What is ERP software?
In a nutshell, ERP software is what runs business
ERP stands for Enterprise and Resource Planning. But that doesn't really tell you much about what it is used for. Basically, ERP software stands behind everything a business does - from manufacturing to sales, from paying bills to receiving customer payments - all of it ties into ERP software. It is ERP software that informs a business as to its profitability, allows it to prepare budgets, forecast sales, determine its valuation, and much more.
ERP software can best be understood by looking at its components. Common components of ERP software include:
- Accounts Payable (paying bills from vendors)
- Accounts Receivable (tracking invoices to customers and receiving payments)
- Bank Account Management (reconciling business records with bank records)
- Fixed Assets (tracking business property)
- General Ledger (core accounting and financial reporting)
- Inventory Management (tracking, purchasing, and receiving inventory)
- Order Entry (entering orders from customers)
- Payroll (paying employees and related tasks)
- Work Orders (entering work orders from customers - similar to Order Entry)
ERP software can also include other components, such as Customer Relationship Management (CRM).
Each of these components is a resource to be tracked. The tracking of all these resources together is what allows the software to be useful in guiding business decisions (that is the planning part). But what about "enterprise"?
The enterprise in ERP refers to looking at all these pieces together across the entire business. Businesses from a single fruit stand to multi-national manufacturers need to understand their resources from the lowest to the highest levels.
In order to do this, ERP software receives data from all parts of the business. This data is organized into various categories that can then be used to make intelligent observations about how the business is performing and help make plans for the future. Because of this central role, good ERP software must be:
- Available - the software needs to be ready to go when the users need it, including simultaneous access to all functions
- Reliable - the software needs to work correctly and accurately
- Secure - the software needs to keep business data under the control and exclusive view of the business
- Transparent - the software needs to permit authorized users to access business data using whatever tools the business desires
Any software that puts restrictions on usage, doesn't work, doesn't protect your data, or doesn't let you query and work with your data is not good ERP software.
Integrated Software for Business is ERP software that meets all these requirements. We want to listen to your needs, understand your business, and provide good solutions. Want to know more? Contact us and we will be happy to answer your questions, show you a demo, or discuss whether ISB is right for your business.