This can often lead to ensuring extra stock is kept if there is stock-out at any one location, costing you more and in the long term affecting the value of your stock as it depreciates.

Accounting Software

If you are looking to expand your business in order to fulfill your vision without any costly hiccups across your supply chain, then it is best to start thinking about implementing an ERP solution like Triumph, Triumph ERP is a heavily modular system that grows with you, but importantly Triumph includes the Multi-Location stock module, helping you allocate each location/store to have its very own price, quantity, and items which can by synchronised across all of your locations.

Having the ability to accurately forecast and plan for stock can be a challenging prospect without an ERP solution, this can lead to poor customer satisfaction and retention in the long term as well. Moreover, the Multi-Location stock module is so advanced it also gives you automated sales, inventory, profit, and loss reports from each location. To learn more, click here.


Sign #4 Waning Supply Chain Management

Birds eye view of shipping dock

If your software doesn’t give you a complete picture of your supply chain, including taking into account, accounting regulations, tariffs, and regulatory requirements on a global scale, this can impact product delivery and potentially cause financial and reputational damage.

If you are looking at expansion you will come across such a challenge, instead of relying on spreadsheets to keep track of your supply chain or installing additional plugins to keep up, general accounting software will not cut it.

Basic accounting software usese Excel sheets, which are very time consuming compared to an ERP solution

Not only does it put you at a greater competitive disadvantage, but general accounting software also cannot act as a central hub for all business data, this would include tracking orders through 3PL partners. Moreover, while you have the convenience of a 3PL partner fulfilling orders, accounting software will not be able to report on inventory, orders, vendors, and customers through a unified perspective, this is where an ERP solution shines.

ERP solutions like Triumph have the transformative ability of unifying your supply chain under one system, a central hub for key stakeholders within your business to easily access through an easy to read but detailed dashboard. Furthermore, unlocking the full extent of your supply chain with Triumph not only helps give you real-time information on the supply chain, but you can build backup plans, and quickly adapt to a constantly evolving market.

To find out more, try Triumph for free or better yet get in touch with us!

What is ERP (Enterprise Resource Planning)?

what is ERP

When your business is growing, it can become difficult to keep everything running smoothly (or profitably!), and can feel as though you are just chasing your own tail as you jump between various programs just to try and keep everything on track.

Through the use of an ERP system however, you can bring all your business processes together, and gain the ability for data to move easily throughout the system. With the ability to collect your organisation’s shared data form a variety of sources, ERP systems can eliminate data duplication and provide data integrity with a single source of certainty. With this ability, you are no longer making staff maintain separate databases and spreadsheets that have to be manually merged to generate reports, and can help streamline the process and improve data visibility when it comes to financing and business management.

So, in a world where we continue to rely on technology being connected everywhere we go, and the internet of things (IoT) becoming the norm, companies have found a necessity of having a cohesive location for their business information, eliminating the need to transfer data between programs or departments.

But what exactly is an ERP system, and how can its capabilities benefit your business?

 

What is ERP?

 An ERP (Enterprise Resource Planning) system, is a solution that helps businesses manage their entire backend processes. This includes everything from the finance and accounting side, to procurement, inventory, and supply chains- just to name a few. Simply put, ERP is a centralised program from which all the essential functions of a business can be run.

Many ERP systems come in all shapes and sizes, with some like Triumph ERP offering customisable options tailored to suit your business needs, so regardless of what industry your business is in, there will be an ERP system to help you manage your business.

 

What does an ERP system do exactly?

ERP systems offer a number of uses for all kinds of businesses, but essentially, the ERP system is used to keep all of the crucial data and information from your business in one place, ensuring that everything you need to run your business smoothly is safe, organised, easily accessible, and fully intergrated. When you set up an ERP system for your business, you will only need the single program to keep track of all the moving parts within your organisation- no more misplaced spreadsheets! -and gives you a complete picture of the who, what, where, when, why, and how of the day-to-day operations of your business.

 

How can an ERP system benefit my business?

 Not only can an effective ERP system help you improve business efficiency, but it can also help you make better business decisions for the future.

For a business to improve, transparency within the operations of the business is important. With the capabilities of an ERP system, you can shine a clear light on all aspects of your operations and gain a clear overview of your business, and understand how you could be doing things more efficiently. This will also assist you in making informed, financially sound decisions- which can be difficult when you don’t have the full picture.

Here are just some of the ways ERP can benefit your business:

  • Track your business resources: Gain a better understanding of cash spending, raw materials, personnel, production and more.
  • Understand consumer behaviour: ERP systems can collect the required data so you can analyse behaviourisms, allowing you to see what is effective, what may not be working so well, or even how you can improve product movements.
  • Manage the flow of information: Centralise your data to one main location for easy access for yourself and your staff.
  • Control the costs recorded against jobs and service functions within your business.
  • Estimate, charge-out and bill time and material costs which are raised by a particular job or client.
  • Know the progress of each job: quickly and easily know what has been completed, what materials are being shipped, and more in the one convenient location.

 

Do I need an ERP system?

Not every business may find ERP systems suitable, however, if you have recently had growth within your business, or plan on growing it soon, or perhaps you just want to find a way to organise and improve your workflow, then perhaps and ERP system could be the answer.

Perhaps you don’t need an ERP system at the moment, but have future plans to increase and improve your business model, it’s important to know that it’s much easier to put the necessary infrastructure in place now, rather than try to implement an ERP system when you’re struggling to keep up with demand. ERP systems such as Triumph ERP for example, are not only scalable, but also customisable, so you can be confident about the system expanding when you need it to.

If you already have software in place such as Xero or MYOB and you feel that it does the job you need it to do well, then perhaps you don’t need to transition to a ERP system yet, however it is important to address that there are a few key signs that may be telling you that your business may benefit from stepping up to an ERP system.

Firstly, you may find that your current software doesn’t seem to be keeping up with the growth of your business without additional plug-ins or updates. Although additional plug-ins to software can help you gain a new avenue for data collecting and reporting and hold off an upgrade for a while longer, it is important to understand that with the more plug-ins you add to software like Xero or MYOB, the more locations your data can be sent to, causing various information to be spread out over various locations, rather than formulated in one secure location.

Secondly, your business may have recently gone through a merger or acquisition process. This can cause a dramatic change to business operations, as well as a potential increase of consignments. With the new changes leading to increased data, the recording of information collected simultaneously can avoid confusion through the use of an ERP system.

If you still feel that there is still no room for improvement in the way you operate your business, then chances are you may not need to invest in an ERP system. However, with ERP becoming popular with businesses for their fully-integrated finance and business capabilities, the chances are that your competitor could already be using ERP software.

Sure, no one said that making the most of a fully integrated ERP system would make running a business a walk in the park, but what it will do is help you manage all levels of your business from one secure location, creating ease for your business management needs.