The idea that ERP systems are only for giant businesses has long been broken. Nowadays, most small and medium-sized businesses are seen using various types of ERP software. Because using ERP systems is so beneficial that hardly any business can resist using them.

According to a 2023 study by Aberdeen Group, businesses using ERP systems report a 22% reduction in operational costs and a 20% improvement in process efficiency. You’ll find numerous similar types of statistics about ERP online.

For example, a 2024 report from Panorama Consulting found that 67% of SMEs implementing ERP solutions saw a significant decrease in manual data entry errors, with some reporting up to a 30% drop in costly mistakes.

Still, a considerable percentage of small and medium enterprises tend to avoid ERP due to the cost involved in using it. So, if you are a small or medium enterprise and are looking for an ERP solution, this post is truly for you.

In this article, I will cover a thorough analysis to help you find the best and cheapest ERP system for small businesses. Let’s read it to the end.

What Is ERP?

ERP stands for Enterprise Resource Planning. It’s a type of software that helps you manage the day-to-day activities of your business, like accounting, inventory, sales, human resources, and customer service from one single place. This helps reduce manual work, avoid errors, and save time.

For small businesses, ERP systems can be especially useful because they simplify operations and make data flow smoothly between departments. It can give you real-time data about the stock levels, sales & orders, financial status, employee performance, supply chain, delivery updates, customer data, etc.

Thus, ERP gives you better control and a clearer view of how your business is doing. This makes it easy for you to make smart decisions using real-time data.

Difference Between ERP for Large and Small Businesses

To see how ERP systems work for different types of businesses, it’s essential to compare their features, scalability, and focus areas. Below is a table outlining the key differences between ERP systems designed for large enterprises and those tailored for small businesses. Take a look:

Aspects	ERP for Large Businesses	ERP for Small Businesses
Scale & Complexity	* Designed for complex operations * Has multiple departments * Supports global supply chains * Manage high transaction volumes	* Simplified systems for smaller teams * Focuses on core functions like accounting, inventory, and CRM
Cost	High upfront and ongoing costs (often $50,000–$500,000+ annually)	Affordable, with cloud-based options starting at $20–$200/month per user
Customization	* Extensive customization to fit workflows * Often, requires dedicated IT teams for the customization	* Limited but sufficient customization * Offers pre-built templates for quick setup and minimal IT reliance
Learning Curve	* Requiring extensive training	* Minimal training (days to a week)
Features	* Advanced modules like multi-currency support * Global compliance * Predictive analytics for enterprise needs	* Essential features like invoicing * Inventory tracking, * Basic reporting tailored to SME needs
Scalability	* Support thousands of users * Multiple locations * Handle diverse business units	* Moderately scalable * Ideal for growing SMEs * May require upgrades for rapid expansion
User Base	Supports hundreds or thousands of users (globally)	Typically supports 5 to 500 users
Data Processing	* Handles massive datasets * Real-time analytics * Complex forecasting	* Processes smaller datasets
Examples	* SAP S/4HANA * Oracle NetSuite * Microsoft Dynamics 365	* WP ERP *Odoo * Zoho ERP *QuickBooks Enterprise * Syspro

Explore BPM vs ERP and the key differences between them.

Why Is It Mandatory to Use ERP in Small Businesses?

Small and medium businesses run with limited resources – people, time, investment, and assets. They don’t usually have a large financial backup to easily recover from any mistake. So, to save them from any potential wrongdoing, ERP software can play a crucial role.

