Best 5 ERP Systems for Small Businesses


Selecting the right enterprise resource planning (ERP) system is crucial for small businesses looking to manage their operations efficiently. The right ERP software can significantly improve productivity, collaboration, reporting, and scalability. However, with so many options on the market, it can be challenging to determine which system best fits your business needs and budget.

This comprehensive guide examines the top 5 ERP platforms for small businesses in 2023. We will provide an overview of each system, analyze the pros and cons, and outline the key factors small business owners should consider when evaluating ERP solutions. With the information in this guide, you will be equipped to select the ideal system to drive growth for your small business.

What is an ERP System?

Before diving into the top systems, let’s first define what exactly ERP software is. ERP, which stands for enterprise resource planning, is a tool that integrates various business processes and workflows into a single, unified system. Core functions of ERP systems include accounting, human resources, supply chain management, project management, inventory management, sales, marketing, and more.

Rather than having these crucial business functions siloed in separate software programs, ERP consolidates them onto a single platform. This provides complete visibility across departments and functions in real time. For small businesses, a robust ERP solution can be transformative, driving increased productivity and profitability.

Some of the major benefits of ERP software include:

Increased Efficiency and Productivity

By streamlining processes and providing a single source of truth, ERP systems make small businesses much more efficient. Employees can access the data and tools they need in one spot, reducing redundant manual work. Automated tasks and workflows also drive greater efficiency across the company.

Better Collaboration Across Departments

Rather than operating in departmental silos, ERP systems connect CRM, accounting, HR, inventory and more onto a centralized platform. This facilitates improved cross-departmental collaboration in real time.

Real-Time Reporting and Analytics

Robust reporting and analytics provides actionable business insights based on real-time data from across the organization. Small businesses can identify opportunities and make data-driven decisions faster.

Cost Savings

By optimizing workflows and processes, ERP systems reduce costs associated with manual work, errors, and redundancy. The centralized procurement functionality also improves purchasing efficiency.

Scalability for Growth

As small businesses scale, ERP solutions can scale along with them. This prevents the need for new software as the company grows. The flexible, modular nature supports changing business needs.

Top 5 ERP Systems for Small Businesses

Now that we’ve covered the basics of ERP for small business, let’s explore the top ERP software platforms on the market in 2023:

1. Odoo

Overview of Odoo

Odoo is an open-source ERP system built on Python and PostgreSQL. The software includes a wide range of built-in business applications including CRM, accounting, inventory, manufacturing, project management, and more. Odoo is designed for small to midsize businesses.

The flexible modular architecture allows users to enable only the apps they need. Odoo can be deployed on-premise or in the cloud. On the community edition, users get access to Odoo apps free of cost. The enterprise edition provides additional pro features and support for a subscription fee.

Pros of Odoo

  • Open source and community version available at no cost
  • Modular apps for flexibility
  • User friendly and easy to customize
  • Strong third party app ecosystem
  • Scalable for business growth
  • Full suite of business management capabilities

Cons of Odoo

  • Functionality limited on free community version
  • Can experience performance issues as company scales
  • Less name brand recognition than larger ERP vendors
  • Less support resources compared to paid solutions

2. SAP Business One

Overview of SAP Business One

SAP Business One is designed for small to midsize enterprises looking for an affordable, scalable ERP solution from an established vendor. It provides integrated functionality for financials, CRM, inventory, warehousing, manufacturing, project management, supply chain and more.

The software is flexible and modular, allowing businesses to enable desired capabilities. SAP Business One can be deployed on premise or in the cloud via subscription. Over 60,000 small businesses around the globe currently use SAP Business One.

Pros of SAP Business One

  • Robust functionality for key business processes
  • Scales to support company growth
  • Flexible modular setup
  • Built-in analytics and reporting
  • Option for cloud deployment
  • Integrates with other SAP solutions
  • Wide range of supporting resources

Cons of SAP Business One

  • Can be expensive for very small businesses
  • Some limitations to customization
  • Steep learning curve
  • Add-ons and modifications can get costly

3. NetSuite ERP

Overview of NetSuite ERP

NetSuite ERP provides a full-fledged cloud ERP solution designed for fast-growing small to midsize businesses. The software integrates financial management, CRM, ecommerce, inventory and order management, HR, and analytics functionality.

NetSuite is extremely customizable to adapt to business needs and industry requirements. This SaaS ERP platform helps small businesses scale while optimizing financial and operational efficiency.

