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Now is the Time to Invest in Business Software!

00283355 “Informed small and mid-sized companies understand that a stable, efficient and scalable infrastructure is essential to meet the expectation of dependable and sustainable future business growth,” writes Cindy Jutras, research fellow and group director of enterprise applications at Aberdeen Group, in a recent report on the evidence of ERP as the integral part of any company’s growth strategy. (The report ERP in SME is available with registration at

Many companies look at total cost of ownership (TCO) rather than the benefits and ROI realized from features and functions previously not provided and the automation of previously manual processes, which emerged as the top two business values gained through ERP upgrades over the past three years. (Aberdeen’s Report ERP in the MidMarket)

Small and growing companies tend to invest more in resources that directly fuel growth, rather than infrastructure. However, Jutras maintains that as companies exceed the threshold of “small” and emerge into becoming full-fledged mid-sized enterprises, ERP can be a true enabler in the quest for revenue and profits. To compete in this economy and grow business, upgrading your antiquated software or a simple accounting software package by investing in software like Tribute or TrulinX is required.

Jutras states that ERP provides a framework for standardization of business processes and will enable business to remain competitive in the years of prosperity ahead. From the end users perspective the key benefits gained from integrated ERP include:

  • Streamlining and automation of manual processes
  • Visibility to data and also to business
  • Compliance with fiscal reporting requirements
  • Better control over inventory and schedules
  • Improved customer service and response times

In addition, there are significant tax advantages for investing before the end of the year. The Small Business Jobs and Credit Act of 2010 (H.R. 5297 effective 09/27/2010) had a substantial (and welcome) impact on Section 179. The biggest impact is that it increased Section 179's limits, almost doubling them. This benefit will allow you to expense your entire purchase in this year, instead of spreading the depreciation out over five years, as is typical.

This will mean a substantial boost to your bottom line this year. But to get the deduction for tax year 2010, you have to act now, as once the clock strikes midnight on 12/31/2010, Section 179 can't affect your 2010 profits anymore.

Businesses decide to invest in ERP systems for a number of reasons, but it all boils down to one main benefit: profits, states Eric Kass in his article 6 Steps to ERP Profits. ERP systems streamline data processes and eliminate waste to create the most efficient company possible, leaving more room to get things done and turn a healthy profit. ERP is designed to hike revenues even higher than many businesses thought possible. With the right ERP system, like software offered by Tribute, Inc., a good business can become a great business.

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