Enterprise Growth Hacks: Spreadsheets vs Accounting Software vs SAP
Each journey begins with a single step. Most Enterprises start out at a small scale, from an independent business or a promising start-up to gradually scaling up becoming a sustainable SME and sometimes even a unicorn or a multinational corporation.
The ultimate objective of any business is to grow at an accelerated pace offering high performing products, services and solutions. You can’t get there unless your operations are streamlined in a way that can be tracked with speed, ease and accuracy.
Enterprises begin their journey charting and jotting everything down on excel spreadsheets – tracking every move from stock, inventory, quotations, materials and their status. In fact, more often than not, businesses have encountered ‘losing-all-data-on-excel-sheet’ issue. That’s why the need for accounting software came up.
Necessity soon became the mother of technological innovation leading to sophisticated Accounting Software hitting our virtual shelves because we finally understood that accounting with Excel isn’t a wise choice. However, with industry disruption due to technology and dynamic market forces, the ways Enterprises function too have evolved.
Accounting Software did make business operations easier, but they weren’t able to address all the issues plaguing business process management and optimization. There reaches a point when Enterprises must decide to make the move to replace their existing Accounting Software with an Enterprise Resource Planning Solution like SAP.
ERP stands for Enterprise Resource Planning. It connects all the functions of an Enterprise including:
- Inventory Management
- Supply chain, and much more.
Your go-to accounting software supports functions such as:
- Financial Reporting
- Revenue Recording
- Sales Tracking
As an inter-connected centralized system, ERP goes beyond that. It lets you share relevant information across departments. You get to have an insightful look into streamlined business-operations. An ERP system, also called an ERP suite, is made up of different enterprise resource planning applications that talk to each other and share a database. There are three different types of ERP implementations – cloud, on premise, and hybrid. Each business has different needs and would require customized solution which can be either of these.
You can take these functions for granted in addition to:
- Efficient Supply Chain Management
- Monitoring Tracking all Logistical Requirements
- Inventory and Warehouse Management
- Customer Relationship Management
- eCommerce and much more.
SAP ERP suite is a fully integrated comprehensive, end-to-end solution that covers almost all facets of the business. Growing businesses need additional functionalities that ERP solutions offer. Your standard accounting software will facilitate your basic accounting needs; however, it lacks meticulous supply/demand predictions to achieve your existing revenue goals. ERP provides detailed insights for relevant future predictions that can help you make informed decisions well in time.
When should you make the move?
If your enterprise has been struggling with these issues, it’s time you make the move to an ERP suite:
- If your daily operations and activities consume more time than you can spare.
If the core functions of your enterprise such as closing the books take a long time, you need an ERP software which integrations all your siloed data and solutions in a centralized system with a common interface for smoother management and execution of core tasks.
- If you have trouble answering key business performance questions.
Segregated systems, lack of insightful detailed analysis that can be easily accessed in accordance with the set KPIs often keep enterprises on their backfoot when arriving to insightful conclusions about business performance.
- Do you have runaway Business Processes?
If you’re finding it difficult to keep pace with your business processes whether its managing customer relations, tracking the inventory or optimizing costs and production, it will be difficult for your business to grow. Not to forget, it will lead to quality bottlenecks affecting your overall business profitability. Your business processes need to be structured using SAP ERP so you can accommodate all your growth needs into a centralized solution.
- If you have manual processes with multiple data sets
If the departments in your enterprise work in silos with separate applications and processes, there would be several instances where data entries will be duplicated consuming a large chunk of productive hours. It’s important for information to seamlessly flow between systems and departments otherwise reporting is inaccurate and demands more time which ultimately affects decision making.
- Are you missing out on capitalizing important industry trends?
If all you can do is focus on execution of your business operations, chances are you won’t have time for anything else that would need your strategic intervention. That’s why ERP systems like SAP are evolved to include intelligent capabilities like machine learning and predictive analytics so you know just when to take that plunge into an exciting new venture.
ERP solutions have several benefits that help enterprises overcome common bottlenecks such as the increasing cost of IT support while ensuring secure access to sensitive data. SAP enables below fundamental capabilities to fastrack your ascent to becoming a key-player in your industry:
- Fast processing and circulation of information across the Enterprise Network
- Automation reduces technical bottlenecks eliminating manual inputs and approvals
- Reduces process and data complexity through contextual information
- Seamless collaboration between multiple departments and teams
- Improved task prioritization based on value creation and need for exception handling
- Efficiently optimizes business processes through flexibility, real-time insights and visibility
- Allows for innovation through increased productivity and insightful conclusions
Production bottlenecks, data entry errors and misplaced orders can be nightmarish situations for growing businesses. The opportunity cost of choosing to use outdated software is very high. A mismanaged supply chain results into poor customer relationship management. The outcome is a business enterprise that is likely to die an untimely death.
Here's a sneak peek into what you get when implementing robust ERP like SAP:
- High Performance and Scalability
SAP ERP streamlines business operations connects the core functionalities of the organization and gives you the flexibility of managing workflows with relevant insights. This ensures high performance and makes the enterprise scalable.
- Process Automation
SAP ERP streamlines and automates core business processes so more work can be productively carried out with optimized resources.
- Real-Time Reporting
Using real-time reporting you can track spending and evaluate your enterprise’s performance as and how things happen. You no longer need to wait to make a critical change, you can know the outcomes just when things happen, so key business decisions can be made quickly to nip issues in the bud.
- Informed Decision-Making
Single centralized ERP solution lets you get rid of multiple record keeping systems and inventory management software, so no information silos exist. The result is timely informed business decisions that are in-line with your vision and strategy.
- Risk Management
Quality checks in accordance with industry and government regulations help you mitigate risk with increased operational control. SAP ERP enables this control throughout your Enterprise.
- Secure Unified Solution
A single record-keeping system or database makes information accurate which can then be shared throughout the enterprise.
And, that is why it is crucial for you to make the move from spreadsheets and accounting software to an ERP irrespective of your current operational scale. ERP solutions support enterprise-wide business process optimization whether you’re an SME, a corporate giant or have recently started out.
SAP implementation experts at Cygnet Infotech with their decades of experience and deep domain expertise understand the needs of businesses inside-out. We have been transforming enterprises in growth powerhouses with seamless customized SAP implementation. You can explore our work here: https://www.cygnet-infotech.com/success-stories.
Isha Memon is a marketing communications professional with a decade long experience in branding and communications. Her communications degree and diverse experience across multiple industries lends her the unique ability to think from different points of view. As the Content Manager, she leads the content team at Cygnet Infotech closely working alongside the digital marketing team. An avid reader, marvel fan and meme lover, Isha loves to write fiction and poetry when she’s not working.View All Posts