Below, I have covered a few points on why it’s mandatory to use an ERP system in small businesses. Keep reading!

a. Saves Time on Daily Tasks

Using a suitable ERP system can automate many repetitive tasks like invoicing, payroll, inventory updates, and order processing. This can save you hours every week, so you can spend time growing your business. Check how to simplify business tasks with ERP.

b. Reduces Costly Errors

Manual work often leads to mistakes in data entry, billing, or stock management. With the help of an ERP software, you can keep everything accurate and up to date. This cannot only reduce costs but also save you money.

c. Gives a Clear Picture of Your Business

When you have all the necessary data in one place, it becomes easier to track sales, expenses, inventories, and performance in real time. This can help you make smarter decisions and react faster.

d. Improves Team Collaboration

HRM is an important part or module of most ERP systems. By harnessing this module well, you can make a way to properly utilize your team members and foster productive team collaboration.

e. Enhances Customer Service

CRM (customer relationship management) is another popular module commonly found in most ERP systems. It can help you track customer orders, check the current shipping status, and explore previous records. Thus, you can respond faster with valid replies to satisfy and better engage them.

Check how to reduce customer support pressure and take it to a new height.

Things to Consider When Choosing an ERP System

Choosing the right ERP system can feel overwhelming, as so many options are available online. But if you set a clear benchmark, it will be easier to select the right ERP software through meticulous evaluation. Below are the factors you can consider to choose your ERP solution.

a. Affordability

Budget is the biggest issue in choosing an ERP solution. Most ERP solutions may charge you less at the beginning. But as your business scales, you may want to enable more features. Many ERP solutions may start charging you significantly more at this time. So, look for a solution that is budget-friendly to you.

b. Ease of Use

Your ERP system should make life easier, not harder. So, you should choose a solution that offers a user-friendly interface and makes it easy for your team to learn everything very quickly, without needing any steep learning curve.

c. Scalability and Flexibility

Make a habit of always thinking ahead. The ERP you pick should grow with your business. As you add more team members or expand your services, your ERP software should be able to handle it without major changes.

d. Integration with Popular Tools

Make sure your ERP solution flawlessly works with the popular HRM, accounting, and CRM solutions. For example, if it has integration with email marketing solutions like MailChimp, you can use the ERP data to run marketing campaigns.

e. Cloud-Based vs. On-Premise Options

Cloud-based ERPs are popular with small businesses because they’re easier to set up and don’t require hardware or IT support. But if you prefer full control and data stored on-site, an on-premise option might suit you better. Check SaaS ERP vs Cloud ERP.

f. Support and Security

Good support matters! Your ERP may crash anytime due to a server problem, mishandling, or anything. Unless the software developer maintains a support team, it will be impossible for you to overcome those situations successfully. So, cross-check their support team and be sure about the security features of the ERP solution.

Best ERP Solutions for Small Businesses at This Moment

Now, in this section, I will discuss and introduce you to the best ERP solutions for small businesses at this moment. Hope you will enjoy it. Keep reading!

1. WP ERP

WP ERP is a freemium ERP plugin made for WordPress users. It offers three core modules: HR Management, CRM, and Accounting. This makes it a great all-in-one tool for small businesses that want to manage employees, customers, and finances from the same dashboard. The setup is simple, and you don’t need advanced technical skills to get started.

A big reason to consider WP ERP is its flexibility and addon options. You can start with the free version and later add paid extensions if your business grows. Some of the popular extensions include project management, payroll, document management, inventory, and WooCommerce integration.

It also offers email communication tools and advanced reporting features. If you’re already using WordPress and WooCommerce, WP ERP can be a budget-friendly ERP solution for your small business needs.

Key Features and Functionalities of WP ERP

• Integrates WooCommerce through a premium extension to sync your online store data with your ERP system

• The HR module helps you manage employee information, track leave requests, and maintain detailed employee records easily

• The CRM module lets you track customer information, schedule meetings or calls, and send emails directly from your WordPress site

• The accounting module includes essential features like income tracking, expense management, payments handling, and customer transactions

• Dozens of powerful addons, like payroll management, document management, recruitment tools, etc.

Pricing of WP ERP

The pricing of most ERP solutions is mainly determined by how many add-ons you want and how many users you need it for. WP ERP is exceptional in this regard. As already said, WP ERP has a free version available. Let’s now discuss its premium version.

