Selecting appropriate accounting software in India is essential for organizations as it facilitates financial management, revenue and spending tracking, correct trial balance creation, compliance with financial regulations, invoicing and billing management, and financial reporting provision. Accounting can be daunting for organizations such as wholesalers, retailers, distributors, SMEs, and MSMEs, and without an accounting team, it can be challenging to manage financial matters. This article intends to assist businesses in selecting the most suitable accounting software that corresponds with their objectives, is framed within their environment and positions them for sustained success.
ERP
An ERP system is a comprehensive suite of applications that oversees various business functions, including accounting, financial management, sales, client service, processing orders, inventory, production, and service delivery. Implementations of ERP typically prioritize finance and accounting but may commence with any functional area that poses significant challenges. ERP systems aggregate data throughout the organization, functioning as the company’s authoritative record system. The main benefit of an enterprise resource planning (ERP) system is that it may help businesses with things like resource allocation and planning, automating manual operations, and improving internal communication and cooperation. ERP software facilitates more informed decision-making and improves performance by offering a singular source of precise data.
An overview of the ERP market in India
With one in four businesses using a cloud approach in 2022, the Indian ERP industry saw tremendous expansion. Due to its qualified labour, cheaper hardware prices, lower internet connectivity, and lower upfront and maintenance expenses, the industry is becoming more and more attractive. By 2027, the Indian ERP market share is anticipated to have grown from its 2020 valuation of $375.2 million to around $576.2 million. Manufacturing, pharmaceutical, culinary, chemical, automotive, oil, steel, and textile companies dominate the market. However, cement, construction, and power firms also adopt ERP solutions. Several Indian schools are also implementing centralized ERP systems to do away with paper records for administrative duties. It is anticipated that the market will reach around $576.2 million.
ERP Software Selection Process
Recognize Your Business Needs
• Evaluate workflows, identify inefficiencies, and articulate objectives.
• Accounting software automates accounting, procurement, inventory management, project management, and CRM.
• Cater to industry-specific needs in healthcare, retail, and manufacturing.
• Understand budget and long-term financial objectives.
• Involve stakeholders like IT, finance, and HR to prioritize and understand departmental requirements.
Assessing Existing Resources:
• Evaluate the financial and human resources accessible for the ERP transition.
• Evaluate internal IT proficiency and budgetary resources for new licences and customization.
Comprehending the Present Business Model:
• Grasp your business model, encompassing e-commerce, international sales, intricate tax accounting, or global supply chain management.
• Comprehend the market dynamics of how your product or service is marketed and sold.
Compiling a List of Objectives for the New System:
• Determine the business goals for transitioning to a new ERP system.
• Identify key factors such as surpassing the current technology stack, encountering deficiencies in the present ERP, or requiring automation.
Assessing the Strategic Alignment:
• Evaluate the strategic alignment of the new ERP with your current operations.
• Assess whether the new system is compatible with the needed integrations and can execute all necessary functions.
• Identify industry or business-specific attributes to enhance your organization’s performance.
Comprehending the Role of ERP in Goal Attainment:
• Record your objectives for expanding your organization or enhancing financial management.
• Ascertain that the system can accomplish these objectives.
Obtaining References:
• Solicit references from alternative organizations or reputable individuals.
• Consult internet review platforms for technical evaluations.
Identifying Sources of Acknowledgement:
• Examine evaluations and accolades from prominent figures in technology and business.
Vendor Evaluation:
• Assess the acquisition of ERP licences directly from the vendor or through authorized third-party resellers.
• Vendors frequently serve as qualified consultants for specific ERP systems.
Comprehending Customizations:
• Tailor your accounting software in India instance to optimize return on expenditure.
• Identify necessary customizations and available options.
Determining the Authentic Cost:
• Acquire services from an accounting software consultant and installation professional in India to better comprehend actual expenses.
Providing an Accurate Timeline:
• Define company requirements, select the ERP system, and choose a vendor.
• Attain a comprehensive understanding of the implementation timetable to prevent resource reallocation.
ERP Software Implementation Challenges in India
• Expensive: Although ERP accounting software is costly and potentially outdated, many companies—MSMEs in particular—are reluctant to implement them.
• Complexity: The need for employee participation in ERP deployment may discourage certain staff members from embracing the change.
• Risk Appetite: Some firms may resist the lengthy and intricate ERP adoption process.
• Technical Difficulties: Upgrading servers, computer gear, and internet connectivity may be necessary to deploy legacy ERP. These problems may be avoided with cloud-based ERP solutions.