Determine which ERP applications to buy

ERP solutions are generally sold in a suite of modules that can be installed separately. The core ERP software application is accounting; all other modules integrate into the accounting program. A complete ERP software suite should connect every business unit in the company.

I recommend: Netsuite is an online ERP software solution organized around three business units — e-commerce, CRM and accounting — each of which has numerous modules. Solutions360’s q360 enterprise resource planning software suite combines financial management, inventory, asset lifecycle management, project management, document management, service dispatch and sales and marketing.

Hosted ERP solutions

One of the most important decisions you'll make is whether to buy ERP software that runs on your own servers or a hosted solution that resides on the server of the vendor who is responsible for hardware and maintenance. With hosted ERP solutions, you typically pay a monthly fee based on the number of users.

I recommend: Most ERP software solution providers, including Intacct and Epicor, offer both hosted and non-hosted versions.

Choose an ERP software system that is properly scaled to your business size

While most ERP systems are designed for large, even multinational, corporations, several vendors offer solutions targeted to the small, growing business.

I recommend: Netsuite Small Business is one of many ERP solutions that connects all the data across your company. If your company uses QuickBooks, consider using QuickBooks Enterprise Solutions. Intacct Small Business is a suite of applications designed for companies that are migrating from QuickBooks. Included ERP applications are financial management, project management, supply chain management and business intelligence. The solutions in the Microsoft Dynamics line combine to automate financial, customer relationship and supply chain. Sage offers three ERP solutions — Sage MAS 90, Sage MAS 200 and Sage MAS 500 — to meet your company’s needs. Even big ERP software players like SAP and Oracle offer small- and mid-sized business solutions.

Find ERP solutions tailored to your industry

ERP software systems that are designed for your industry can save time and money you might otherwise spend customizing general ERP solutions to reflect industry processes.

I recommend: Many ERP software systems such as WinMagi and Plex are designed specifically for small- to mid-sized manufacturing companies. QuickBooks Enterprise Industry Solutions provides special editions for contractors, manufacturing/wholesale, nonprofit organizations, professional services and retail. Epicor Solutions by Industry offers ERP solutions for distribution, financial services, hospitality/entertainment, industrial machinery, light engineering, manufacturing, nonprofit, pharmaceutical, professional services and retail.