• The core WP ERP plugin costs $119/year (with any 9 pro extensions for free)
• Per user costs $36/year
• Each addon costs $30-$120/year

Now, suppose you’ll get the WP ERP plugin with any 9 extensions for 10 users, its final cost will be $479/year.

If you want the plugin with all extensions for 10 users, its final cost will be $1444/year.

2. Odoo

Odoo is a highly versatile, open-source ERP and CRM software. Its modular system allows small businesses to start with basic functionalities like accounting or inventory management. As businesses scale up, they can add more apps as needed. Odoo provides both cloud-based and on-premise options.

Its intuitive interface ensures quick adoption, even for non-technical users. Its strong focus on customization supports a wide range of industries, from retail to manufacturing. It integrates with all the popular eCommerce platforms and marketing software.

Key Features and Functionalities of Odoo

• Modular design allows you to choose suitable apps for CRM, accounting, inventory, sales, eCommerce, HRM, and more

• Cloud and on-premise options provide flexibility in choosing the suitable option as your business needs

• Has integration with popular eCommerce (Shopify, WooCommerce, Amazon, eBay, and more) and marketing platforms (Mailchimp, HubSpot, Google Workspace, and more)

• Real-time reporting gives you insights about sales, inventory, and financial information

• Offers apps both for Android and iOS, which indicates its mobile-friendliness

Pricing of Odoo

Odoo also has three pricing plans. Among them, one is free. Let’s now talk about the premium plans.

>> Standard Plan

• For 1 user, the cost of Odoo will be $50/year
• For 10 users, the total cost of Odoo will be $864/year

>> Custom Plan

• For 1 user, the cost of Odoo will be $131/year
• For 10 users, the total cost of Odoo will be $1308/year

Note: Above, we have presented a standard pricing system of Odoo. But remember that Odoo increases/decreases its price based on users’ locations. For example, Odoo’s charge for an indian user will be lower than that of a Western user.

Besides, you may require implementation support while using this solution. You have to pay an additional fee in this case as well.

3. Zoho ERP

Zoho ERP is a cloud-based business management solution designed for small and growing businesses. It offers a wide range of integrated applications to help you manage different areas of your business, like sales, accounting, inventory, human resources, and project management.

The system is user-friendly and suitable for non-technical users, which makes it easy for business owners and staff to adopt quickly. Since it is cloud-based, you can access your data anytime and from anywhere using a web browser or mobile app.

Initially, you can start with basic tools like CRM or Zoho Books for sales and accounting, and later add more apps like Inventory, Zoho People, and Zoho Projects as your business grows. Its strong automation features help you reduce manual tasks, and its built-in reporting tools give you real-time insights into your business performance.

Key Features and Functionalities of Zoho ERP:

• CRM helps you manage customer data, track sales pipelines, automate follow-ups, and run marketing campaigns from a single dashboard

• Inventory allows you to manage stock levels, track sales and purchase orders, and handle multiple warehouse operations smoothly

• Zoho Projects helps you plan and track business projects, assign tasks, monitor progress, and collaborate with your team in real time

• The HR module (Zoho People), lets you track employee records, attendance, leave requests, and performance appraisals in one place

• Zoho ERP offers third-party integrations with apps like Shopify, PayPal, QuickBooks, Google Workspace, and Slack to make your business processes more connected

Pricing of Zoho ERP

It has five packages. They are Creator, CRM, Inventory, Books, and One. Each one has a different price. Below we have listed pricing plans for the four of them.

