5 Advantages of ERP Software for Small, Medium & Large Enterprises

Tally Solutions |Updated on: April 17, 2024

An ERP software is used by large businesses for a suite of solutions ranging from accounting to compliance management. Many MSMEs are adopting ERP software to ease their business operations and manage of financial data. This software is even GST ready, helping you record business data in GST compliant formats so you can file GST returns without any hassle.

There are many benefits a small business can at its disposal if they adopt an ERP software. Have a look at the important advantages of ERP software for SMEs:

1. Automation

One of the most important advantages of ERP software is its ability to automate recurring tasks of a business enterprise like reporting, invoicing, payroll, etc. It can simplify workflows saving time and resources. With a modern cloud solution, you can even integrate other application to transfer data seamlessly.  

2. Real-time visibility

With an ERP software you will be able to access information across departments. This means that data entered by one user will be available across departments. It has reporting tools and real time analytics to help in decision making. Business owners can automatically receive updates on cash flow, inventory and other metrics through an ERP software. 

3. Multiple functionalities

Another advantage of an ERP software is that it allows to manage accounting, inventory and compliance within a single software. This makes it easier for business owners to assess the impact of finance on their businesses and take day-to-day decisions based on data. 

4. Financial management

ERP systems assist the accounting function by tracking, analyzing and reporting critical business data. The system will showcase how inventory levels and operational processes affect cash flow. It can gather financial data from across the organisation for sound financial planning and budgeting. It can evaluate cash positions, identify outstanding invoices and payment schedules, and then estimate the cost of operations. 

5.  Improves customer relationship

Like we have already mentioned, ERP systems can gather data from across departments. It can retrieve customer relationship data to assist you in analysing customer journey with the organisation. It can give deep insights into customer behavior and sales patterns, helping you improve customer relationships and sales figures simultaneously. 

Small and medium enterprises (SME) need ERP software to manage three critical functions - accounting, inventory and compliance. TallyPrime can be used in all these areas with its simple-to-use interface that manages the complexity of the functions in the background.

Since TallyPrime seamlessly allows to manage accounting, inventory and compliance within a single software, it becomes easier for business owners to assess the impact of finance on their businesses and take day-to-day decisions based on data.

Read More on ERP

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