From managing inventory and sales to keeping track of finances and payroll, staying organized as a small business can be a challenge. This is where a small business ERP (enterprise resource planning) system comes in.
The best small business ERP systems act as a centralized hub, streamlining and integrating critical business functions like accounting, inventory management, customer relationship management (CRM), and more.
By eliminating data silos and automating tasks, a small business ERP can significantly improve efficiency and profit margins. Here are the top 10 ERPs for small businesses to consider, including the best cloud ERPs, ERP software for businesses looking to scale, and standard ERPs.
Methodology: The best small business ERP systems are easy to use, scalable, and offer automation for business processes. We compiled this list by reviewing an array of ERPs specifically designed or suited for small businesses. This list also includes a variety of on-premise, cloud, and hybrid solutions for businesses with varying data security needs.
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Cin7 is one of the best small business ERP systems, offering a powerful, cloud-based interface specifically designed for the needs of scaling small and midsize businesses with the Core solution. Cin7 also offers the Omni solution for SMBs that need native EDI or 3PL connections or are multi-entity businesses.
Unlike traditional ERP software, which can be complex and expensive, Cin7 makes planning affordable and easy to use with fast implementation in just a few weeks, compared to the months required by other solutions.
Despite its user-friendly interface, Cin7 boasts advanced features like warehouse management, point of sale, advanced manufacturing capabilities, real-time inventory tracking, and robust third-party logistics (3PL) management that make ERPs a worthwhile investment.
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Microsoft Dynamics 365 Business Central is a cloud-based ERP hosted by Microsoft’s secure Azure cloud infrastructure. It offers a unified suite of preconfigured processes and integrates seamlessly with other Microsoft products like Outlook, Excel, and Teams to streamline workflows.
With features like real-time business intelligence through Power BI and an app source ecosystem for industry-specific add-ons, Business Central allows you to tailor the system to your unique needs. It’s best for small businesses that process up to 500 transactions per day.
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With robust accounting, order processing, inventory management, and even production and supply chain tools, NetSuite seamlessly integrates everything your business needs into a single cloud-based platform. It’s made for companies looking to scale to a larger organization or enterprise level.
NetSuite also offers pre-built dashboards and reports tailored to different user roles, providing a clear understanding of key performance indicators (KPIs). It also allows for a phased implementation approach so businesses can adjust the system to their specific needs and gradually add functionalities as they grow.
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To accommodate businesses with varying data security preferences, Acumatica provides multiple deployment options: cloud-based, on-premise, and hybrid. It can work as a manufacturing ERP or function for other specific industries like retail or distribution.
The platform has powerful customization tools for reports and dashboards, ensuring everyone has the real-time insights they need to make informed decisions in their specific role. With advanced features like project accounting and a digital document system, Acumatica is a good choice for small businesses with big aspirations.
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IFS Cloud offers a comprehensive suite that works for a wide range of industries. Lobbies provide customizable dashboards with information specific to your industry and role.
What sets it apart is cutting-edge technologies like AI and machine learning (ML) to optimize processes and empower data-driven decision-making. You can automate repetitive tasks, optimize production schedules, and even predict customer needs. These features help give small businesses an edge in operating with greater efficiency and agility.
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Odoo offers an open-source ERP system that’s highly customizable and remarkably affordable. Its modular designer lets you choose only the functionalities you need.
Plus, Odoo’s commitment to open-source development fosters a community with a wealth of resources, ensuring the system stays innovative and adaptive to evolving business needs. The Standard plan is an online deployment, but on-premise and hybrid deployment options are available with the Custom plan.
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While not a full-fledged ERP system, QuickBooks can be a decent option for small businesses that specifically need finance features. It addresses key needs for small businesses, including accounts payable management, streamlined tax processes, bank reconciliation tools, and in-depth reporting.
It also offers some inventory management features like monitoring the cost of goods, tracking product levels, and receiving automated inventory notifications. This can offer small business owners a user-friendly way to manage basic finance and inventory needs.
