ERP For Small To Medium Businesses – Simple ERP

This section applies to Small and specific Medium Businesses – if you are a medium or large business see ERP Solutions.

ERP for Small Business

A typical business will go through a range of growth phases. Moving from an accounting package and ten spreadsheets to an ERP is one of them. A typical scenario is where a company has a simple accounting needs served by MYOB and needs additional capabilities to support growth. There are a number of options:

  • Simple ERP
  • Full ERP

Clarify the reasons you need ERP to ensure you find a successful solution here by downloading the free ERP Checklist that will help you safe time in defining your requirements.

Simple vs Full ERP solutions for small business

A Simple ERP and a Full ERP come from different places and have different objectives. I may well upset some vendors here, but there is usually a lot of overlap between what a Simple ERP can do and what its bigger rival can do. Some of the vendors of Simple ERP will probably argue that they are not ERP at all, but being popular is not our objective. A Simple ERP is often based upon a strong and robust finance base, then has been extended into other areas such as stock control. An ERP package has usually been designed and built as a complete package.

Depending upon your business, a Simple ERP may be good for today but not support future growth. Whereas an ERP may be overkill for your current and future needs. In this market there are a lot of companies who wholesale/retail products which may well only need a Simple ERP solution. Another area that delineates the market is Human Resources and Payroll. HR modules are common but many Simple ERP and ERP vendors only offer a Payroll export feature.

In these scenarios its open for you to consider either an on-site or Cloud based ERP solutions.

A supporting Guidebook for this area is the Accounting or ERP Software Guidebook.

Vendors to consider

MYOB Business/Enterprise



SAP Business One

Microsoft Dynamics ERP


Accounting Software vs ERP

When it comes to knowing whether your company needs an Accounting Package or ERP package ask yourself two questions:

  1. What are your plans and when will you grow?
  2. What is your business?

You can also download the free ERP checklist here to help you clarify the reasons you need ERP to ensure you find a successful solution!

Accounting Packages

Accounting Packages deal with accounting, with summary, analysing and presenting financial data and information on a company. The software records the accounting process and accounting operations of a business within its functional modules. The financial statements comprise the balance sheet, income statement and statement of changes in financial position can be easily prepared using accounting software.

The accounting software has different functional modules. Some of them include the general ledger that supports the financial operations of the company, accounts payable when the company between its bills and pays money it owes.

The different categories or types of accounting software are:

  1. small / personal accounting software that are primarily intended for home users. They are simple and inexpensive with simple operations such as managing budgets.
  2. the accounting software are low-end markets for small businesses, which are capable of serving a single national market.
  3. the accounting software market are companies with medium to large enterprises. These software are able to meet the needs of multiple national accountancy standards and facilitate accounting in multiple currencies.
  4. high end accounting software in ERP.

ERP Packages

Typically, a small business will start with an accounting package and as the business grows look towards an ERP system. However, I am aware of a two-man company that intended to grow quickly and saw ERP as an enabler of that. Similarly, if you intend to be a wholesaler or distributor and work with large retailers it may well make sense do do ERP so that you can exchange information rapidly and automatically with this important customer.

Modern ERP packages move beyond just accounting and cover areas such as stock control, distribution and e-commerce.

In the four categories of accounting software above, typically examples 3 and 4 to be served via an ERP package. It is now becoming quite common for small businesses or around 5-10 staff to take up an ERP package -especially if they handle products, be that manufacturing or value-added distribution.

Discover what basic features every ERP solution needs to help your business perform today!