The Best ERP Systems of 2023
- Microsoft Dynamics 365 Business Central: Best overall
- Syspro: Best for distribution companies
- QT9: Best for life sciences companies
- Acumatica: Best for role-based solutions
- Katana Manufacturing ERP: Best for manufacturing companies
- Cougar Mountain Denali Summit: Best for nonprofits
- AccountMate: Best for financial management
Why You Can Trust Forbes Advisor Small Business
The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content to guide you in making the best decisions for your business journey.
We analyzed the top players in the space and narrowed it down to scrutinize and rank the top 16 across 25 key metrics. Our ratings consider factors such as transparent pricing, employee self-sufficiency, compatibility with third-party integrations, access to customer support and ratings. All ratings are determined solely by our editorial team.
Best Overall
Microsoft Dynamics 365 Business Central
5.0
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
$70 per user
per month
Free trial
Yes, for 30 days
Standout features
Customer return and repair tracking, work order assigning and stock replenishment predictor
Starting price
$70 per user
per month
Free trial
Yes, for 30 days
Standout features
Customer return and repair tracking, work order assigning and stock replenishment predictor
Why We Picked It
Microsoft Dynamics 365 Business Central is a robust ERP system that helps small businesses organize their sales, service, operations and finance functions so they can achieve faster, better results. You can use it to register shipped goods and store details in one place automatically, assign employees to certain work orders and move items between locations easily.
Other noteworthy features include the ability to fulfill customers’ orders efficiently through real-time data and predict stock replenishment. Plus, you can manage your business on the go with the convenient mobile app.
Who should use it:
If your business is already familiar with and using Microsoft Office, Microsoft Dynamics 365 Business Central can be a good addition.
Pros & Cons
- Real-time performance metrics to help you make informed decisions
- Chance to link the system to Microsoft Office tools, such as Outlook and Excel, to improve experiences for customers and employees
- Customer agreement tracking to manage prices, discounts, delivery dates and more
- Can be slow sometimes
- Requires a learning curve
- Reports may be difficult to understand
Best for Distribution Companies
Syspro
4.5
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
Must contact for pricing
Free trial
No
Standout features
Sales analysis, goods in transit system and charge-back management
Starting price
Must contact for pricing
Free trial
No
Standout features
Sales analysis, goods in transit system and charge-back management
Why We Picked It
Syspro is a robust ERP solution for distribution companies. It can help you process and track large volume orders, procure materials from various suppliers, optimize inventory and share information held in several locations.
With Syspro, you can also manage goods in transit as well as return items and chargebacks. Its powerful sales reporting is ideal if you’d like to analyze market trends, home in on your most profitable customers, figure out which products are selling and calculate product-specific profit margins.
Who should use it:
Syspro is a good fit if you’re a distribution company that would like to optimize your operations and grow.
Pros & Cons
- Paperless, automated invoicing
- Market trends analysis and forecasting to help you make informed decisions
- LEAN management inventory system to reduce errors
- Must contact for pricing
- User interface (UI) could be improved
Best for Life Sciences Companies
QT9
4.3
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
Must contact for a quote
Free trial
Yes, for 30 days
Standout features
Real-time inventory control, manufacturing automation and purchasing management
Starting price
Must contact for a quote
Free trial
Yes, for 30 days
Standout features
Real-time inventory control, manufacturing automation and purchasing management
Why We Picked It
QT9 was specifically created for organizations in industries, such as life sciences, medical devices, pharma and biotech. It can help increase productivity, reduce inefficiencies, centralize data and support growth. Through QT9’s robust ERP system, you may use real-time production data to optimize scheduling, stay up-to-date on inventory through built-in notifications and determine when various actions were taken.
In addition, QT9 makes it easy to track supplier pricing, enforce minimum purchase quantities and create supplier backorders. Plus, you can connect sales with other business functions by linking orders to jobs, shipping and invoicing automatically and connecting sales numbers across multiple locations and departments.
