World MSME Day 2021: 5 Burning Challenges that the best ERP software can help MSMEs overcome

The Micro, Small and Medium Enterprise segment acts as the engine of the Economy. MSMEs contribute significantly to industrial, economic, technological and regional development in both – developed and developing economies. However, it is still under-supported.

With a volatile economy and solid competition confronted by a globalized market eating up local players, MSMEs now encounter different key issues which has made their survival and growth challenging. This is why there is an urgent need to adopt technologically superior methods of doing business.

ERP Software like SAP Business One will help the MSME segment manage everything from accounting to CRM to internal controls and much more. Some exciting things you can do with a modern and affordable ERP like SAP Business One include: Automating Business Processes, Automating Sales Orders, Generating Smart Invoices etc.

5 Burning Challenges that the best ERP software can help MSMEs overcome

Most MSMEs work in a dynamic manner demanding an agile workforce, where the company faces several internal and external challenges. The organization’s flexibility to respond to these challenges comes from characteristics such as lack of resources, stringent budgets, delay in responding to changing market situations and others that make MSMEs prone to failure.

Here we talk about 5 such common yet burning challenges that MSMEs face and how a modern ERP like SAP Business One offering the premium experience with affordability can help overcome them successfully.

Process Inconsistencies, Data Silos & Lack of Standardization

Business processes can become inconsistent or disjointed as departments in an MSME typically tend to use different software for tracking and recording information. In addition, such process inconsistencies adversely affect standardization of business practices and processes including the expertise and organizational infrastructure that is beneficial for any growing business.

On one hand each department that carries the load for its data maintenance finds it unnecessarily cumbersome and costly. On the other hand, they tend to miss out the added value that standardization and industry best practices can bring for their business.

Such inefficiency and inconsistency of processes arising due to the lack of a centralized comprehensive system reflects in increased operational expenditure, production and delivery delays, communication gaps, transactional inconsistencies, and duplication of data.



Single comprehensive solution offering Localization

Inconsistent business processes can result in huge losses or time delays for any SME business. To avoid anticipated losses, many business leaders have successfully turned to SAP Business One as a robust ERP system. It is equipped with a powerful Digital Core for SMBs, Business Modules & Functions and Analytics in a single and consistent platform.



The purpose of SAP Business One is to provide a comprehensive, 360-degree view of the ins and outs of the business. After SAP Business One implementation each business unit remains accountable for local data maintenance, but with one fundamental difference—there is a single system of record open to all which can be regulated based on the role of the user and their designation.

Not only that, it also offers the scope of Localization painlessly meeting with specific legal business requirements and common business practices within your industries and markets. The primary focus of the localization effort is to enable your MSME business to remain competitive within strategic industries and currently targeted markets.

VC ERP has successfully helped over 300 MSMEs carry out their digital transformation with an SAP ERP with the best of localization. SAP itself currently provides localization for more than 20 countries. It supports MSMEs to run business with SAP Business One according to the international standards and local requirements.

Struggle accessing and consolidating data with delayed reporting Mechanisms

SMEs struggle to report on business performance in real-time. Even seemingly minor disconnects can quickly result in missed opportunities and slow decision-making which is where an ERP system can be of assistance. An ERP system like SAP Business One gives you access to all business information anytime and from anywhere meaning employees always have access to real-time business insights.

Accurate reporting on day to day operations in the company is crucial to know where you stand and how far you are from your goals.

Lack of timely reporting can create a snowball effect, hurting monthly cash flows and impacting other financial reports. As a result, you may find yourself in the bad books of the auditors. But, No MSME wants that! In addition, some business owners create reports based on data retrieved from spreadsheets and receipts, while others use automated systems.



Remote Access to Business Data with Real-time Analytics

Tide over difficulties brought forth by remote working with a comprehensive cloud ERP Platform like SAP Business One. With a dedicated ERP system, companies get more than automated, accurate financial statements, daily MIS reporting and other department performance reports as and when needed.

Make fact-based decisions right when they happen by accessing the real-time business information with SAP Business One, analytics powered by SAP HANA. This lightning-quick in-memory solution for small business can help you run real-time reporting and analytics – for instant insights, faster responsiveness, and a sharper competitive edge.

You can:
• Access real-time business insights – for faster, smarter decision making
• Empower employees to create standard and ad hoc reports with ease
• Generate interactive reports in seconds – no delays, no waiting
• Enjoy the power of the SAP HANA platform, priced for small business
• Reduce your reliance on consultants and IT for reporting needs
A modern financial reporting solution that SAP Business One is equipped with delivers real-time financial analysis and modelling across every dimension of your business for detailed insights into corporate performance and improved decision-making.