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Sage Intacct is a robust, AI-powered ERP system with a modular design so you can choose the functionalities you need most. The cloud-based platform also offers implementation services to help make your business transition as smooth as possible.
The solution integrates with Salesforce for aligned finance and sales operations, as well as APIs for any other integrations. Membership also includes access to masterclasses, learning resources, certifications, and an active online community.
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SAP Business One is a traditional ERP system available in both on-premise and cloud deployments, designed with small businesses in mind. If you’re looking to streamline and unify your business functions without extensive customization, SAP Business One is a great option.
While it may have fewer customization options than competitors, it’s still a flexible, modular solution that gives you powerful features with a simple user interface. There’s also lots of support, with a learning hub, training courses, and certifications, so you can get the most out of the product.
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TallyPrime is one of the most intuitive ERPs for small businesses, as it’s specifically designed to be easy for people without IT or accounting backgrounds to use. Easy navigation paired with simple workflows makes it an easy solution to get up and running quickly.
However, it still has enough flexibility to adapt to different purchase and sales processes. From inventory management with multiple units of measure support to streamlined accounts receivable and payable functionality, TallyPrime helps you gain complete control over your business.
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An ERP, or enterprise resource planning system, is essentially an all-in-one software for managing various aspects of your company. Imagine having finance, inventory, customer data, and even HR all working together seamlessly.
A small business ERP caters specifically to the needs of smaller companies. This means it’s designed to be more affordable, easier to implement, and manageable with fewer resources.
Since an ERP system streamlines critical functions like accounting, inventory, customer relations, and HR, it can be a game-changer for small businesses. The best small business ERP systems save time, reduce errors, and provide valuable insights to help smaller companies grow.
Some other benefits include:
Choosing the right ERP is crucial for optimizing your business processes. However, with a vast array of options available, selecting the best ERP for your small business can feel daunting. Here are five key tips to guide you through this selection process:
Implementing an ERP successfully requires a collaborative effort. Assemble a cross-departmental team representing departments like finance, sales, inventory, and IT. This team will be responsible for choosing the system, overseeing implementation, and ensuring its smooth adoption across the company.
Beyond basic functionality, evaluate how the software would serve your small business. Here are some key questions about each element of the software:
There are three main types of small business ERPs to consider, each with advantages:
Don’t just pick a system based on features you see listed on their website! Most ERP systems offer product demos or even free trials. This allows your team to test-drive the software and see if it’s a good fit for your workflow and user needs. During the trial, identify features you find helpful and areas that might be cumbersome or confusing.
Be realistic about potential challenges during implementation. ERP systems can be customized to fit your specific needs, but extensive customization can add time and cost. Another hurdle can be team resistance to change. Open communication and thorough training are key to ensuring a smooth transition.
As a system specifically designed for the needs of small and midsize businesses, Cin7 is the perfect ERP solution to help grow your small business. With robust inventory management, seamless accounting integrations, and other powerful business integration tools, Cin7 can help your business run more efficiently.
Yes, small businesses can use ERP systems. There are now affordable and user-friendly options specifically designed to meet the needs of small businesses.
The best ERP for your small business depends on your specific needs and budget. Consider factors like system features, scalability, cost (including upfront and ongoing fees), and ease of use.
Yes, ERP systems can be very beneficial for small businesses. They can help you improve efficiency by automating tasks and streamlining workflows as well as help you make data-driven decisions based on real-time insights.
The different types of ERP systems include on-premise, cloud-based, and hybrid. The type you choose depends on your security and accessibility requirements.
Costs can vary depending on features, deployment type (cloud vs. on-premise), and number of users. Cloud-based ERPs are often more affordable for small businesses, with pricing models that scale based on usage.
Many cloud-based ERP systems are designed with user-friendliness in mind, with intuitive interfaces and features that require minimal training. When evaluating different options, request a demo or free trial to see which system feels most comfortable for your team.
Yes, QuickBooks can be used as an ERP, but it may not offer the full range of functionalities found in a true ERP system, like inventory management, CRM, or advanced reporting.