Who should use it:
If you’re a life science company that would like to improve your operations, QT9 can be an invaluable resource.
Pros & Cons
- Sales order tracking with history details, packing lists and more
- Inventory breakdown screens to pinpoint needs
- Manufacturing scheduling with real-production data
- Must contact for pricing
- Custom reporting can be difficult
Best for Role-Based Solutions
Acumatica
4.2
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
Must contact for pricing
Free trial
No
Standout features
Role-based views and dashboards, barcode scanning and project quote management
Starting price
Must contact for pricing
Free trial
No
Standout features
Role-based views and dashboards, barcode scanning and project quote management
Why We Picked It
Acumatica is a real-time, cloud-based ERP system. It’s equipped with countless modules, such as A/R, A/P, cash management, project accounting, fixed assets, tax management and more. Members of your team can enjoy role-based views and dashboards that are specific to business, finance, information technology (IT), operations, sales and marketing.
This will equip them with the knowledge and resources they need to complete their jobs efficiently and maximize productivity. Through Acumatica’s robust reporting, you’ll also be able to monitor essential KPIs, such as profitability, revenue, operating costs, working capital and customer satisfaction.
Who should use it:
If your goal is to improve the performance of employees in various departments, Acumatica can help.
Pros & Cons
- Barcode scanning for warehouse and inventory transactions
- Role-based reporting to meet the needs of various roles
- Integrations with Shopify, Amazon and BigCommerce
- Must contact for pricing
- Interface could be improved
Best for Manufacturing
Katana Manufacturing ERP
3.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
$99
per month
Free trial
Yes, for 14 days
Standout features
Production planning, manufacturing costs tracker and purchase order (PO) management
On Katana's Website
Starting price
$99
per month
Free trial
Yes, for 14 days
Standout features
Production planning, manufacturing costs tracker and purchase order (PO) management
Why We Picked It
Katana Manufacturing ERP is the ultimate solution for manufacturing companies. It offers product planning features that let you automate material reallocation based on your priorities, track availability for required materials to fulfill sales orders efficiently and uncover risks related to material supply lead times.
With the purchase order management features, you’ll know when to purchase raw materials from suppliers and be able to track supply chain delay risks so that everyone is informed. Plus you can use multiple currencies to convert purchase order values automatically. Katana Manufacturing ERP also simplifies costing and traceability.
Who should use it:
Katana Manufacturing ERP is a smart option if you’re in the manufacturing industry and searching for a well-equipped ERP system.
Pros & Cons
- Real-time costing tool to help you make smart pricing decisions
- Contract manufacturing workflows to gain visibility when working with contractors
- End-to-end traceability for tracing materials, batches and more
- Lowest-tier plan is only for one user
- No calendars or Gantt charts
- Lacks multilanguage and currency options
Best for Nonprofits
Cougar Mountain Denali Summit
3.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
Must contact for pricing
Free trial
No
Standout features
Fraud prevention, prebuilt financial reports and donor and grant management
Starting price
Must contact for pricing
Free trial
No
Standout features
Fraud prevention, prebuilt financial reports and donor and grant management
Why We Picked It
Cougar Mountain Denali Summit is an ERP system with plenty of features for nonprofit organizations. With individual user rights and audit trails, you can prevent fraud and protect your hard work. You may also manage multiple funds and take advantage of built-in Financial Accounting Standards Board (FASB)-compliant reports so that you avoid issues and set your organization up for growth.
Also, Cougar Mountain Denali Summit partners with NeonCRM to help you track fundraising and grants with ease. We can’t forget the interactive real-time key performance indicator (KPI) reports and other custom reporting so you know exactly where you stand financially.
Who should use it:
Cougar Mountain Denali Summit is worth exploring if you’re a nonprofit looking to take your organization to new heights.
