Mumbai, Oct 31, 2020: Small and Medium Enterprises (SMEs) are big contributors to the Indian economy. As per the MSME Ministry’s FY19 annual report, 63.4 million SMEs contribute around 30 percent of India’s GDP (Gross Domestic Product). Apart from running the business operations, SME owners also have to deal with hurdles related to compliance, vendor management, GST filing, and more. An ERP software can do wonders for their business but many of them may have the lingering question ‘What is ERP software’? This is especially true for business owners who are not well versed with the technology and manage their business operations in an old-fashioned way!
What is ERP Software
Enterprise Resource Planning or ERP Software integrates different business functions into a single unified system. Whether you are in the business of manufacturing shoes or running a big software company, the problems faced by business owners remain the same. You have to manage purchase management, vendor management, payroll, etc. Many of the departments can be inter-connected and operating them in a silo can be harmful for the business. It will also impact the speed of decision making which is so vital in today’s fast-paced business environment. An ERP Software comprises of important modules like Purchase Management, Sales Management, Vendor Management, Payroll, Manufacturing, etc. that work in a unified manner. Since the different modules work in an integrated fashion, an ERP software gives a complete picture of the business. It is designed to have a single database due to which users operating at different business functions can execute their tasks faster. Choosing an ERP software like Tally.ERP 9 can go a long way in contributing to the profitability of your business. With Tally.ERP 9, you do not require to invest in a separate accounting software since the essential features of accounting are integrated in the software.
Tasks that can be done using ERP Software
When choosing an ERP software for your business, you should opt for the one that has a proven user-base in India and has the best features related to security, scalability, and more. For example - Tally.ERP 9 developed by Tally solutions is used by many Indian businesses. Since it is developed keeping the Indian businesses in mind, it requires a shallow learning curve. Here are some of the important tasks that can be performed with an ERP Software:
• Performing basic and advanced financial transactions
• Payroll Management
• Inventory Management
• Invoicing/Billing • Filing accurate GST returns and other tax returns such as TDS, TCS etc.
• Business insights through auto-generated reports P&L A/c, balance sheets, stock reports, and more
• Cost Control and cost analysis, Accounts receivable and payable management, and more
Many SME business owners have the wrong notion that ERP software is only required for running large businesses. In fact, earlier you integrate ERP software in the business processes, better it is for your business. With an ERP software like Tally.ERP 9, different business functions would no longer operate in silos and business intelligence of one unit can be used by other departments.
Conclusion
ERP for small business has become a necessity since it helps in running the business operations in a smoother manner. Since ERP software provides better visibility in the business functions, it helps business owners to arrive at ‘informed decisions’ at an accelerated pace.