Best ERP Software for Small Business in 2025

Enterprise resource planning (ERP) is often associated with large enterprises—companies that deal with nationwide operations, have extensive customer bases, and run complex processes day in and day out. However, as more companies go digital amidst industry shifts brought about by the coronavirus pandemic, many ERP platforms have evolved to cater to businesses with smaller-scale operations.

After all, ERP offers plenty of benefits to small enterprises. It can help them unify operations, eliminate risks and roadblocks that manual processes can pose, and more. So, in this guide, we will walk you through exactly what ERP is and what it can do for your small business as well as some products that you can consider.

When it comes to business, it’s never a good idea to leave things to chance. This is especially true in the case for startups, small enterprises, and growing companies with limited resources. So, before you invest in an ERP software for small business, it is best to take advantage of the free trial plans and demos that software providers have to offer.

Through these free trial plans, you can check out your prospective platforms’ features first-hand. In this way, you can determine how they could be helpful to your operations, identify potential issues, as well as compare each product more closely. To get you started, we highly recommend that you check out the ERP software for small business that currently top our rankings – NetSuite ERP, Method:CRM, Sage Intacct, and SYSPRO.

ERP software solutions are not just for manufacturing companies and large enterprises. It is a great tool for different kinds of businesses that need to efficiently manage their resources and ensure that their processes are running as smoothly as possible. Some examples include:

• Startups. New businesses transitioning from manual workflows and spreadsheet-based processes can benefit from ERP software created specifically for small companies. These can give them better visibility over their operations and allow them to have a more data-driven approach to their day-to-day processes. Plus, as it records all important company data, users can better pinpoint any areas for improvement and take the guesswork out of process development.
• Growing companies. ERP tools are also great for small businesses that are growing their customer base and are looking for a platform that can help them as they expand. These can allow them to organize their customer information as well as keep company departments from becoming siloed as they grow. ERP software can also improve the accessibility of data across an organization.
• Small enterprises. Small enterprises already use a variety of complex programs to manage their resources. However, shifting from platform to platform and maintaining several solutions for their processes can slow down operational efficiency. Using an ERP system can bring all the functionalities they need in one unified hub. As such, they no longer need to rely on separate apps and risk overlooking data during everyday business processes.

Among the best ERP software for small business on the market today are:

• NetSuite ERP. A cloud-based ERP system for businesses of all sizes. It has end-to-end features for financial management, inventory management, demand planning, accounting, and payment management.
• Method:CRM. A software that combines CRM and ERP functionalities, this integrates completely with QuickBooks. It has unique features like the method integration engine, transaction syncing, customer data storage, and document management.
• Sage Intacct. A straightforward cloud-based solution that can manage basic accounting, fixed asset management, project management, and workflow management. It is created specifically for startups, small companies, and mid-sized businesses.
• SYSPRO. A powerful ERP tool for manufacturing companies. This comes with a comprehensive toolset that covers everything, from accounting and inventory tracking to supply chain planning and forecasting. It also has fraud detection tools and granular access controls.
• Tipalti. Primarily a payment automation and management platform, Tipalti also has tools for tax compliance, supplier management, affiliate program management, ad network performance tracking, and more.
• Odoo. An open-source ERP and CRM platform, Odoo offers a fully-integrated and highly customizable interface. Users can easily configure the system so that it perfectly aligns with their operational requirements.
• Scoro. A work management platform for small to medium enterprises, it has tools for calendar management, project management, customer management, and financial management. Moreover, it has file management capabilities, a company news feed, as well as budgeting tools.

Not all ERP systems are created equal. While they all share the same core functionalities, there are ERP software for small business built for specific users, business types, or operational needs. These types of tools can be categorized as follows:

• Web-Based ERP Software. Also called cloud ERP systems, this type of software can be easily accessed on any internet-enabled device through a web browser. As such, it is flexible enough for teams with remote workers or field workers. This can be open-source or hosted by a vendor, depending on the product you choose. In most cases, these are charged through subscription packages and updated regularly by the vendor.
• On-Premise ERP Software. These systems require users to install the platform on their devices. Also known as legacy systems, this type of software can only be accessed on devices where it is stored so it can be more reliable and it is great for users that are concerned about data security. These often have higher upfront charges so it can be a little more expensive for smaller businesses.
• Hybrid ERP. These types of platforms can be deployed both via the cloud and on-premise. Meaning, users can enjoy the reliability of an on-premise solution as well as the flexibility that a cloud-based software can provide.
• Industry-Specific ERP Software. Other than software deployment, ERP platforms can also be categorized by verticals. There are ERP systems designed for specific industries – retail, manufacturing, logistics, and the like. With these, companies can get access to features that are unique to their operational needs.

