How Cloud-Based ERP Can Benefit Small Businesses

There's no question that small businesses have greatly benefited from today's technology. Ten years ago, many companies would not have considered placing their enterprise resource planning (ERP) systems on a public cloud platform. But now it's a route that more businesses are taking.

Understanding Cloud ERP

Cloud-based computing utilizes the Internet to administer shared computing resources, like disk storage, memory, and processing power to run numerous software applications. Meanwhile, cloud ERP is software that is accessed via the cloud. It uses the Internet to connect to servers that are hosted away from a company's premises. This is in direct contrast to traditional ERP and business productivity software that is generally housed in the company's headquarters.

Benefits of Using Cloud ERP for Small Businesses

Numerous businesses have turned to ERP solutions to automate their businesses, and small and medium-sized enterprises (SMEs) in particular have discovered that cloud-based ERP provides multiple benefits.

It's more secure: While some companies are admittedly still worried that cloud ERP can render their data vulnerable, more and more companies are placing their trust in cloud security. This is because companies have strict security requirements, which puts cloud ERP providers under pressure to ensure that their technology is always secure.
It boosts productivity: Small businesses are often concerned that moving to a new technology will disrupt their work. But moving to a cloud-based platform is just a temporary inconvenience and will actually boost productivity in the long run. Cloud ERP is user-friendly and makes it easier for employees to collaborate in real-time. It also eliminates the need to get in touch with other employees just to ask for a single file since everything is accessible. And the less time is wasted on simple processes, the more time is afforded for innovation and improvement.
Data flow is centralized: Small businesses often develop problems once they start growing and find that the various departments and their data are housed in different areas. For instance, inventory data is kept in one software program while financial information is saved in another. Cloud ERP ensures that every relevant data is in one area, giving all authorized users access to important files and data easily and quickly.