White Paper

Understanding Small
Business ERP
Contents
Part 1: Vendors and Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Pricing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Which Companies Offer ERP Soltuions?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Part 2: Features and Capabilities of Automating HR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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Ziff Davis|White Paper| Understanding Small Business ERP

Part 1: Vendors and Pricing

The enterprise resource planning (ERP) market is huge and complicated; this article explains
some of the solutions and vendors available for small business. Many vendors offer stand-
alone applications or software suites that may be confusing for small business managers
to sort out when deciding what would work best for their business. Many ERP software
companies offer market solutions tailored to fit the needs of specific industries, such as
shipping, retail, and sales. The following list of vendors and pricing options will help small
business owners understand some of the options available.

Pricing

When comparing prices or getting quotes, ERP vendors usually ask about the features or
functions needed, the type of industry, and the number of employees in the organization. Most
ERP vendors are happy to offer a no-obligation price package customized with the features
businesses need. Other considerations include deciding on an on-premises, Software as a
Service (SaaS), or hosted ERP solution.

The mistake many businesses make when budgeting the cost of ERP solutions into their
business model is paying attention only to the license costs when in fact three other
factors should be considered. A general rule when factoring in maintenance fees is to add
18 percent to the list price for the first years fee. If the business needs to purchase new
server, workstation, or Microsoft SQL Server licenses, this is another cost connected with
implementing ERP software solutions.

Implementation services are the largest unknown pricing factor when budgeting for
ERP. These services include definition of scope and requirements analysis, installation,
configuration, data migration, customization, reporting, training, testing, and documentation. All
of these factors, often overlooked because they take time and money, are required to ensure
proper setup and installation of ERP software modules designed around the size and type of
business.

Without discussing with an ERP vendor specific needs and goals, businesses can come up
with only a rough estimate of the cost of deploying ERP. Many vendors estimate that the
minimum software to services cost for a typical ERP implementation is a one-to-one ratio. So,
if the software list price is $1,000, the organization should budget an additional $1,000 for
services and other fees.

Which Companies Offer ERP Soltuions?

Intacct offers web-based financial accounting ERP software for small to medium-sized
businesses (SMBs) that serve more than 30,000 users. Its system is designed for a large
variety of industries and can support business applications for accounting, time and expense
reports, revenue management, project accounting, billing, global consolidations, management
of multiple currencies, and financial reporting. Intacct is an SaaS solution that businesses

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using Oracle can access through a web browser over the Internet.

Epicor (formerly Activant) is well known for distribution software, with an emphasis on vertical
markets and best-of-breed software application developments. Its software offers solutions
for distribution industries to manage business on a single system. This ERP solution offers
applications for order management, transportation management, inventory management,
and accounting and provides reports on purchase orders, customer shipments, and material
requests. Epicors product includes a handheld screen that can scan barcodes on inventory
and upload the data to the system.

Sage offers a family of ERP applications designed for SMBs in the manufacturing or
distribution industry. Sages products present businesses with functionality for inventory
control, resource planning, shop floor control, human resources, supply chain management,
and accounting. Sage offers businesses the diversity of using multiple operating systems,
databases, and deployment types, such as web based or on premises. Its tools also conform to
multiple currency and language requirements for global businesses.

Base Builders has developed ERP software for architecture and engineering businesses. Its
Praesto AE platform is designed to integrate with existing applications to improve customer
relations and increase revenue. Users can access real-time data to keep current with project
milestones as they occur as well as status updates. This software runs on Mac OS X, Apple
iOS, and Windows devices. Its user dashboard provides at-a-glance views into data, tasks,
projects, and contacts and also offers integrated time tracking. Users can see detailed views
of projects by hour and track and create proposals. Invoicing information is transferred to
QuickBooks.

Part 2: Features and Capabilities of Automating HR

Modern human resources (HR) systems help businesses manage traditional HR functions
such as administering benefits, tracking personnel, talent management, and employee
evaluations. These systems can merge resources into an HR management system or HR
information system to link financial and HR modules through one database. Enterprise
resource planning (ERP) software assists businesses by reducing the amount of time HR
personnel spend on administrative activities, such as tracking employee data, processing
employee evaluations, and compiling payroll reports.

Capabilities
A payroll module can automate pay processes much like autopay can deduct a monthly utility
bill automatically on a set date every month. This module works by collecting employee time,
calculating taxes and deductions, and generating a regular payout to employees on set days.
Employees will see an electronic pay stub with a list of deductions, year-to-date payments,
pretax and post-tax deductions, direct deposit information, and other descriptive information as
on a traditional mailed pay stub.

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Ziff Davis|White Paper| Understanding Small Business ERP

A time and attendance module tracks work-related employee efforts. These modules provide
data collection, labor hour distribution, and data analysis; their main functions include cost
analysis and efficiency metrics. This module requires interaction with employees and HR
personnel through time entry from employees and HR approval of hours. Employees can use a
web interface to access the module so they can enter time daily from a mobile device while at
home or away on vacation, eliminating errors and ensuring proper time tracking.

A benefits administration module links employee data to benefits, allows employees to select
their benefits from company-offered options, and provides a system in which businesses can
track employee participation in benefit programs that include retirement pension plans, health
insurance, and profit sharing. This is useful, because HR representatives can send reminders
to employees who have not elected their benefits within the allotted time.

An employee and manager self-service module can provide a single web-based interface
for employees to create travel vouchers for reimbursement. Employees can enter their travel
tickets, hotel rooms, meals, and miscellaneous travel expenses. Information from this module
can be sent for supervisor approval and entered into the payroll module for reimbursement
funds. Employees can also enter reimbursement for professional development classes
for supervisor approval, which can be sent to the payroll module for reimbursement when
approved.

A workforce-management module allows the management team to recruit employees by

sending web-based application forms, preinterview questions, and background request
forms for applicants they believe fit a position, reducing HR time and expediting the hiring
process. This module also allows managers to train, track, and monitor employee performance
evaluations on an annual or semiannual basis. Employee evaluations may determine annual
increases in pay or on-the-spot cash bonuses that can be distributed through the payroll
module.

Each ERP HR module can connect to the others through relationship tables created in the
database. These tables connect information across each module based on outputs from
supervisors or HR personnel. These modules save time, ensure more accurate tracking, and
assure proper tracking of employee functions throughout the business.

About the Author

Anthony Ortega has extensive IT support and systems engineering experience in government
environments. A solutions-focused professional, he has led staff; worked in network operations
support, information assurance, and change management; managed project software and
licenses; and provided quality assurance. He has also developed coursework for VoIP, unified
communications, and cloud computing for online colleges. Anthony is working on his Ph.D.
dissertation in Organizations and Management, with a specialty in IT Management. He is an
analyst with Studio B.

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