Best ERP Systems for Small Companies

Running a small company comes with its own set of challenges—managing everything from finances and inventory to customer relationships and payroll. I’ve worked with small businesses that started using spreadsheets and basic accounting software, only to quickly outgrow them as operations expanded. That’s where an ERP system (Enterprise Resource Planning) comes into play. A good ERP system can integrate all your critical functions into one platform, saving time and reducing errors. But finding the right ERP for small companies means looking for something affordable, easy to implement, and scalable as you grow.

Let’s explore the best ERP systems for small companies and why they’re perfect for your business.

Top ERP Systems for Small Companies in 2024

1. Oracle NetSuite - Best for Growing Small Businesses

Oracle NetSuite is one of the most popular cloud-based ERP systems, and for good reason. I worked with a small eCommerce business that outgrew its simple accounting software. NetSuite allowed them to start with financial management and then easily expand into CRM, inventory management, and supply chain as they scaled.

Why It’s Great:

• Scalability: Start small with core functions and add modules as your business grows.
• All-in-one platform: Covers everything from accounting to inventory, CRM, and eCommerce.
• Cloud-based: Accessible from anywhere, with regular updates and no need for heavy IT infrastructure.

Challenges:

• Price: While it offers robust features, NetSuite can be on the expensive side, especially if you add more modules.
• Implementation time: Setting up and customizing NetSuite can take longer than smaller, simpler ERPs.

Best For: Small businesses with plans to grow rapidly and expand operations across multiple areas like finance, inventory, and sales.

2. Zoho ERP - Best Budget-Friendly ERP

For small companies looking for a cost-effective ERP solution, Zoho ERP is a solid choice. I helped a small retail shop integrate Zoho’s suite of tools, and it worked seamlessly. They started with just the CRM and inventory modules and expanded to include payroll and customer support. It’s perfect for businesses looking to consolidate multiple apps into one system.

Why It’s Great:

• Affordable pricing: One of the most budget-friendly options for small businesses.
• User-friendly interface: Easy to learn, with a clean and simple interface.
• Integrated ecosystem: Includes CRM, finance, HR, inventory, and more—all integrated into one platform.

Challenges:

• Limited customization: While great for small businesses, Zoho might not offer the deep customization larger companies need.
• Scalability: Best suited for small teams; might not scale as efficiently for fast-growing businesses.

Best For: Small businesses on a budget looking for an all-in-one solution that’s easy to use and implement.

3. Odoo - Best for Customization

If you want full control over your ERP, Odoo is the most customizable option out there. I’ve worked with small businesses that had very unique workflows, and Odoo’s open-source nature allowed them to build exactly what they needed. Its modular approach means you can start with just the basics, like invoicing or CRM, and add more as you grow.

Why It’s Great:

• Open-source: Highly customizable with thousands of apps and integrations.
• Modular pricing: Pay only for the modules you need—great for businesses with specific requirements.
• Scalable: Start small and grow without needing to switch systems.

Challenges:

• Technical expertise required: Customizing Odoo to fit your exact needs may require some coding or hiring a developer.
• Steeper learning curve: It’s more complex than simpler systems like Zoho.

Best For: Tech-savvy small businesses or those with unique processes needing extensive customization.

4. QuickBooks Online + ERP Integrations - Best for Finance-Focused Businesses

Many small businesses already use QuickBooks Online for accounting, and if your main focus is on financial management, you can expand its capabilities by integrating it with ERP add-ons like Katana or Fishbowl. I’ve seen small manufacturers and retailers continue to use QuickBooks while layering on these ERP tools to manage production, inventory, or order fulfillment.

Why It’s Great:

• Familiar interface: If you’re already using QuickBooks, you don’t need to learn an entirely new system.
• Finance-focused: Ideal for small businesses that need strong accounting features with some ERP capabilities.
• Affordable: A cost-effective way to get some ERP functionalities without switching to a full ERP system.

