When Prime Minister Narendra Modi announced his demonetization scheme on November 8th, he also laid the foundation for the evolution of small and traditional business operations in India. Everyone from the local grocer, hair cutting salon, sweet shops to small and medium manufacturers had to quickly activate some sort of e-money system to purchase and sell goods. While there has been some short-term pain this is in fact a forced opportunity for businesses to upgrade their traditional functions and move towards building a future-proof digital business.
The biggest challenge for a small business moving to a digital economy is the need to be in regulatory compliance. Digitization brings in transparency in business dealings and helps streamline processes through automation. It also requires a greater degree of vigilance to ensure regulatory commitments like tax, employee provident fund payments, ESI payments etc are managed correctly.
Demonetization is one of a series of steps initiated by the government to move towards a digital economy, as part of the Digital India Initiative. Moving forward the government is expected to shift to Goods and Service Tax (GST) sometime this year. GST is a consumption based tax levied on sale, manufacture and consumption on goods & services at a national level. This tax will be substitute for all indirect tax levied by state and central government. GST will make it mandatory for real-time regulatory compliance, which is only possible with an efficient ERP in place.
While accounting software can be adapted to meet GST requirements, this is a good time for SMEs to analyze their requirements and adapt a solution that goes beyond mere book-keeping. To a solution that allows them to keep track of their business operations from anywhere, on any device. Apart from meeting regulatory requirements an ERP solution also offers the following benefits:
- Improve operational efficiency: By assessing intelligent data and all the major metrics a business can need. It will help your business manage resources, eliminate delays, and optimize processes. An ERP system eliminates repetitive processes and reduces the need to manually enter information. The system will streamline business processes, making it easier and more efficient for companies to collect & collate data.
- Lower cost of operation: By driving a lean transformation of your organization. The ERP system’s ability to measure performance and drive continuous improvement allow businesses to lower their labor and material cost while increasing growth, profitability and cash flow. If you own a manufacturing business for example, an ERP system will assist you in making Lean Manufacturing truly achievable.
- Integrated Solution: Reduces overall operating costs by streamlining data into one application. This does two things. Centralizes business information in one place so all departments have access to the same information at the same time. Second reduces overall operating costs by streamlining data into one software application, therefore saving costs of individual software and management systems.
- Accessing real-time information: Real Time access to information will enable personnel to take correct and efficient business decisions. With improved reporting capabilities, your company can easily respond to complex data requests.
- Streamline supply-chain: By having intelligent data on procurement and inventory. The data is processed, analyzed, and developed into predictions and demand forecasting; making the entire supply chain more responsive.
- Better tracking of resources: Helps reduce lead times and increase production rate. Streamline every process from scheduling to accessing resources. Reduce costs through simplification and mistake-proofing.
- Security: Improve the accuracy, consistency and security of your data. Restrictions to data can also be enhanced.
- Employee Productivity: An ERP system optimizes process management, thus increasing the productivity of employees. Eliminates duplicate work as processes are automated.
Are your systems and processes ready to embrace the digital wave?
A flexible ERP solution is a must for your business. It can help you run your business efficiently, reduce costs, meet regulatory requirements and also ensure your business is ready to meet the challenges of a rapidly digitizing nation.
EPPS ERP solutions can help your business run without any outages.