As small and medium-sized businesses (SMBs) grow, they sometimes struggle to manage operations with their current tools. Enterprise resource planning (ERP) is the solution, since it integrates all company operations for easy viewing and management. To scale modern SMBs and aid their digital transformation, ERPs are a valuable investment.

What Is an ERP in Business?

An ERP is a centralized system that connects all operations within an SMB. It brings the finance, supply chains, human resources and every other part of the company together on a unified platform. Because it is a single tool, it provides a comprehensive view of the company’s operations and can yield powerful data when integrated correctly.

4 Types of ERP

ERPs are a beneficial addition to an SMB looking to grow. Business owners should understand the differences among ERP types to choose the best one for their company. Here are the four main ones.

• Cloud: A cloud-based ERP puts all company data on a remote, third-party server. Cloud ERPs are easy to communicate across because everything runs over the network, but they can be vulnerable to cyberattacks without proper security protocols.
• On-premise: On-premises ERPs are the traditional model. SMBs can install them at their data center or at a nearby equivalent. This type of ERP gives companies the most control over their information.
• Two-tier: A two-tier ERP is both on-premises and cloud-based. Companies use this approach as they slowly transition to a cloud model, making operations easier. It is also beneficial when a business expands or merges with another one.
• Hybrid: Hybrid ERPs are both on-premises and cloud-based, but move between the two within a company based on convenience. For example, the business may want its marketing department on a cloud-based ERP, while its financials are on-premises. A hybrid allows them to shift between the two easily.

3 Benefits of ERP for Small-Medium Businesses

The following are a few main advantages to having an ERP as an SMB.

1. Unified Dashboard

ERPs provide a unified dashboard that connects all systems. This can give managers insight into employee performance and provide manufacturers with a clear view of the warehouse. Anyone in the company can access the information and better understand the business's operations. For SMBs, ERPs help move past traditional spreadsheets and provide a modern, technology-driven view of their operations.

2. Sales and Inventory Access

ERPs are particularly beneficial to an SMB's marketing sector because they record sales and display inventory in real time. Marketers can determine which products are most desirable and what types of customers are buying each item. This information can help them tailor advertising to highlight popular items or cater to the appropriate audience, improving overall sales.

3. Efficiency and Collaboration

ERPs provide a centralized dashboard, making it easier for departments to collaborate. Everyone in a business is connected, but sometimes it is difficult for them to communicate. An ERP streamlines this process and enables HR to contact IT or manufacturers to collaborate with the marketing team. Improved collaboration enhances efficiency since workers spend less time trying to get in touch with one another.

What to Look for in an ERP System

When choosing an ERP, SMB owners should consider the following criteria. A good ERP usually has most of these qualities.

• Common database: An ERP must have a common database to unify all departments of a company. This means that finance, sales, inventory and HR are all pulling data from the same single source of truth, eliminating silos and discrepancies. Without one unified source, teams will revert to using separate spreadsheets, and the system cannot be as efficient and streamlined as it should be.
• Analytics and data: ERPs should also have easily accessible analytics and data. Look for systems with built-in, customizable dashboards that can track key performance indicators (KPIs) in real time. Employees must be able to easily find and interpret this data to identify trends and inefficiencies and to make informed decisions to improve the company.
• Integration: An ERP should integrate well between departments. It should also connect seamlessly with the other business tools you already use, such as an e-commerce platform, CRM or specific third-party logistics (3PL) software. Otherwise, the dashboard will be incomplete and will not streamline processes as intended.
• Automation: While it is vital to maintain a human touch at times, especially when trying to resolve urgent problems, ERPs must also include automation capabilities to streamline workflows and reduce employees' burdens. Features might include automating repetitive tasks like invoice processing, order entry and financial report generation. This frees up employees to focus on innovative solutions and big-picture initiatives.

5 of the Top ERPs for SMBs in 2026

Here are some ERP systems SMBs can implement to improve efficiency.

Microsoft Dynamics 365

Microsoft Dynamics 365 is a large, cloud-based ERP with a wide range of applications. It is modular, allowing businesses to start with what they need (like Sales or Finance) and add more functionality as they grow. It is also efficient, offering real-time insights through its powerful data platform and deep integration with other Microsoft products like Office 365 and Power BI.

Business Central

Business Central is a part of Microsoft Dynamics 365, but specializes in SMBs. It offers strong financial management, supply chain and manufacturing capabilities in a single, unified solution. It also automates processes to streamline workflow and uses AI-powered forecasting to provide real-time insights for better decision-making.

Oracle

Oracle Fusion Cloud is another cloud-based ERP. By leveraging AI and automation, it provides businesses with real-time insights and adapts to changes in the market efficiently with automatic updates.

SAP S/4HANA

SAP S/4HANA is a powerful ERP created by SAP — primarily for larger enterprises, but with solutions tailored for SMBs. Its key feature is its in-memory database, which allows for real-time analytics and transaction processing on massive datasets. It uses automation, AI and machine learning for optimal performance in industries like finance, supply chain and manufacturing.

Sage Intacct

Sage Intacct is a cloud-based financial management and accounting platform that functions as a specialized ERP for many SMBs. It is particularly strong in its handling of complex accounting processes, such as subscription billing and multi-entity consolidation. It also uses automation and AI to streamline financial workflows and provide deeper visibility into company performance.

The Top-Rated Partners to Help Implement Each ERP System

Choosing the right ERP software is only half the battle. Implementing it successfully — a process that includes migrating data, configuring workflows and training your team — is a complex project that can disrupt your business if not managed correctly. Thus, many SMBs choose to work with a specialized implementation partner. These firms bring deep technical and industry-specific expertise to ensure your transition is smooth, on-budget and tailored to your unique business processes.

After reviewing the top ERPs, SMB owners should choose a reliable partner with experience in whichever system they select. The following are some of the top partners with specializations in each of the abovementioned ERPs, chosen based on capabilities, customer ratings and years of experience with the specific ERP system. 

1. Best Business Central / Microsoft Dynamics 365 Partner: ArcherPoint

One of the best Business Central partners, ArcherPoint has been operating since 2002 and provides expert business analysis and functional consulting. The company is a certified Microsoft Dynamics Solutions Partner. ArcherPoint provides personal, comprehensive service to clients, offering cloud management expertise for a smooth transition.

2. Best Oracle Partner: Protiviti

The best partner for Oracle ERP is Protiviti, which works with Oracle to help maximize clients’ businesses and implement internal controls. It also audits sensitive data and offers a risk-free application security design for peace of mind. Protiviti has deep industry and functional knowledge, as well as expertise in compliance requirements.

3. Best SAP S/4HANA Partner: Panaya

Panaya is the best partner for SMBs utilizing SAP S/4HANA. It uses AI and smart testing to help with the transition. It also provides visibility throughout the migration to simplify the process and minimize business disruptions. Panaya tailors its products for various SAP needs and provides auto code corrections and impact analyses when necessary.

4. Best Sage Intacct Partner: Armanino LLP

Armanino LLP is ideal when implementing Sage Intacct. The company has worked with Sage for over a decade, boosting credibility. It reduces the closing process and provides accurate data migration. It also enables AI features in the financial department, automating billing. 

ERPs as an Investment

ERPs are a significant investment for SMB owners looking to streamline growth and improve adaptability. Interested businesses should evaluate their current operations and explore ERPs as a possible solution to improve the overall processes within their company.