Challenges:

• Limited scope: Not a full-fledged ERP; you’ll need add-ons for other business areas like inventory and production.
• Not as scalable: It works well for small teams but might struggle with complex operations as your business grows.

Best For: Small businesses that already use QuickBooks and need extra ERP functions like inventory or order management without switching systems.

5. SAP Business One - Best for Complex Small Businesses

If your small company has more complex needs, such as multi-location operations or international sales, SAP Business One is a powerful yet scalable ERP designed specifically for small to mid-sized businesses. I helped a small manufacturing firm integrate SAP Business One, and its deep features—especially for inventory management and production—helped them streamline their supply chain and cut down on manual errors.

Why It’s Great:

• Comprehensive features: Offers full ERP functionality—finance, sales, inventory, and manufacturing—all in one.
• Customizable: Tailor the system to fit your business needs as you grow.
• Scalable: Suitable for growing small businesses with more complex operational needs.

Challenges:

• Price: More expensive than most ERPs geared towards small businesses.
• Longer setup: Implementation can take time, especially if you need to customize features for specific workflows.

Best For: Small businesses with more complex or technical needs, such as manufacturing, distribution, or multi-location operations.

6. Xero + ERP Integrations - Best for Simplicity and Ease of Use

Xero is another excellent accounting tool, similar to QuickBooks, but with a bit more flexibility for adding ERP-like features. I’ve seen small businesses use Xero for accounting while integrating third-party ERP systems like Unleashed or Dear Systems for inventory and order management. It’s simple, straightforward, and perfect for smaller businesses that don’t need a full ERP right away.

Why It’s Great:

• User-friendly: Xero has one of the easiest-to-use interfaces, making it great for small teams.
• Cloud-based: Accessible from anywhere with minimal setup.
• Integration-ready: Connects easily to ERP tools for inventory, order management, and more.

Challenges:

• Not a full ERP: Like QuickBooks, Xero is primarily an accounting tool, so you’ll need to integrate it with third-party systems to get full ERP functionality.
• Limited scalability: Works well for small teams, but may not handle large-scale operations or rapid growth.

Best For: Small businesses looking for simple accounting with the ability to add ERP features as needed.

Key Factors When Choosing an ERP for Small Companies

When selecting the best ERP for your small business, there are a few crucial factors you should keep in mind:

1. Budget

Small businesses often have tighter budgets, so it’s essential to choose an ERP with scalable pricing. Options like Zoho and Odoo let you start small, paying only for what you need, while more advanced solutions like NetSuite may have higher starting costs.

2. Scalability

As your business grows, so will your ERP needs. Ensure that the system you choose is flexible and scalable. Cloud-based solutions like Oracle NetSuite and SAP Business One offer great scalability, but also consider modular systems like Odoo, where you can add features over time.

3. Ease of Use

You don’t want your team wasting valuable hours learning a complicated system. Look for a user-friendly ERP, especially if your team isn’t tech-savvy. Zoho and QuickBooks are both simple to implement and use.

4. Industry-Specific Features

Some ERPs are designed with specific industries in mind. For example, SAP Business One is great for small manufacturers or complex businesses, while QuickBooks is ideal for finance-heavy businesses.

5. Cloud vs. On-Premise

Most small businesses benefit from cloud-based ERPs, which are easy to set up, have lower upfront costs, and are accessible from anywhere. If you’re looking for flexibility, cloud-based solutions like NetSuite, Zoho, and Xero are your best bet.

Conclusion

Choosing the best ERP for your small company comes down to understanding your specific needs—whether you want an affordable, easy-to-use solution like Zoho, a customizable platform like Odoo, or a powerful ERP for growing businesses like Oracle NetSuite. For small businesses that are finance-focused, QuickBooks Online or Xero paired with ERP add-ons can give you just enough functionality to stay organized without overcomplicating things.

Remember, the right ERP can streamline your processes, save time, and help you scale efficiently. Whatever system you choose, make sure it fits your current needs while allowing room for future growth!