ERP software FAQs

Whether you are managing stock, orders, customer relationships, cash flow or people, ERP software conveniently brings together your core business functions in one place, helping you make the most of your resources, improve efficiency and increase profitability. 

12 ERP software FAQs

1 What is ERP software? 

2 How can ERP software benefit my business? 

3 What if my business does not use ERP software? 

4 How can regulatory compliance be harder without ERP software? 

5 How can using ERP software boost productivity? 

6 What are ERP software modules?  

7 What key factors should I focus on when researching ERP software? 

8 How do small businesses in specific sectors use ERP software? 

9 How much should I expect to pay for ERP software? 

10 Should I choose cloud-based or premises-based ERP? 

11 What are popular examples of ERP software? 

12 How can I choose the right ERP software? 

By offering real-time access to critical data, ERP software enables you to make business decisions based on the most up-to-date information. It can also support your compliance needs and help reduce operational risks.

To boost your knowledge and help you understand how ERP software can save your business time and money, while supporting growth and efficiency, we’ve answered 12 of the most frequently asked questions (FAQs) about ERP software systems below. 

1 What is ERP software? 

ERP software centralises management of key operations, including finance, stock, sales and marketing, HR, payroll, procurement, customer relationship management (CRM) and project management. Using ERP software brings everything together so you can work smarter, minimise costs and grow your business more successfully. 

2 How can ERP software benefit my business?

• ERP software helps businesses to remain well-organised, more efficient and better-informed.  

• ERP software automation can bring significant admin time and cost savings. 

• ERP software enables people in various parts of a business to access and share important data, which can bring productivity and efficiency gains. 

• ERP software enables owners and managers to make smarter business decisions guided by accurate information they can access in real time. 

• ERP software can enable a business to provide superior customer service (eg by better tracking orders, managing customer relationships and personalising communication with customers, etc). 

  
  

3 What if my business does not use ERP software?

Without ERP software, businesses rely on separate systems to manage sales, stock and accounts. This can lead to duplicate work, data errors and missed opportunities, because information isn’t shared easily across the business. Using an ERP system brings everything together in one place, saving time, improving accuracy and helping you make decisions based on up-to-date information. 

4 How can regulatory compliance be harder without ERP software?

Regulatory compliance (eg GDPR, health and safety, etc) can be much more difficult when you need to manage critical information across several platforms. There can be additional data security challenges, too, when data is not stored centrally.  

5 How can using ERP software boost productivity?

ERP software enables you and your people to share information efficiently, which can prevent duplicated effort, while allowing all team members to use the same data to work towards the same goals. By centralising data and workflows, ERP software can better facilitate collaboration between all team members.  

• So, for example, an online shop could use ERP to integrate its website with its inventory and accounting. When a customer places an order, the ERP system automatically updates stock levels, generates an invoice and sorts out shipping, freeing up staff to focus on customer service and sales. 

  
  

6 What are ERP software modules?

ERP software modules are specialised components within an ERP system that manage specific business functions, such as finance, HR, inventory, CRM, etc. Each module integrates with others to streamline operations and centralise data.

• So, for example, when the sales module processes an order, the finance module automatically records revenue in the business’s financial records, while, if stock is low, it triggers a purchase order in the ERP procurement module. 

7 What key factors should I focus on when researching ERP software options?

Focus on ERP software modules that will directly support your operations and growth. That is likely to include accounting, finance and cash flow management, sales and marketing, CRM, people management and payroll. Inventory management is key for many businesses, who need their ERP software to keep track of stock, manage orders/reorders and (possibly) oversee warehouse operations efficiently. Procurement and supply chain management can be an essential ERP software module, while other businesses need project management and/or manufacturing modules. 

8 How do businesses in specific sectors use ERP software? 

• Manufacturing: A UK manufacturer could use ERP software to schedule production runs, track raw materials and help ensure compliance with safety standards. ERP software could also play a key role in reducing downtime and defective products. 

  Retail: A fashion retailer could use ERP software to synchronise online and in-store sales, manage seasonal stock and predict seasonal buying trends, helping to enhance customer experience and prevent overstocking. 

• Logistics/distribution: A small regional distributor could use ERP software to optimise delivery routes, monitor warehouse stock and track shipments in real time, helping to minimise transport costs and better ensure delivery accuracy. 

• Hospitality: A hotel chain could use ERP software to manage room reservations, coordinate housekeeping and analyse occupancy rates, to cut costs and ensure higher guest-satisfaction rates. 

• Construction: A construction firm could use ERP software to manage its work on multiple job sites, as well as manage expenses and ensure regulatory compliance, helping to keep projects on schedule and within budget.

  
  

9 How much should I expect to pay for ERP software?

ERP software pricing varies widely, determined by number of users, modules, implementation and training costs, your customisation needs, etc. Expect to pay between £50 and £500+ per user/month, depending on the complexity required

10 Should I choose cloud-based or premises-based ERP?

Most small businesses choose cloud-based ERP software, which offers lower upfront costs, subscription-based pricing, automatic updates, remote access and scalability. On-premises ERP may suit businesses with strict data control needs or larger businesses, but it requires more IT resources and greater upfront investment. 

11 What are popular examples of ERP software? 

• Microsoft Dynamics 365 Business Central A cloud-based ERP that integrates finance, sales and operations with strong mobile access and scalability. Great for businesses seeking a unified platform with Microsoft ecosystem compatibility. Find out more. 

• NetSuite ERP Consolidates finance, inventory, CRM and e-commerce into one system, eliminating data silos and manual duplication. Could help you make better-informed decisions and manage your cash flow more effectively. Find out more. 

• SAP Business One  

Integrates core functions such as finance, sales, inventory, purchasing, CRM, and production planning. Strong on inventory and production management, a good fit for businesses in complex supply chains. Find out more. 

• Zoho One Created to help growing small businesses win more customers, manage their people, track their cash flow and manage their operations on one unified system. Find out more. 

• Odoo An open-source ERP that offers more 30 core modules including accounting, CRM, inventory, manufacturing, HR, project management and eCommerce. Highly customisable; install only the modules you need. Find out more. 

• Many other ERP solutions are available, so, guided by your specific needs, research your options thoroughly. 

12 How can I choose the right ERP software?

Begin by identifying your key pain points and focus on problems you need your ERP software to solve. Think about where automation could help you save time and money by making your processes and workflows more efficient. Work out how much budget you can afford to commit each month to your ERP software. 

Carefully consider whether you need your ERP software to have sector-specific features or whether generic ERP software would work well for you. Seek ERP software recommendations from other businesses, research potential options online and consider whether the cost is within your budget.  

Contact ERP software providers and ask them why you should choose their software. Take advantage of free demos, to a get a better feel for the software. To limit costs, focus on key modules first, then expand where necessary. Also find out what support and onboarding is available. You and your people should know how to get the most from your new ERP software.