Previously we have discussed the definition and function of ERP software. Now we will discuss the function and cost referring to the compatibility with Small and Medium Enterprises . Is the software suitable for SMEs?
The more complex the business activity, the higher the demand for transaction processing data speed. However, nowadays we often encounter with SME readiness in implementing the technology to record transactions. The most common reasons they have relate to high cost needed and data security.
What is SME like?. SMEs are businesses with specified amount of assets and labor. According to the Central Bureau of Statistics, the number of workers for small businesses as much as 5 to 19 workers while medium businesses as much as 20 to 99 workers. In accordance to Law no. 20 of 2008 about Micro, Small and Medium Enterprises, which means small business that has assets of IDR 50 million up to IDR 500 million excluding land and building with sales turnover of IDR 300 million to 2.5 billion per year. While Medium enterprises of IDR 500 million up to IDR 10 billion excluding land and building with sales turnover of IDR 2.5 billion to IDR 50 billion per year.
Regarding to the amount of workforce, assets, and turnover per year, the SME scale should be ready to broaden their insight and awareness of technology, also learn the effectiveness and efficiency in financial business management. Right now there are a lot of financial management software business providers offers more advantages. However, do these advantages meet the financial capabilities of SMEs?
In fact to get and apply ERP software, does not always mean high cost. The rapid growth of software developers will meet the business needs in any scales. The software providers also set various prices range from the lowest to the most expensive one, depends on the business scale and type. The software with ERP package usually has more affordable price and suitable for small business. Therefore, price should be no longer a problem for small to medium businesses.
The software price is closely related to the software quality offered. One of the elements in selecting the software is price. Therefore, make sure that low price does not mean low quality. The price should be worth as the attached features. ERP software package for SMEs is developed with very simple facilities, some features are not attached since they do not meet SME requirements. Facilities include:
- Employees, suppliers, and customers data record
- Inventory database
- Sales and purchases.
- General Journal and Cash & Bank
- Ledgers and Financial Statements
- Password database security
The above basic features are considered sufficient for SME needs. When the business grow bigger and needs more complex features, they can require to add new features. The ERP software package that meet the SME needs is like Zahir Small Business Accounting, where the above basic features have attached to this package. Now it’s the time for SME owner to consider the database security and implement accounting software to support their business management to be more easily, quickly and accurately.
