What is ERP Software?

Enterprise resource planning software is an integration tool that combines multiple aspects of an entity into a single computer program. Using various business modules for different functions of business, a company can distribute information more efficiently through this single location of data.

For example, a vendor profile can be created to submit a purchase order. The information on the vendor's profile flows through the accounts payable module, receiving department, cash management, and financial reporting.

For a small business, an ERP system is a breakthrough for efficiency. Instead of replicating information in several locations, a company can simply house all data in one location and restrict access to various aspects of the software based on user profiles.