The business world is getting more complex daily, and the availability of information can be overwhelming. Worse, it can lead to many myths and misconceptions that can easily cloud your judgment.

By Jeff Ryan, MD of AWCape

When it comes to finance and enterprise resource planning (ERP) systems, these myths hinder the progress and adoption of many powerful tools.

Let’s debunk five common myths and shed some light on the realities of modern finance and ERPs:

Myth #1: ERPs are only for large corporations

Reality: While large enterprises were early adopters, modern ERPs cater to businesses of all sizes. Scalable solutions are available, offering features and functionalities tailored to the needs of growing businesses. In addition, the latest ERPs (like Sage Intacct) are actually just a combination of separate, but connected modules and other systems. In smaller businesses, apps can seamlessly communicate with each other in the same way creating an “ERP”.

For example, one of our smallest clients ran their entire business through Excel, including Finance, payroll, HR and CRM. However, we’ve implemented the same ERP solution that large, multi-national companies with >600 entities, was the right fit for this business.

Myth #2: Implementing an ERP is complex and time-consuming

Reality: Today’s cloud-based ERPs offer streamlined implementation processes with minimal disruption. Business partners (like AWCape) often provide implementation support and user training; ensuring a smooth transition. The current world’s best ERPs implementations are now in months, not years.

Myth #3: ERPs are expensive and require a hefty upfront investment

Reality: Many ERP solutions offer flexible pricing models, including subscription-based options, making them budget-friendly even for smaller businesses. Additionally, the long-term cost savings in efficiency and data accuracy often outweigh the initial investment. Also, the latest ERPs are so user-friendly and configured from the front-end that after implementation, support is much lower.

A great example of this is one of our biggest clients after handholding on a subsidiary go-live, took their primary group company live themselves.

Myth #4: ERPs are rigid and don’t adapt to changing needs

Reality: Modern ERPs are modular, allowing you to add or remove functionalities as your business evolves. They also integrate seamlessly with other applications, ensuring flexibility and adaptability. Also, cloud-native ERPs have multiple releases a year with many new powerful features made available overnight.

Sage Intacct has four releases a year and just two of the many features that went live in the recent release were: SARS VAT 201 direct e-filing and AP automation (automatically extracting invoices from supplier email and creating a draft bill).

Myth #5: ERPs eliminate jobs and automate away human interaction

Reality: ERPs empower team members by automating repetitive tasks, freeing them to focus on strategic initiatives and value-added activities. They also improve collaboration and communication across departments.

Here’s the truth: ERPs can be powerful tools for streamlining your financial operations, gaining valuable insights, and making data-driven decisions. Don’t let these myths hold you back.

Some additional tips include:

* Research different ERP solutions and compare features based on your specific needs and budget. G2 and Gartner are great resources for this.

* Read case studies and testimonials from businesses similar to yours.

* Consider a cloud-based ERP for its scalability and ease of implementation.

* Seek expert advice to guide you through the selection and implementation process.

By separating fact from fiction, you can make informed decisions and leverage the power of finance and ERPs to achieve your business goals.