Last updated on July 15th, 2022
Cloud ERP software is becoming a necessity in today’s high-paced business world. Many businesses share apprehension regarding moving their enterprise management to the cloud because of security problems such as cyber attacks by hackers or competitors.
However, cloud ERP systems are secure in many aspects, and your on-premises ERP software may not be as ironclad as you think. Cloud ERP also increases users’ accessibility to the system through the Internet and allows them to transfer and share data across every department, as well as externally.
Leading cloud ERP systems also come with disaster recovery plans and backups that reduce software interruptions. Here are ten signs that it’s time to upgrade to a cloud ERP.
1. Cost Reduction
Cloud ERP is cost-effective for several reasons. One: it’s less costly to implement than models hosted onsite.
Moving to the cloud saves many hours of work. First, your business is up and running without downtime because there’s no hardware to set up. There’s virtually no server maintenance, so that’s one more task eliminated for your busy IT department.
Any software updates or upgrades don’t interrupt your business because they all happen on the cloud. Essentially most costs associated with system maintenance are eliminated.
2. Increased Security
Old legacy systems don’t have as many security controls. With cloud ERP, administrators have complete control over who can access what information, and this reduces the chances of fraud. Using administrative controls to set roles and permissions completely eradicates the risk of unauthorized usage of ERP software.
ERPs such as Sage 100 on the cloud also includes secure gateways for people to access the system remotely. There are document management procedures that prevent the downloading of any sensitive information as well as archival of this information on the business site to keep it from ending up with the wrong people.
Moreover, a document retention policy is included too so that your business always remains in compliance with government standards.
3. Issues with Regulatory Compliance
Speaking of compliance, legacy systems usually aren’t HIPPA or GAAP compliant. They have insufficient audit trails and don’t use IFRS books. Regulations for accounting practices often change, and if your system isn’t up-to-date, you subject your company to risk.
Cloud ERPs update regularly and incorporate new compliance updates and features.
Regulatory and financial compliance requirements continue to become more stringent, and this is a considerable challenge for many companies. Legacy ERP systems probably can’t continue to meet those requisites.
4. Remote Access
As previously mentioned, cloud ERPs allow you to access the business process remotely. These ERPs allow employees to work from anywhere. The platforms have user interfaces and mobile functionality designed for mobile devices and phones.
Any employee who is out of the office for a meeting or training can still log into the system and answer any new questions as they come up. Your employees no longer need to be tied to a physical location.
5. The Business Relies on Numerous Manual Processes
Unfortunately, there is too much room for error with manual processes. These processes include check signatures, paper approvals, non-central billing processes, reliance on Microsoft Excel, and more.
Cloud ERPs reduce errors and establish new automation methods that help all areas of your business.
6. Difficult Reporting
Reporting for management is becoming more demanding. Heavily relying on Excel spreadsheets is a recipe for disaster. Excel reports often contain at least one error. It’s too risky to rely on Excel, and these spreadsheets take a lot of upkeep.
When your reports are too cumbersome to manage and generate, you should be looking to move to a cloud-based ERP system. It offers a centralized data management environment where the reports can be updated in real-time.
7. Excessive Maintenance Costs
If the costs for your old ERP system are increasing, that’s less money to invest in scaling your business. Plus, few IT budgets grow every year. IT usually has the same budget every year, and maintenance costs for your old records management system can max it out.
When you’re overspending to upkeep your old system, you’re not only blowing through budget unnecessarily, but you’re also spending more time than is necessary.
Remember, time = money!
8. Your Employees are Complaining About the Old ERP System
When all of your employees complain about the mobility and usability of your old system, even the older generations, it’s time for a change. Their complaints likely mean that the legacy ERP isn’t performing well in critical areas, which slows down work productivity.
9. Dependence on Multiple Systems for Financial Statements
If you spend hours pouring over reports from various systems to get the key data needed to run financial statements, it’s time for a change. Older ERP systems are often not compatible with other software, so you need multiple systems to provide you with the information that you need.
Data integration is smooth and seamless with a cloud-based ERP.
10. Customer and Sales Experience are Deteriorating
As businesses scale up, one of the most significant challenges is inventory management. It’s critical to ensure that the correct number of products are in stock when they’re needed. When you manage all of your customer information, sales, and inventory in separate systems, you can have serious problems that ripple through the company.
A cloud ERP system lets the staff access current status on sales, products, and customer data no matter where they are. It allows customer service reps to answer customers questions with the most up-to-date information.
Customers can log into their accounts to view the status of the purchases while managers in the warehouse know when they’re running out of stock so that they can re-order. Your business runs smoothly and efficiently on a cloud-based ERP system.
Old legacy ERPs don’t allow you to keep track of your business as needed. You need multiple systems to run reports, and it takes forever to update information in the system.
If cost concern is keeping you from making the switch to a cloud ERP, it shouldn’t. Consider that it costs less to implement and maintain cloud-based systems as compared to on-premises ERPs, and it becomes clear that the transition is overdue. Your data is safer, your customers and sales experience will improve, and you’ll cut down on unnecessary reporting systems and maintenance costs.
What are you waiting for?
Note: This a guest post from Matt Satell of BetterBuys. The author’s views are entirely his own and may not reflect the views of Ace Cloud Hosting.
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