Pros & Cons
- Special tools for nonprofits
- Customizable financial reports available
- Fraud prevention features, such as individual user rights and audit trails
- Must contact for pricing
- No free trial
- Can be difficult to use
Best for Financial Management
AccountMate
3.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Starting price
Must contact for pricing
Free trial
No
Standout features
Customer inventory manager, consolidated ledger and bank reconciliation
Starting price
Must contact for pricing
Free trial
No
Standout features
Customer inventory manager, consolidated ledger and bank reconciliation
Why We Picked It
AccountMate is an ERP solution that helps small businesses manage their finances. You can count on the accounts payable module to avoid duplicate invoices and late payments. The accounts receivable (A/R) module makes it easy to complete order entries, returns and more so that you can deliver the highest quality service.
There’s also a general ledger (GL) module with various reports and tools that can help you generate financial statements, create journal entries and more, while complying with the United States generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS). We can’t forget the contact manager module, which connects to Microsoft Office products and lets you simplify the way you manage customer interactions.
Who should use it:
For a flexible ERP system with a focus on financials, AccountMate is the ultimate choice.
Pros & Cons
- Accounts payable (A/P) module to avoid invoice duplicates and late payments
- Bank reconciliation for cash flow management
- Contact manager for managing customer interactions
- Must contact for pricing
- Interface can be confusing
- Slow data uploading
Summary: Best ERP Systems
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Starting price | Free Trial | Standout Features | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| Microsoft Dynamics 365 Business Central |  | 5.0 |  | $70 per user, per month | Yes, for 30 days | Customer return and repair tracking, work order assigning and stock replenishment predictor | View More | ||
| Syspro |  | 4.5 |  | Must contact for pricing | No | Sales analysis, goods in transit system and charge-back management | View More | ||
| QT9 |  | 4.3 | | Must contact for a quote | Yes, for 30 days | Real-time inventory control, manufacturing automation and purchasing management | View More | ||
| Acumatica |  | 4.2 |  | Must contact for pricing | No | Role-based views and dashboards, barcode scanning and project quote management | View More | ||
| Katana Manufacturing ERP |  | 3.9 | | $99 per month | Yes, for 14 days | Production planning, manufacturing costs tracker and purchase order (PO) management | Learn More | On Katana's Website | |
| Cougar Mountain Denali Summit |  | 3.7 |  | Must contact for pricing | No | Fraud prevention, prebuilt financial reports and donor and grant management | View More | ||
| AccountMate |  | 3.7 |  | Must contact for pricing | No | Customer inventory manager, consolidated ledger and bank reconciliation | View More |
What Is an ERP System?
ERP stands for “enterprise resource planning” and describes the process of analyzing business functions for increased efficiency and productivity. Companies have long sought to streamline business processes through the consolidation of internal data. The use of centralized ERP software has revolutionized the way these goals are carried out by integrating once-separate systems. As much as ever, ERP remains a data-driven approach to consolidating and improving business functions. Modern systems, however, afford a greater degree of simplicity, organization and automation to the employees and business leaders responsible for day-to-day operations.
At the core of any ERP system is a central database that’s shared by the many disparate elements of a company. Rather than having separate data collection and management programs for each department—one for sales, one for inventory management, another for production, and so on—an ERP system provides a single hub for it all.
Who Uses ERP Systems?
ERP systems are not just for massive companies—though they have become particularly essential to large, sprawling organizations. Small businesses, including independent retailers and services, may also find ERP software to provide valuable support.
Any business that strives for accurate data collection can benefit from EPR systems, including all businesses that wish to track sales, inventory and finances. ERP is especially popular in manufacturing and production-based fields, but it is now used in areas as wide-ranging as healthcare, e-commerce and nonprofit work.
How Do ERP Systems Work?
With a consolidated database as its foundation, ERP systems can be built out to accomplish a seemingly limitless variety of management and tracking functions. Doing so still requires technical know-how from a third-party ERP system provider or experienced internal staff, but it’s much, much easier for the company at large than the siloed management software systems of the past.
