Financial management in SMEs is not easy. You’re at that exciting point of your business journey where you’ve found your rhythm and become profitable, and you hopefully have some basic accounting software set up to handle the figures. However, there’s always room for growth and chances to push your company to new heights. To do so, you need to be sure your team has the right financial management solutions for SMEs to handle the job.
Is It Time To Upgrade To Something Better?
As an SME, you might assume that you only need a basic package of financial tools to get by. Or, you may end up focusing on the more affordable solution for your young business. The problem here is that you might actually be choosing the least cost-effective solution and the most restrictive. Sooner or later, you’ll find that it pays to upgrade to a more comprehensive solution.
One example is the SMEs switching from affordable, simplistic packages, like Xero, to something more extensive, like Netsuite and its full Enterprise Resource Planning tools. Both programs have their advantages for the right users, and it pays to check out direct Xero vs Netsuite comparisons to learn more. As effective as Xero is when you’re starting out, it might be time to switch to Netsuite. Here are a few reasons why.
Improved Functionality
The better the system, the more features you should be able to take advantage of. This can only improve your prospects moving forward as you gain greater insight into the financial past, present, and future of your business. You’ll be able to make more informed decisions thanks to improved analytics and forecasting. There are lots of different tools that systems such as Xero and Netsuite use. The difference is that Netsuite’s ERP program offers a lot more than Xero.
Accounting
Accounting tools are the most important for any financial management solution. You need effective software that can tell you what’s going into the business and what’s going out. User-friendly options with easy ways to upload invoices and receipts go a long way in keeping your records up to date. The figures should make it easy to see how profitable you are and what to expect from the month ahead.
Financial Reporting
Comprehensive financial reporting tools take this further with more detailed insights into the company’s performance. Again, real-time solutions are essential here. The sooner you know about a problem and its impact on the company, the sooner you can do something about it. These reports should be available with most financial management programs. However, the quality of the data and the user-friendly interfaces will improve when you upgrade to better systems.
Inventory Management
Beyond that, you can also get some helpful inventory management tools with ERP systems. This can give you real-time information about what you have in stock and what you need. Real-time reporting makes a big difference because it helps you see your business as it is at that moment. Potential problems are going to be much harder to miss, reducing issues with supply and demand. The right tools make it easier to plan for orders, budget for supplies, and improve supply chain management.
E-commerce Tools
Another helpful set of tools comes with e-commerce solutions. You won’t see this with basic financial management tools, but any help with online stores, secure checkouts, and customer data is a bonus. Perhaps your current store is a little too basic, and an upgrade is just what you need to drive sales and beat the competition.
Customer Relationship Management
Finally, there’s the potential to learn more about your customers with CRM solutions. This additional package takes ERP systems like Netsuite away from being pure financial tools and elevates them. The best way to improve your profits as a commercial or service-based company is to better understand the behaviors and needs of your buyers.
Beneficial Scaleability
Don’t worry if this seems too complex for a business of your size right now. It’s always better to have room to move and grow than to feel confined by something that doesn’t serve its purpose. Some features might not be that helpful right now, but that doesn’t mean they won’t be in the future as your business expands. Besides, the best scalable solutions are adaptive enough to handle that.
Scalability through Netsuite is highly effective for growing businesses because of its adaptability. When your company is at peak performance, you can take advantage of the most comprehensive solutions and bonuses. Then, when there’s a natural lull in your business, such as a seasonal lack of demand, you can temporarily downgrade.
Essential Cost-Effectiveness
Then, there’s the ever-important issue of costs. This is the final hurdle for any SMEs looking at upgrades. Can you really afford it, and will those higher up the chain of command go for it? Well, with the right pitch explaining the long-term benefits, they should. The upfront costs of the more extensive programs are going to be more expensive than your basic package. You’d expect that with any tiered subscription-based program, so expect that here too.
The difference comes in what you get for your money. The investment you make in signing up for these solutions can ensure that you end up with a more efficient business model with improved profit margins and substantial growth. Also, that previous factor of scalability means that you should be able to downgrade your plan during slower months to make additional savings.
Don’t Miss Out On Better Financial Insights
The simple question you need to ask yourself here is whether your current financial management solutions for SMEs are enough. If you feel like you should be getting more for your money or that your system is restricting your growth, talk to an expert ERP and analytics solutions team today. Consult with their advisors about the potential for switching to Netsuite and see how they can help you get set up. It could be the best financial decision you make for your company for a while.