Reasons Why Startup Companies Use Cloud ERP Systems

Sistem Anugrah Prima - Quantum leaps in technology have made disruption the norm, creating a very competitive business environment where companies must have agility to continue to develop and survive.

The essence of some successful startups lies in cloud solutions that facilitate these companies by automating critical processes, and simplifying workflows. This can allow these business owners to focus on developing their business. In the digital age business world, which has been increasingly hit by Covid-19 and Russia's invasion of Ukraine, the company has the grateful privilege of having a wide range of cloud solutions to choose from and introducing operational efficiencies.

Cloud ERP (Enterprise Resource Planning) systems are a leading solution that can help businesses automate manual processes, unify data from disparate sources by providing a unified data source, and introduce operational efficiencies.

Below we will look at some of the challenges faced by startups and how cloud ERP systems help startups overcome these problems.


1. Overcoming Financial Report Problems Before IPO

Hardly a day goes by without regulatory authorities around the world considering implementing new requirements on how companies report their finances. Since businesses are under the strict supervision of regulatory authorities, manually handling tedious financial processes can result in expensive fines if errors are discovered.

Initial Public Offerings (IPO) is a type of business that requires close supervision of the financial reporting process. Cloud ERP systems help businesses automate this process and ensure that the business is IPO ready through financial reporting standards that include compliance with IFRS and GAAP, to name a few.


2. Data Silos Due to Lack of Integration

It is commonplace for most startups to have a backlog consisting of best-in-class solutions to solve various problems. However, as your business grows, you will realize that having data from many different sources will actually diminish the power of that data. To make informed decisions and unlock important insights, you need a solution that integrates multiple solutions across your operations, and provides a unified 360 view of your business processes.

Cloud ERP systems come with API capabilities that allow you to integrate other solutions, have a single source of truth, and also prevent you from having data silos. Moreover, cloud ERP systems also provide startup businesses with a real-time view of all their customers and business processes. You can monitor your consumer demands and changing trends, to respond quickly to market changes and consumer demands.


3. Not having a unified view of the subsidiaries

Companies that are expanding and present in other countries often have difficulty standardizing business processes, apart from processing data from subsidiaries manually. This process causes data duplication and human error.

Financial consolidation between companies is an important element in managing a company with subsidiaries. Having a unified view of the business processes and financial health of your various subsidiaries will help you make informed decisions. Cloud ERP systems offer powerful cross-company consolidation functions, which not only help you run your company effectively, but also help you unlock important insights to aid your strategic decision making.


4. Unable to accommodate business growth

Startups on a high growth trajectory, often realize the difference in quickly hosting a workforce of 10 staff and a workforce of 100 staff. As your headcount increases, ensuring all your staff adhere to business processes will become very tedious.

By virtue of its architecture, cloud ERP is built for growth as it scales and allows you to quickly accommodate your growing workforce. You can do this while ensuring total compliance with your long-standing business processes.



Startups today are operating in turbulent times. Being agile allows startups to respond quickly to changing market demands. Integration helps startups unlock new insights. Automation of manual accounting processes and robust financial reporting solutions ensure startups are more than adequately prepared for an IPO.0

Predictive analytics has emerged as one of the key components of efficient supply chain management. If you are a startup operating in retail or another field that requires warehousing, chances are you have experienced some very troubled times recently.

Cloud ERP systems are systems that serve a variety of industries. It is now more important than ever for start-up businesses on a high growth trajectory to implement a robust business management solution, such as a cloud ERP system.

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