Shortlist UK’s Best ERP For Small Business (SMBs)
Easily find small business ERP that meets your budget, implementation & usability needs when switching from spreadsheets & accounting tools.
What Do You Need An ERP Software For?
What Is ERP For Small Business?
ERP for small business is an enterprise resource planning system designed for SMBs (or SMEs) with 20 to 100 users. These solutions provide manageable payment structures, quick implementation times, easy integrations with existing cloud-based applications, and personalised support
Although the deliverables of small business ERP are similar to those of enterprise-grade tools (collaboration, productivity, and efficiency), it does so in an agile, cost-effective, and user-friendly manner.
Compared to more enterprise-focused ERP Software, SMB ERPs have three qualifying factors:
- They’re a tier 2 ERP system
- They are cloud-based (or hosted)
- They’re designed to easily migrate data from spreadsheets and SMB accounting tools
The best ERPs for small businesses focus on reducing manual input through automation and bringing together all operational data into one system. These systems are ideal for SMBs that have outgrown spreadsheets and outdated systems with distinct scaling requirements.
Instead of providing a tier 1 suite of modules, these solutions focus on core SMB modules like accounting, inventory, sales, CRM, and purchasing.
7 Best ERP Systems for Small Businesses
Enapps
A powerful small business ERP system for manufacturing, construction, and distribution operations. Key modules include accounting, CRM, manufacturing, and real-time reporting.
Implementation time: 4 weeks to 9 months
Oracle NetSuite
A cloud-based ERP platform offering integrated accounting, inventory, CRM, and reporting tools, designed to support growing small businesses with multi-department operations.
Implementation time: 24 hours to 4 weeks
Flowlens
A combined MRP/ERP and CRM solution for small to mid-sized businesses. It is designed to eliminate paper/spreadsheet-based workflows and simplify compliance with common standards, such as ISO 9001.
Implementation time: 4 weeks to 3 months
Statii
A cloud-based, customisable ERP designed to help SME manufacturers manage everything from front-of-house customer and supplier documents to shop-floor production management.
Implementation time: 7 days to 4 weeks
MRPeasy
A cloud-based MRP system tailored for small manufacturers, offering production planning, inventory management, purchasing, and CRM in an affordable platform.
Implementation time: 1 to 3 months
Odoo
A modular, open-source ERP system that lets small businesses customise and scale operations with integrated apps for accounting, sales, inventory, CRM, and more.
Implementation time: 1 to 3 months
Acumatica
A cloud-based ERP platform designed for growing small and mid-sized businesses, offering flexible modules for finance, inventory, CRM, and project management.
Implementation time: 1 to 4 months
What Do You Need An ERP Software For?
What Is the Cost of ERP For Small Business?
Small business-focused ERP systems range from £100 to £200 a month per user. This equates to roughly £2,000 to £15,000 TCO a year, depending on the number of users. These costs factor in:
- Software license/subscription
- Integration fees
- Implementation fees
- Further training and support fees
- ERP consultant hire
These figures are relevant to tier 2 cloud-based ERP systems, which 55% of SMBs implement over hosted or on-premise solutions. The total cost of ownership for cloud-based ERP Software is 20–30% less than that of an on-premise ERP. This is due to minimal upfront capital expenditure (CapEx) and lower ongoing operational expenses (OpEx).
Expense | Type | Avg. Cost |
|---|---|---|
| Software subscription (per user per month) | Ongoing | £20 – £200 |
| Upgrades and maintenance | Ongoing | Included – £0 |
| Integrations | Ongoing | Included – £0 |
| Modules (basic suite) | Ongoing | Included – £0 |
| Implementation | Upfront | £8,000 – £25,000 |
| Existing data migration | Upfront | £1,000 – £5,000 |
| Customisation | Upfront | £2,000 – £10,000 |
| Training | Upfront | £0 – £5,000 |
| Implementation consultant (fixed rate) | Upfront | £1,000 – £15,000 |
Quick implementation turnaround and lower CapEx mean SMBs can expect to see an ROI on their ERP system within 2.5 years.