Business ERP software are designed to optimize business processes. So, regardless of the type or size of business a platform is create for, ERP systems share plenty of core functionalities:

• Financial Management. ERP platforms are equipped with tools that can track, manage, and analyze your business’ finances. This involves budgeting, procurement management, financial forecasting, risk management, as well as real-time analysis of transactions.
• Workflow management. This module is designed to help businesses get a bird’s eye view of their active, pending, and completed tasks. From there, they can simplify task delegation, automate workflows, and reduce pipeline bottlenecks.
• Accounting. ERP software, in many cases, have basic accounting tools. These include general ledgers, accounts payable, accounts receivable, invoicing, and billing tools. More advanced ERPs may also include tax preparation features.
• Inventory Management. ERP systems should have a way to track inventory levels across multiple warehouses. This should allow users to monitor when certain products need restocking so that all supplies needed for operations are always available.
• Payment Processing. Some ERP software have payment processing capabilities. This means, facilitating transactions is easier than ever. It also enables businesses to accept different payment options, from credit card to payment gateways.
• Human Resource Management. ERP systems should also enable you to manage your most important resource—your employees. This could include time tracking, performance assessment, as well as payroll processing.

Small enterprises, given the scale of their operations, often believe they are not yet in need of an ERP software. After all, it is commonly used by larger businesses with more manpower, a larger customer base, and more complex processes. However, an ERP platform offers plenty of benefits to SMEs. These include but are not limited to:

• 360-Degree View of Operations. An ERP system gathers all the information you need to run your operations. From the employees in charge of tasks to the information of your suppliers to the day-to-day transactions of your business, this will enable you to monitor every single aspect of your supply chain.
• Increased Employee Accountability. As all processes are handled in one unified hub, managers can easily see who is working on what. This increases accountability in the workplace and helps managers ensure employee efficiency.
• Improved Operational Productivity. As ERP systems give you visibility into your operations and boost the efficiency of your employees, you can also improve overall operational productivity. Workflows are automated so workers can devote more of their time to attention-demanding tasks and, at the same time, you can ensure that pipelines move as seamlessly as possible.
• Reduced Risk of Operational Bottlenecks. ERP systems can also help users plan ahead—from budgets to workflows. This allows businesses to analyze any potential bottlenecks that need to be addressed before they affect operational productivity.
• Better Insights into Company Data. ERPs continuously collect data on your business performance—from the speed of your turnaround times to your monthly profits to your employee performance. With this, you gain better insights into day-to-day operations so you can take the guesswork out of critical business decisions.
• More Efficient Resource Management. As ERP platforms are equipped with inventory tracking, human resource management, and scheduling tools, they can help you manage all of your operational resources across the board. You can ensure that no employee is overworked or underutilized, that all supplies are being allocated properly, and that time is being managed as efficiently as possible.

Rapid Cloud Acceleration
The COVID-19 pandemic was pivotal in the acceleration of digital transformation across industries. With more and more businesses migrating their processes to the cloud, it only makes sense that ERP software providers will try to meet this demand. Aside from the shift in work standards, many businesses have also come to realize the many benefits that cloud-based platforms have to offer. For starters, cloud-based can mean always-updated functionalities, lower maintenance costs, as well as higher accessibility. Beyond this, small businesses can benefit from lower subscription fees.

More Powerful Mobile User Interfaces
Recent data reveals that mobile phones account for roughly 50% of global web traffic. Moreover, with more employees working from home, it is no longer surprising for ERP software providers to improve the mobile versions of their systems. This will allow employees to have easy access to their work data wherever they may be, accelerating approvals and performing critical operations even when they’re outside the office. Mobile ERP also makes it easy for field employees to gain access to work data and even capture important information from the field.

Increased Data Security Options
While COVID-19 may have accelerated the migration to the cloud, it has also caused cybercrime to increase exponentially. In fact, as of 2022, experts say that cybercriminals have the ability to penetrate roughly 93% of company networks. This said, we can only predict that ERP software developers will pay more attention to reinforcing data security for their apps. Users can look forward to features like multi-factor authentication, encryption, SSO, and strict permissions as staples rather than extra features in many ERP platforms.

• Steep Learning Curve. Perhaps one of the most critical issues that small businesses may encounter with their ERP platforms is the steep learning curve. While most ERP software for small business are built with straightforward interfaces, these can still be overwhelming and hard to navigate for users who have no prior experience with this type of software. As such, it is best for first-time users to invest some time in learning the ins and outs of the platform before implementing them for operations.
• Technical Issues. ERP tools are designed to handle a multitude of operational workflows into one unified hub. However, the technical demands of running all these processes in one platform can be daunting. Meaning, users should expect to encounter technical issues every now and then. To mitigate its effects, however, it is advisable for users to prepare their internal network for ERP implementation. This could include improving their internet connection and ensuring that your bandwidth can handle the system.
• Scaling Problems. ERP software for small business often offer bare-bones functionalities, considering that they are meant to handle small-scale operations. However, as your business grows, there might be a chance that your ERP tool cannot accommodate the advanced functionalities or more powerful processing capacities that your company will need. So, when choosing an ERP, it is best to find a vendor that can provide you with a scalable solution, and scalable subscription packages to match.