Upgrading a business to move away from manual processes or shift away from dated and clunky software may seem like a daunting task to a business owner. However, making the switch is an upgrade that will provide a central database for an entire company, valuable reporting potential, and a host of other benefits.
NetSuite is a popular enterprise resource planning (ERP) system that businesses are operating on and many are making the switch to. What capabilities will this system give a business that it doesn't currently have? How will the technology lower costs and facilitate growth for a business? We're here to break down some of the top benefits NetSuite provides businesses.
- Data Security. Data is a business's most prized possession, because with accurate and detailed data comes the ability to make strong and informed decisions. An ERP system can help protect that asset and keep it away from undesirable eyes. Even the fact that all company data will be stored under one roof, rather than across multiple systems, provides a higher level of protection.
With a cloud-based ERP system like NetSuite, information is stored across multiple remote servers to establish redundancies and protect against a single point of failure, if one ever does occur. This is a strong reassurance that important company and customer data will remain safe and secure.
- Centralized Data. One of the most valuable aspects of an ERP system is having a centralized place for all information from all departments of a company. Without such a system in place, data is spread across multiple systems, spreadsheets, physical filing cabinets, a box in the closet...you get the idea.
With inconsistent forms of data, there is no standardized way of handling it. An ERP system will establish a standardized way of inputting data so that it will allow business owners and management teams to run reports with ease and have all the insights needed to make informed decisions to save time and money.
- Productivity Increase. There are many ways that an ERP system could help improve productivity for a business, but automation is the one that stands out the most. Many of the basic tasks that get done within a business, the ones that tend to end up taking the most time, can be automated through NetSuite to free up valuable time for employees.
Greater productivity among the existing team means there is less of a need for hiring more staff, as opposed to not having an ERP system and still needing the manpower to manually handle the "busy" tasks.
- Real-Time Reporting. Along with the previously mentioned automation opportunities, reporting is one of the largest benefits that come with ERP systems. It offers endless possibilities with the ability to customize reports across all areas of the business - accounting, inventory, sales, marketing, orders, procurement, etc. Whatever KPIs a business wants to track, measure, or report on, an ERP system like NetSuite can make it happen.
A report is only as accurate as the data that goes into it. This is why real-time is so important. If the data going into a report is two weeks old, the information is irrelevant and is not good to use for effective decision-making. Having the most accurate and up-to-date information has become critical in today's fast-paced, tech-driven, environment.
- Forecasting With Confidence. Businesses can only be prepared for the future if they know what to expect. Forecasting uses historical data and other inputs to predict future sales, revenue, expenses, and other figures. The accuracy level of forecasting improves with an ERP system because they're based on more accurate and comprehensive data that is easily pulled together from the same place.
Forecasts that business owners and management teams can confidently rely on allow appropriate preparations to be made. If sales are expected to increase a certain percentage, inventory will have to be ordered at a certain rate through the year, or a major expense is expected to be incurred at some point in the future, businesses will be prepared to handle it with forecasting through their ERP system.
Now, these are just some of the many benefits that an ERP system like NetSuite brings to the table for businesses. However, there is so much more that it can do for a business. To learn more about switching over to NetSuite, the team at AccountingDepartment.com can assist you. Our highly trained team of professional accounting specialists is here to serve all of your bookkeeping, controller, and advisory needs.