Pros of NetSuite ERP

  • True cloud-based SaaS ERP
  • Highly customizable with SuiteCloud Platform
  • Scales to support growing small business needs
  • Real-time reporting and dashboards
  • Integrated ecommerce capabilities
  • Industry-specific editions available
  • CPQ and global financial tools

Cons of NetSuite ERP

  • Higher cost ERP solution
  • Can be overkill for simpler small business needs
  • Requires significant training and setup
  • Limited offline capabilities

4. Microsoft Dynamics 365 Business Central

Overview of Microsoft Dynamics 365 Business Central

Microsoft Dynamics 365 Business Central is an affordable and user-friendly ERP designed for smaller companies. The cloud-based SaaS solution offers extensive capabilities for financial management, supply chain, inventory, sales, project operations and more.

It provides an intuitive interface and built-in intelligence to simplify complex business processes. Dynamics 365 integrates seamlessly with other Microsoft platforms and can be customized for industry needs via extensions.

Pros of Microsoft Dynamics 365 Business Central

  • Cost-effective pricing and licensing model
  • User-friendly and easy to learn
  • Seamlessly integrates with Microsoft apps
  • Customizable without coding via PowerApps
  • Scales from 1 to hundreds of employees
  • Strong third-party integrator and ISV ecosystem
  • Available on premise or via cloud

Cons of Microsoft Dynamics 365 Business Central

  • Less robust than higher-end ERP systems
  • Limited to Microsoft ecosystem technologies
  • Weaker manufacturing and warehousing capabilities
  • Not as quick to update with new features

5. Acumatica Cloud ERP

Overview of Acumatica Cloud ERP

Acumatica is a adaptable, cloud-based ERP platform designed for mid-market and emerging growth companies. It delivers robust functionality for financials, distribution, project accounting, payroll, and more via its modular framework.

Acumatica provides flexibility to switch on and off capabilities as the business grows. The modern, intuitive user interface ensures high adoption across the organization. Acumatica Cloud ERP helps companies scale operations more efficiently as volumes expand.

Pros of Acumatica Cloud ERP

  • Cloud-based with scalability
  • User-friendly interface and navigation
  • Customizable workflows without coding
  • Integrated CRM and project accounting
  • Modular structure adds capabilities as needed
  • API and integration tools
  • Dedicated product development and updates

Cons of Acumatica Cloud ERP

  • Less brand recognition and smaller market share
  • Limited specialty manufacturing features
  • Rely on partners for customized deployments
  • Not ideal for complex multinational organizations

Key Factors to Consider When Choosing an ERP System

With the top ERP software options laid out, what are the key factors small businesses should evaluate when selecting their platform? Here are some of the most important elements to consider:

Functionalities and Features

First assess what core capabilities you require. Accounting and financials are a given, but ensure the system can handle your sales, inventory, purchasing, operations and other functional needs. Prioritize must-have vs. nice-to-have features.

Budget and Pricing

Cost will be a major factor, especially for very small businesses. Check if systems offer free or freemium versions to get started. Compare module/user based pricing models and hidden costs. Evaluate ROI of paid ERP options.

Ease of Use and Training

The system should be intuitive for employees across roles and skill-levels. Look for self-service training resources. Complex systems can hamper user adoption.

Customization and Scalability

Choose a platform that can adapt to your industry and business needs. Scalability to support growth over time is also key. Read customer reviews to evaluate flexibility.

Industry-Specific Capabilities

Some ERPs cater better to manufacturing, ecommerce, financial services, etc. Ensure the solution has capabilities tailored to your vertical.

Deployment Method (Cloud vs. On-Premise)

Cloud systems offer lower startup costs but require strong internet connectivity. On-premise allows for customization but demands internal infrastructure.

Data Security

Cloud ERP vendors must demonstrate robust security to protect company data. On-premise systems put security burden on the business.


Selecting the right ERP platform is a big decision for scaling small businesses. This guide looked at the top systems: Odoo, SAP Business One, NetSuite, Microsoft Dynamics 365, and Acumatica. Each platform has unique strengths and weaknesses.

It is critical to match the ERP software to your specific business requirements, industry, use cases, budget and growth trajectory. Weigh the pros and cons and key decision factors highlighted in this guide. Leverage free trials to test options firsthand. Investing in the right ERP solution can turbocharge the growth of your small business.