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From Christel Heije on 12 July 2021
An ERP system, a business software for automating business processes. It can move your organisation forward significantly. It gives you control and visibility of business processes. At the same time, it helps employees work more efficiently.
But what exactly is ERP software and what are its benefits? Are there things to consider when selecting it? And how do you implement the software within your organisation? In this article, we have listed all these points for you.
❯ What is an ERP?
❯ Why choose an ERP?
❯ How do you select an ERP?
❯ What software solutions are there?
❯ Link your ERP system with claims software
What is an ERP?
A Enterprise Resource Planning (ERP) is software that organisations can use to support processes within the company.
ERP systems are applicable within almost all types of organisations and in all kinds of industries. In large and small and both manufacturing and service companies. ERP software usually consists of basic modules that unify and automate all business processes. To this you link additional modules.
Examples include inventory systems, accounting and finance, human resources, sales and marketing, procurement, inventories and customer relations.
Why choose an ERP?
Using an ERP system has many benefits for the entire organisation. Thanks to the analysis of KPIs (key performance indicators), the organisation has the right data to optimise all processes. This makes organisations more efficient and flexible.
- The analyses it software package performs production cost optimisation.
- Work is less labour-intensive and cooperation is better.
- Productivity then increases, reducing costs and shortening order lead times.
- As a company, you often manage to be more customer-centric and thus provide better service.
With an ERP, all data is stored centrally. Departments now no longer all have separate systems in which they enter their data, just one overarching system.
The system provides structure and a good overview of all results and processes within the organisation.
The benefits for your finance team
Which system best suits your organisation and financial team is not that simple. The decision to adopt an ERP is usually a strategic move. Often, the proposal comes from the CFO and finance team.
After all, an ERP is a source of information that will help make the right decisions, create a plan of action and ensure further growth.
Making the decision to go with an ERP goes hand in hand with growth. In many cases, a small organisation will start keeping track using Excel tables because there simply aren't the are not to purchase and implement an ERP.
As the company grows, it becomes increasingly difficult to have an overview of KPIs in Excel. And, it may be time one to implement an ERP.
So, besides the benefits for the entire organisation, buying an ERP certainly helps finance teams move forward. Below, we list a few concrete examples:
- You work with one interface with integration to existing tools and systems creating a total overview. This is the opportunity to thoroughly structure your organisation;
- You can process large amounts of data more easily(something difficult in Excel). Easier verification of figures gives you a clear picture of your profit margins and consolidated data;
- The checking process and printout of reporting takes considerably less time which facilitates the closing of the balance sheet each month.
How do you select an ERP for your organisation?
It is important to make a good comparison and not to take any chances when selecting a supplier and package. Beforehand, you should therefore carefully identify your organisation's needs and expectations.
To set up an ERP, you need to take these elements into account:
1. The budget: what are you willing to spend? The investment may be large at the start (between €30,000 and €50,000), but once implemented, it outweighs the ROI. There are also cheaper providers in the market. So do good research.
Often, according to the organisational structure, wishes and needs, certain modules, such as the accounting module, are used or not. The package is thus tailor-made and so are the final costs.
2. Planning: preparing all the necessary specifications takes a long time because of the many stakeholders involved. Keep in mind that from selection, it will take an average of about two to five months for an ERP system to be ‘up and running’.
3. Implementation: once all the specifications are clear and the solution is chosen, you need an (internal) project manager to migrate all the data to the ERP.
Thus, for a careful and successful implementation, professional guidance is recommended. For instance, all employees need to be properly prepared and trained. This takes time and energy, but this process gives you an immediate opportunity to improve the organisation's current work processes.
Read more about how to integrate SimpledCard with your ERP or accounting programme.
What ERP solutions are there?
There are an increasing number of ERP system providers on the market today that are suitable for large multinationals as well as for medium-sized and small companies. There are even ERP packages starting from two users.
We have listed below some major vendors with the key features and benefits of their ERP packages:
AFAS: a modern automation software
AFAS delivers one total solution for every industry, connecting all administrative processes in one database and promising 100% efficiency. This innovative Dutch family business likes to take social responsibility and has over 12,000 customers.
The package offers CRM software, Financial Administration, HRM & Payroll, Order Management, and, if required, software for procurement, tax, subscription management, document management, course management and workflows.
Software in the cloud at Workday
This innovative US cloud-based management software vendor offers flexible and scalable solutions with good support for medium and large enterprises.
Workday provides Financial Management, Human Capital Management, Enterprise Planning, Spend Management, Talent Management, Payroll & Workforce Management, Analytics & Reporting, Professional Services Automation, Platform & Product Extensions.
The renowned Exact Online
This Dutch software company was founded in 1984 and now has branches in 20 countries. The ERP package brings financial, logistical, project-related and administrative business processes together in one system and is used by over 9000 accountants.
It offers the possibility of integrations with 220+ business software programmes. Exact Online promises a grip on your processes, higher productivity and minimal risk of errors.
Link your ERP system with claims software
If you have successfully implemented the ERP, then you can go one step further. If you link the software with SimpledCard, then the entire payment and claims process is automated. But how does claims software work in combination with an ERP system?
In short, how do you ensure streamlined ERP integration?
An API makes it easy to connect your ERP link to SimpledCard's claims software. It ensures a uniform workflow between your expense management and accounting.
All entries are settled within the system and then in final form can be uploaded to your own accounts. For this, a customised system is used that applies your internal account numbers and follows the rules of the double-entry bookkeeping system.
You choose standard reports or use customised reports tailored to specific software requirements.
This way, bookings and reports are always up-to-date, so as a finance team you always know where you stand.
What specifically does an ERP integration entail?
So a company-wide ERP package brings many improvements within the organisation, such as full insight into your business processes and a reduction in production costs.
In short, an ERP can be a great help to a company that is growing and dealing with increasingly complex day-to-day management. An ERP package structures finances and gives finance departments an accurate picture in real time. It is an investment that will save you time.
So with an ERP package, you finally have a grip on your business processes and a clear overview of where your organisation stands.
Get in touch
Integration support and technical advice are provided by our specialised team. Our financial experts will be happy to tell you more about it.
In case of questions, take contact our team and they advise you what is the best solution for your organisation.
From Christel Heije
