Does your software include a component for automating calculation and remittance of sales tax? Can it factor landed costs into recorded inventory values and costs of goods sold? Does it create meaningful financial and management reports? If you answered no to any of these questions, it may be time for you to consider upgrading your ERP software. There are many reasons why it’s time to consider upgrading your software system, in addition to just a lack of functionality, and even more excuses as to why you haven’t upgraded to this point. However, once you understand the potential benefits of a properly implemented new ERP system, you’ll be excited about the possibilities offered to increase profits, reduce costs and facilitate growth. Below we’ve included a list of 11 reasons it may be time to upgrade.
1. You spend significant amounts of time on accounts receivables.
Lack of cash flow can prove to be a huge problem for many companies, however, it can be quickly solved with efficient accounts receivable processes. The right accounting software allows you to monitor and track all your receivables with the ability to have automatic notices and updates sent out in order to shorten your receivable cycle and increase cash flow.
2. You manage sales taxes across multiple jurisdictions.
A proper and automated calculator for dealing with sales tax remittance makes it easy to deal with customers and other members of the supply chain from all over the globe. It means not having to research and track different country and region’s tax regulations and ensures you receive and pay the fair price for product.
3. You have to manage information across multiple, standalone solutions.
Without a system that is fully integrated using a single interface, reporting and processing can take longer than necessary and once again there is more room for error. This type of system is more confusing for employees and makes it more difficult when training new people. In addition, when a problem arises you may have to speak with various people from different systems in order to get it resolved.
4. You have a lot of double entry and keying errors.
If you’re using Excel and certain other introductory software systems such as QuickBooks you may have to manually take information from one system and transfer it to another which can result in a lot of entry errors. Errors can be essentially eliminated when information automatically moves throughout your software system. This will reduce the amount of data lost and incorrect business information being transferred and can ultimately improve customer satisfaction and your bottom line.
5. You want to grow and expand into new sales channels such as eCommerce.
Not all systems allow you to easily integrate with existing eCommerce platforms and marketplaces such as Amazon. Look for a solution with a track record for eCommerce integration and an API that allows you to easily connect to multiple solutions.
Other reasons why it may be time to upgrade include…
- You’re missing important industry-specific features such as lot tracking, service and repair and point-of-sale.
- Users are easily able to delete transactions and you’re worried about having a proper audit trail in the system.
- You are looking to add a second warehouse and want to be able to track inventory information across multiple locations.
- The vendor you work with is no longer developing the software and you will soon run out of support.
- You want to start using barcode scanning to improve your receiving, picking, packing and shipping processes.
- You want to find a technology partner – someone who understands your business, and can offer advice and tools to help you grow.
It’s amazing (and quite entertaining) to learn about some of the creative workarounds businesses have designed to manage daily operations, when software exists to automate these activities in a fully integrated system. Each business has unique needs, but on the other hand there are several reporting features and applications that should be an integrated part of every ERP software system (in addition to add-ons and customization work that can cater to individual company processes).
Taking some time to research the functions provided by ERP software systems will give you a better understanding of the functionality that you could now be enjoying.