Employees usually interact with an ERP system through a centralized dashboard connected to the core database. This puts access to real-time information from various parts of the company at employee fingertips any time it’s needed. ERP systems may operate and store information on-site or, increasingly, in the cloud.
Benefits of ERP Systems
The most noteworthy advantages of ERP systems include:
- Greater productivity:Since an ERP system can enable you to streamline and automate your core business functions and processes, employees will be able to accomplish more with fewer resources.
- Easy reporting:ERP platforms simplify reporting so you can act on insights and improve performance in real time. Reporting is key if you’d like to make smart, data-driven decisions.
- Increased accuracy: Consolidating all data management under the purview of a single system reduces the risk of human and technological errors, minimizing discrepancies in cross-departmental reporting.
- Easier compliance:ERP systems can automate internal compliance-monitoring tasks and reporting compliance status in real time with a high degree of accuracy. ERP systems also make it easier to implement changes when new regulations or reporting burdens arise.
- Improved agility:To truly stand out among the competition, you must identify and act on opportunities quickly. ERP systems can help you do so through improved operations and access to real-time data.
- Better interdepartmental collaboration: Because departments share similar interfaces when interacting with an ERP system and can see each other’s data, one group never has to be totally in the dark about what’s going on with another side of the company.
- Scalability and integrations: One of the best qualities of an ERP system is that it’s designed to be built upon. An ERP system doesn’t only solve the compatibility issue—it also supports and enhances new systems with its core database. What’s more, it can provide a framework for expanding access to the new software across a company. ERP systems are commonly integrated with material resource planning (MRP) systems,point-of-sale (POS) systems,supply chain management (SCM) systemsandcustomer relationship management (CRM) systems, to name just a few examples.
How To Choose the Best ERP System
When evaluating an ERP system that’s best for your organization, consider core features, cost, the demo and implementation:
Essential Features
- Integrations. As a unifying interface, the best ERP system for your company should integrate data from HR, IT, accounting/finance, CRM and whatever other suites your company uses to coordinate workflows across these areas of your business.
- Shared database. By drawing from one shared database, all connected software systems in the ERP surface real-time data for every user, no matter which module they’re accessing that data from.
- Automation. For cross-functional workflows that involve, for example, both HR and accounting, automations help staff in these departments complete repetitive tasks more quickly.
- Analytics and reporting. An ERP should deliver actionable business intelligence on internal and external factors that impact the entire business.
- Security. Given the sprawl of information circulating in your ERP system, it should keep your data secure. Data encryption, automatic backups, multifactor authentication and system monitoring are just a few examples of security features and measures.
Types of ERP Systems
- On-premise. On-premise ERP software is installed on computers and servers within the organization’s offices or physical locations. It is paid upfront via a one-time perpetual license but costs will vary depending on the size of the business. If your organization is dealing with confidential information, this solution is ideal. Not only will you be able to keep information in-house, but you can also customize the module to suit your unique business processes.
- Cloud-based. This type of software runs on a network of remote servers—instead of an office-based server. A cloud-based ERP does not need hardware, software or specialized information technology (IT) personnel to manage servers. Moreover, it’s cost-effective, easier to maintain and faster to set up than an on-premise ERP. Despite these advantages, some cloud-based solutions offer less personalization and customizability than on-premise solutions. Rather than owning the software, you must rely on a cloud provider as long as your business depends on it.
- Hybrid. Those seeking the best of both worlds can opt for a hybrid ERP, which offers a mix of cloud-based and on-premise ERP solutions. This approach often includes two tiers: an on-premise ERP system for corporate functions (tier 1) and another system to support business units or locations (tier 2). These two tiers combined allow businesses to reduce costs and meet specific needs.
ERP System Cost
Expect to spend upwards of $9,000 per user per month for your ERP system. The total cost of the ERP system itself ranges from $1,740 per month on average for small businesses to $9,330 per month for enterprises. These figures don’t include per-user fees or the cost of implementation, training and maintenance.
