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3 Popular Business Management Tools (ERP, CRM, PSA): Which Should You Be Using?

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Efficiency of business processes, proper financial management, and managing customer relationships are three of the most important facets of your business, no matter what kind of business you’re in. Decades ago, managing all of this would have been a lot more cumbersome than it is today, with spreadsheets, paper forms, and archaic databases. But thankfully, today’s ERP, PSA, and CRM business tools make it easier than ever to stay on top of everything. Let’s take a look at these three different software types and how they might help you.

Q: What is ERP?

A: ERP stands for enterprise resource planning. An ERP system helps you manage daily business activities like accounting, manufacturing, procurement, and even project management. The great thing about an ERP is that it ties together many related facets of your business so that they can talk to each other, depending on your business requirements. By compiling transactions and data from multiple sources, your ERP can increase efficiency by eliminating duplication and ensure a single source for necessary data.

No matter what industry you’re in or how big or small your business is, an ERP system can be a vital piece of your success. ERPs are designed around a well defined, common data structure or schema, which helps users access data from multiple processes, using common definitions and a simple user interface. This data can be used in reporting that makes it easier to interpret, so sound business decisions can be made.

Instead of having several different databases and standalone spreadsheets, an ERP brings all of it together to create, use, and store information in a secure, organized repository. It’s always up to date, accurate, and complete. From financial statements to outstanding invoices and supply chain reports, an ERP can give you:

• Business insights with real-time information
• Reduced risk and lower management costs through data integrity and financial controls
• Better cost efficiency with well defined and streamlined business processes
• More user efficiency via a simple user experience interface across functions
• Improved collaboration by sharing things like requisitions, contracts, and purchase orders and more

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Q: What’s a PSA System?

A: A PSA, or professional services automation system, helps service-based businesses manage their core processes. PSA software is usually a good fit for professional services, such as accounting firms, law firms, or consulting companies. A PSA is a good companion to an ERP in running day-to-day business functions if you’re in the IT industry or a managed services provider.

Different PSA tools vary in functionality, with a pretty wide range of possibilities. But a well designed PSA such as Tigerpaw, will have some key functions for automating project management, along with time, expense, and resource management. Your system can help you see — and meet — project timelines and milestones, as well as allocate resources in a way that maximizes the utilization of your staff. For billing purposes, professional services automation can track employee time spent on various projects and tasks, along with the associated expenses. This can help you keep a close eye not only on projected profits, but also help you identify inefficiencies that a process change could help rectify.

One of the main differences among PSA systems is how well they integrate with other software and tools. There are PSA suites that include things like RMM (remote monitoring and management). But even standalone professional services automation tools may offer pretty seamless integration with your other systems, such as your accounting software and CRM.

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Q: What About CRM?

A: The simple definition of CRM is customer relationship management. A CRM system will help your company manage its interactions with customers and potential customers, enabling more effective handling of relationships. The primary goal of a CRM is to improve those relationships while enhancing profitability.

• Identify new potential customers
• Win over current customers and prospects with CRM-identified cross-selling or up-selling opportunities
• Be informed of “next steps” in selling, support, and more
• Manage marketing campaigns
• Know what questions to ask to lead to better service or another sale

A CRM system keeps sales and other staff up to date on the status of each customer, where they are in the sales cycle, what products they have, and what products they might be ready for. It organizes information on all individual customers, users, suppliers, and more into a simple interface. All interactions, services, purchases, and more are visible and easy to interpret.

Through your CRM, you’ll be able to more effectively manage the lifecycle of just about anyone with whom you’ve done business. Everyone from a front-line sales rep to customer service reps, recruiters, and project or account managers can use your CRM system to manage interactions. Anyone in your company who’s been given the right permissions can access information that drives profitability.

Q: Which Type of System is Right for You?

A: If you are losing track of documents, wasting time switching from using one software to another, or feel like your current software is too small and doesn’t store the amount of data you require, your business may be best suited for an ERP software. Even if you are a smaller business an ERP could be right for you, plus it’ll give you room to grow. View some of the main reasons why you might need to switch to an ERP.

As stated, PSA tools are great for service providers like lawyers, business consultants, and IT teams. If you are a business that needs to track billable hours and other expenses for client work, then a PSA software might be the solution you are looking for.

A CRM is great for a sales organization or for people in a sales or customer facing role. If you are trying to grow your business by increasing the number of leads coming to your sales or marketing teams, then a CRM is probably the way to go for you. A CRM can help you manage communication, set reminders, and follow up with leads and build your client base.

Your business may have a need for an ERP, PSA, or CRM system. You may need a combination of two, or all three. Now that you know what each one is used for and how it can benefit your business, you’ll be better equipped to do your homework on which particular system might work best for you.

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