ERP Modules and Features For Solving SMB Challenges
Small business ERPs focus on addressing the biggest challenges facing SMBs through modules and capabilities. The five biggest pain points of any small business are:
- Disconnected data and silos
- Time spent on manual processes resulting in human errors
- Lack of growth opportunities (30% of businesses implementing ERP put this as the leading factor)
- Poor cross-team collaboration
- No real-time data visibility
Some ERP vendors offer limited modules for their small business solutions in comparison to the full suite of enterprise solutions. But these modules are essential for focusing on core business functions. They include:
- Accounting/Financial management
- Sales
- Product management
- Project management
- Inventory and warehouse management
- HR
- Manufacturing
- Reporting and analytics
Most vendors also offer easy integration capabilities through APIs and connectors. These include integrations with platforms for e-commerce like Shopify, CRM systems, HR, Business intelligence, and Accounting like QuickBooks.
How Long Does ERP Implementation Take For Small Teams?
Small business ERP Software implementation is 40% faster than traditional on-premise projects, ranging from just 24 hours to 6 months.
Larger ERP implementations are complex and can take up to 2 years, while small and medium-sized business (SMB) solutions can be rolled out almost instantly because of cloud-based and hosted models.
Other factors contributing to a quick implementation timeline include fewer customisations, a smaller amount of data to migrate from spreadsheets, and vendor experience.
What Are the Risks of ERP Implementation For Small Teams?
75% of total ERP implementations end in failure due to delays, overruns, and poor communication. For small businesses, the resources put into finding and deploying the right solution increases the importance of implementation success.
To ensure successful rollout, SMBs need to be aware of implementation risks like:
- Operational downtime during implementation
- Budget overrun
- Underestimating complexity
- Inadequate staff training and vendor support
- Data migration errors
4 Tips For SMB ERP Implementation Success
- Opt for a phased rollout: Gradually rolling out core features instead of a big bang approach can reduce operational downtime.
- Assign a project lead: Implementation needs clear ownership. Whether hired internally or externally, have one person lead the project.
- Cleanse existing data: Avoid migrating poor-quality data into your new system. Duplicates, errors, and missing fields can create big problems.
- Ensure vendor assistance: Your ERP vendor will have experience in small business implementation. They’ll know what works best for you.
2 Real-World Small Business ERP Success Stories
1. Quality Material Handling x Acumatica
The Situation
Quality Material Handling had been relying on Sage 100 financial software alongside paper and spreadsheets for their inventory, invoicing, and sales operations.
As a result, accounting operations were months behind schedule, with a lead salesman refusing to use their Sage system as it wasn’t user-friendly.
The Results
The company deployed an SMB-focused ERP solution in Acumatica. This led to:
- Increased viability across all operations
- Reducing reporting time from hours to minutes
- Improved inventory accuracy
- Lowered month-end closing to less than 11 days
- Eliminating paper and spreadsheets from all business functions
2. EcoBags Products x NetSuite ERP
The Situation
EcoBags Products struggled with manual processes and disconnected data. They manually managed sales, leads, and invoicing tasks. They also used multiple systems – QuickBooks, Mail Order Manager, and fulfilment – for different data types that didn’t communicate with each other.
The Results
The company implemented NetSuite ERP, a cloud-based solution that works excellently for small business operations. It enabled them to:
- Access data from anywhere at any time
- Receive a discount on their software licences
- Automate transactions by integrating an electronic data interchange (EDI)
ERP For Small Business FAQs
Can Existing Systems Be Easily Integrated With a Small Business ERP System?
Yes, modern ERP vendors make it easy to integrate existing applications, particularly cloud-based solutions. That includes accounting software, CRM tools, e-commerce platforms, and payroll software.
Existing systems can be integrated with APIs, pre-built connectors, or middleware platforms. Choosing a vendor with published integration partners or applications will also speed up the process.
What Support and Training Do Small Businesses Need When Implementing ERP?
Efficient training and support are key to successful ERP take-up. For small businesses that may not have an IT team, this stage is crucial. When looking for an ERP small business solution, ensure the vendor provides support and training in the form of:
- In-person, on-site training
- Detailed documentation, knowledge base, and illustrations
- 24/7 chat support
- A phased implementation plan
Is a Tier 2 ERP System Best For SMBs?
Yes, tier 2 ERPs are a more affordable and flexible solution designed for small to medium businesses. Tier 2 systems are generally cloud-based, support scalability, and provide the capabilities to easily switch from spreadsheets.
How Easy Is It to Migrate Data From Spreadsheets to a New ERP System?
Vendors’ supporting spreadsheet upload features and import templates simplify the process of data migration from spreadsheets to ERP. Along with dedicated support and batch migration, this makes the process relatively easy.
However, the risks lie in how good the data is. If you have poor-quality data, mismatched fields, or inconsistent formatting, the process becomes trickier.