Factors that impact cost include customization, number of users and the number of modules you want to incorporate into the ERP.
Pricing models vary, depending on the type of ERP system you’re exploring, whether on-premise, cloud or hybrid. Pricing models may be license-based (typical for on-premise solutions), flat monthly or annual fees, or monthly or annual per-user fees. Some vendors stack these fees, combining a flat monthly or annual fee with a per-user cost.
Make the Most of a Demo
Prior to a demo, give the vendor representative a chance to thoroughly prepare by providing sample data along with all business requirements. The demo should be personalized to your unique business needs and goals, not a canned demo presentation. Prepare an ERP scorecard beforehand that you’ll use to evaluate each of the top picks according to the same key criteria. Also, ask to see desired functions and capabilities in action during the demo. Don’t simply take the representative’s word for it.
Implementation Considerations
Consider the time, cost and scope of resources necessary for ERP implementation before making your final choice. Implementing a new ERP can take six months to over two years. Moreover, will you need to hire an implementation consultant, or does the vendor provide implementation support? If so, at what stages of implementation, and what is the cost? Implementing ERP software typically costs twice as much as the software alone.
Methodology
To determine the best ERP systems in the market, Forbes Advisor considered over 20 of the leading providers in the space and narrowed it down to the top 16 providers. These were then analyzed across five primary categories for a total of 25 different metrics. We then weighted each of the overarching categories based on what matters most to businesses.
Here are the metrics we used to evaluate the top ERP systems:
Pricing – 10%
The best ERP systems are affordable and offer a high value for the price. So we considered pricing, as well as contract lengths, scalability, and the availability of free trials and money-back guarantees.
Key Features – 30%
We placed an emphasis on the key features that matter most to businesses seeking an ERP system. For example, we considered whether the systems are cloud-based for accessibility, on-premises ERP, warehouse management, accounting, real-time updates, reporting and analytics and software integrations for maximum flexibility.
Unique Features – 20%
In addition to the key, must-have features, we also considered the unique offerings of each of the best ERP systems. This includes factors such as automation, budgeting and financial management, customer relationship management (CRM) features, forecasting, human resources functionalities, supply chain management and features designed to meet the needs of manufacturers.
Third-Party Ratings and Reviews – 10%
To get a deeper understanding of what real users think of the systems, we looked at third-party user reviews and ratings. This metric considers not only the average ratings across numerous rating sites but also the number of reviews each provider has to ensure the rating is reflective of a broad user base.
Expert Score – 30%
Our final metric considers our own first-hand experience and expertise. This factors in qualitative metrics such as value for the price, ease of use, support quality and popularity.
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Frequently Asked Questions (FAQs)
What are the different types of ERP systems?
In general, there are three different types of ERP systems. These include cloud-based, on-premise and hybrid solutions.
What are the most common ERP modules?
Each ERP system has its own set of modules. The most common ones, however, include finance, manufacturing, procurement, inventory management, warehouse management and CRM.
Why are ERP systems important?
ERP systems serve as “air traffic control” for business management, centralizing the data and analytics that power a successful, modern enterprise. Without an ERP system, departments within a company tend to build up separate data management structures and software systems, each one addressing a different facet of business operations in what’s called a “siloed” or “unintegrated” approach. Alternatively, ERP systems provide a consolidated, streamlined platform through which all parts of a company can easily share information and develop company-wide solutions.
Can small businesses benefit from ERP systems?
Definitely. While business management only increases in complexity as a company grows, many smaller businesses still find ERP softwareto be essential in 2023. Even local, mom-and-pop businesses still juggle a variety of business elements such as accounting, inventory management, payroll and sales. Of any type of business, small ones likely have the least bandwidth to devote to analyzing and optimizing these various elements, making them a good candidate for an ERP system.
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