Difficulty Coordinating and Communication Gaps in Teams

All small and medium businesses struggle with establishing a smooth fine-tuned process where team members take the onus of notifying others when the task is discharged. Failing to notify on time can create crisis that could otherwise have been mitigated often leading to critical operational failure. Most importantly, it becomes difficult to track what went wrong and just who to hold accountable.



Smart Alerts for Fine-tuned Communication and Transparency

SAP Business One already comes equipped with a Smart Alerts feature. That’s why there are pre-defined and user-defined alerts offered in SAP Business One that send smart alerts on desktops and mobile devices when a transaction occurs. The smart alert mechanism spans across different business functions; therefore, you can use these smart alert notifications to keep your teams in loop, functions transparent and accountability where it is due. VC ERP Consulting has developed Xtreme Smart Alerts Add-On that is the extension of this automatic feature.

This add-on is designed in such a way that it sends customized alerts to its users via mobile devices when they are not connected to their systems. The main idea behind this add-on is to provide information to the users regardless of their physical availability of time and place.

It easily sends alerts directly from your ERP system on Whatsapp, SMS and Emails with hordes of other features. You can read more here: SAP Business One Add-Ons



Finance & Accounting Operations and Reporting Challenges

Getting your Finance and Accounting operations meticulously accurate is a pre-requisite of running a successful business. However, the sheer number of resources, budget and time that goes beyond maintaining your books and discharging a variety of functions can be a daunting task.

Maintaining cash flows, balancing contingent expenses, adhering to compliance and paying regular taxes – all of this while maintaining your Monthly Payroll Cycle – what if everything could be automated? In fact, in our industry-specific experience of years, we have observed that SAP Business One outperforms the standard accounting software on all fronts.



Reduce hours in Accounting with Real-time Accounting & Finance

Real-time accounting, the core component of SAP Business One, is all about automating all key processes including ledger and journal entries, accounts receivable and payables – everything in real-time! No more batching journal entries for posting later! ERP systems from SAP made specifically for SMEs like SAP Business One and SAP Business ByDesign support financial processes with the following key features:
• Automate key accounting processes – journal ledger, accounts receivable and accounts payable
• Get rid of redundant tasks through recurring postings and use posting templates to minimize the chances of errors while posting.
• Simplified taxes using Tax Localization that’s specific to your region
• Managing cash flows, tracking assets, controlling budgets and monitoring project costs
• Reconciling Books, Bank Statements and Payments using checks, cash, credit cards and bank transfers
• Financial Reporting with Analytics using real-time data for business planning and audit reviews

Poor Compliance and Internal Control Issues

Compliance is a crucial function where SMEs often struggle and get things done at the last minute. It exhausts a great chunk of the organization’s peace of mind and productivity.

Deploying an automated compliance management system that lets you setup relevant validations, assign due tasks, track and monitor the progress of pending tasks – all the while reporting the status of all due compliance tasks – can save the day!

Robust ERP System like SAP Business One takes the ease of compliance to another level by building comprehensive library of acts and laws and complete repository of the required documents that makes compliance simple and efficient.



Strong Internal Controls with SAP Business One

Internal Controls are generally found to be hard to implement and expensive to set up and practice. It greatly reduces human errors & potential business losses, protects sensitive data, and brings process driven discipline in the organization. This results in high accuracy of data reporting for the ultimate decision making for the Management / Stakeholders. In addition, SAP Business One makes an excellent choice for the CFO or the CEO to implement governance protocols for internal audit and compliance.

Elements in SAP For SME Solutions to implement strong internal controls:
• Segregation of Duties- Who can Access what?
• Change logs- Who updated the documents and when?
• Access logs- Who logged in, when and from where?
• Document flow/ relationship map
• Workflows and Approvals
• Process validations/ Check Points
If you wish to dive deep, here’s a quick read to help you make the wise choice:

Conclusion

The potential of a powerful modern ERP for an MSME is limitless. Still want to know more about SAP Business One? Read all about it here SAP Business One for MSMEs

VC ERP Consulting comes bearing the gift of the “Premium ERP Experience” at “Affordable Prices” with “Heavy” discounts. If you book your SAP Business One ERP for SME with us between 27th June and 2nd July, you are in for a great surprise.

Now is the time to overcome all the challenges and shine brighter by magnifying the impact of your operational efficiency with the help of a modern ERP like SAP Business One implemented to perfection by SAP Gold Partner, VC ERP Consulting Pvt Ltd.

Book FREE Demo and Consultation today. Get in touch with VC ERP Consulting, award winning SAP Gold Partner, with 20+ years of experience and expertise today for a Free Consultation. Call us + 91 99789 60138, +91 79 48998911 (India), Whatsapp +254 111229970 (Kenya), +1 469 915 6026 (North America) or drop an email at sayhello@vc-erp.com