>> Zoho Creator

• Standard – For 1 user, $156/year; and for 10 users $1560/year
• Professional – For 1 user, $600/year; and for 10 users $6000/year

>> CRM

• Standard – For 1 user, $180/year; and for 10 users $1800/year
• Professional – For 1 user, $480/year; and for 10 users $4800/year

>> Inventory

• Standard – For 1 user, $156/year; and for 10 users $1560/year
• Professional – For 1 user, $948/year; and for 10 users $9480/year

>> Books

• Standard – For 1 user, $156/year; and for 10 users $1560/year
• Professional – For 1 user, $300/year; and for 10 users $3000/year

4. QuickBooks Enterprise

QuickBooks Enterprise is a desktop-based ERP solution. It’s designed mainly for small to medium-sized businesses that need advanced financial management and reporting tools. The software is especially popular among businesses in retail, manufacturing, wholesale, and professional services. With its user-friendly interface and detailed tutorials, even non-accountants can manage complex business data.

One strong reason to shortlist QuickBooks Enterprise is its deep focus on accounting accuracy and detailed financial reporting. It allows businesses to handle large volumes of data with fast performance.

The system offers industry-specific features and customizable reporting templates that help you make better business decisions. Although QuickBooks Enterprise is a desktop software, it offers optional cloud hosting if you want remote access.

Key Features and Functionalities of QuickBooks Enterprise:

• Offers advanced accounting features like tracking income, expenses, assets, liabilities, and generating full financial statements with ease

• It supports robust inventory management, including features like barcode scanning, multiple location tracking, and advanced inventory reporting

• Has industry-specific versions for sectors like manufacturing, wholesale, retail, and nonprofit, giving tailored tools and reports

• Allows detailed job costing that lets you track labor, materials, and overhead costs for individual projects or jobs

• It integrates with many popular business tools like Salesforce, Shopify, and Microsoft Excel, allowing better workflow management across different systems

Pricing of QuickBooks Enterprise

QuickBooks Enterprise has straightforward pricing. It has three plans. Their costs are:

• Gold – $2210/year (available for 1 to 30 users)
• Platinum – $2717/year (available for 1 to 30 users)
• Diamond – $5364/year (available for 1 to 30 users)

5. Syspro

SYSPRO is a full-featured ERP software mainly designed for manufacturing and distribution businesses. It offers end-to-end solutions for managing finance, inventory, production, supply chain, and customer relationships from a single platform.

The system supports both on-premise and cloud deployments. This gives businesses the freedom to choose the option that fits their IT setup. SYSPRO’s clean interface and user-friendly navigation make it easier for both technical and non-technical users to adopt the system.

It offers deep functionalities like production planning, material requirements planning (MRP), and lot traceability. The software provides real-time data insights that help decision-makers track operations across multiple departments.

Key Features and Functionalities of SYSPRO:

• Offers comprehensive financial management tools that allow businesses to handle general ledger, accounts payable, accounts receivable, and financial reporting easily

• Strong inventory management allows real-time stock tracking, multiple warehouse management, and batch/serial number tracking

• It includes advanced manufacturing management tools like production scheduling, bill of materials (BOM), and material requirements planning (MRP)

• Supports supply chain management with features like purchase order processing, supplier management, and order fulfillment tracking

• Customer relationship management (CRM) functionalities help businesses manage sales processes and customer interactions effectively

Pricing of Syspro

Syspro has comparatively more complex pricing. It’s difficult to briefly summarize their pricing in this short space. What we can only tell in short is

• Perpetual License (per user) for Syspro is $3,500
• Subscription License (per user per month) for Syspro is $200

For detailed information, visit their pricing page.

Final Thoughts!

We are now at the end of this post. Choosing the right ERP system for your small business depends on your budget, business needs, and how comfortable you are with using new software. Many ERP tools in the market offer powerful features, but their setup and learning process can be difficult for small teams with limited technical knowledge.

Also, their pricing models often depend on too many variables like users, storage, features, and add-ons, which can be confusing for beginners. If you want something easier to start with, WP ERP can be a smart choice. Its setup process is simple and user-friendly, especially if you already have a WordPress website.

The pricing system is also very straightforward compared to many other ERP solutions. You can clearly see what you are paying for without any hidden charges or complicated calculations. For small businesses looking for an affordable and easy-to-manage ERP system, WP ERP is definitely worth shortlisting.