A report revealed that, among 792 ERPNext-using companies, the majority are Indian SMEs operating in the IT services space. These companies have roughly 10 to 50 employees and reports $ 1M to $ 10M annual revenue. So, it is profound that small and mid-sized companies are mainly utilizing ERPNext! 

It is one of the few open-source tools that make sense for small-scale companies. If you are thinking about using this ERP system, but aren't sure keep reading this blog to walk through all to build an ERPNxt system that works for your SME setups. 

Why Choose ERPNext for Small Business? 

ERPNext software is an open-source and modular software. It caters to every possible need to streamline small to mid-sized teamwork. From basics to complex, this system matches the requirements of a business in: 

  • Centralizing sales and purchase data 
  • Real-time updates on Inventory and stock  
  • Managing accounting, taxes, invoices 
  • Strategic finance management 
  • HR and Payroll management 
  • Manufacturing 
  • CRMs 
  • Project management

ERPNext Customization Scope  

The best part is a workflow, and integration is entirely customizable. With the help of ERPNext service providers, you can customize all aspects of Frappe ERPNext, including doctypes, fields, custom scripts, etc.

In short, ERPNext software architecture facilitates a seamless collaboration. It bridges the communication gap and empowers small companies with prudent decision-making objectives. 

Common Hurdles You Will Face ( and How to Avoid Them) 

Let's be honest! Not ERPNext projects have seen success! The reasons are the following hurdles and bad decisions: 

Getting too Much at Once 

Businesses getting started with the ERPNext solutions often face problems at the beginning. No, there is no problem with the software; it's a human problem! Most businesses make this mistake usually. It leads things beyond control and pushes the complete system towards failure. 

Solutions: Keep a strategic roadmap for ERPNext implementation. Start with the core process and add from there. 

Integration with the Existing System 

Incompatible settings in the existing system often raise major hurdles in ERPNext implementation.  Changes in system architecture usually raise obstacles such as unsynchronized data and software malfunctioning. 

Solutions: API integration facilitates optimized integration planning of ERPNext in the existing system. Testing at every stage, data exchange, and proactive vigilance can resolve this issue. 

Facing Data Migration Challenges 

Data is at the core of every business, whether a small or large enterprise. You should also protect the data from any kind of vulnerabilities. The duplication and system incapability pose risks when transferring the data from the legacy system to the ERPNext. 

Solutions: data audit, validation checks, data back up: what an ERPNext services providers can give the right path to avoid such mishaps. 

Understanding Cost and Time Advantages of ERPNext for SMEs 

Cost and time are two rarest advantages of ERPNext for SMEs. How? It's an open-source platform- so the cost advantage is profound. Another point is the UI of the ERPNext platform is very intuitive.  

  • Firstly, it facilitates faster development, hence quick deployment 
  • Second, it saves on license or subscription fees 
  • Thirdly, ERPNext facilitates fast user adoption as the software is 100% user-friendly. 

Final Thoughts: The Future of ERPNext in the Small Business Landscape 

More small businesses are waking up to the idea of open-source. And, it's not always about the free; the idea also indicates efficiency. With ERPNext and tools like Frappe Cloud, you can get enterprise-grade workflows without enterprise-level costs. 

As AI, automation, and integration tools grow, ERPNext will evolve more. In fact, we have already seen many future-proof features in ERPNext, including more low-code features, API capabilities, and automation triggers. The trends indicate this is a good time to invest in a system you can grow with.