What is an ERP, in plain language

ERP stands for enterprise resource planning. It is simpler than it sounds.

One system instead of many files

An ERP keeps sales, stock, purchases, accounts and people records in one place, so they always agree with each other.

A simple example

You sell ten items. In an ERP, stock drops by ten, the customer owes you the amount, the revenue is recorded, and your reports update. You enter the sale once.

The parts are called modules

Common modules are accounting, inventory, sales, purchasing, HR and payroll. You switch on only the ones you need.

Who needs one

Businesses with several people, several branches, or a finance team that spends more time fixing numbers than using them.

Who does not

A single small shop usually needs a simpler billing app first, and can move to an ERP when it grows.