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29 Jan

Offset Tax Penalties by Investing in an ERP System in 2015

Ask an operations manager about ERP systems, and you might hear that these setups are too expensive for many businesses to invest in. Savvy operators know that the financial benefits of implementing one of these systems far outweigh the cost of purchase and implementation. The savings in tax offset penalties alone can more than make up for the price of implementing an ERP system. So why is this option the right one for your company?


What are ERP Systems?

ERP, or Enterprise Resource Planning, systems offer automation tools and the ability to integrate your entire operations process. Once in place, your system can handle inventory tracking, scheduling, work assignments, and report generation. By automating these processes, you can reduce the number of staff members needed to tackle simple projects and redirect other staff members to more important job roles.


How Can My Company Offset Tax Penalties for the Coming Year?

The reduction in your workforce that can result from an ERP implementation may equal less money spent on FICA payroll taxes, as well as other expenses related to training and maintaining an employee on your payroll. As with any other legitimate business expense, your investment in an ERP system may be tax deductible. You may also be able to deduct any expenses related to training your staff on how to use this new system.


What Should I Look for in an ERP System?

As you look for an ERP system for your company, it is important to compare the different options that are available. Microsoft Dynamics GP (Great Plains) offers the scalability you need to grow your business without outgrowing your ERP system. This system lets you identify KPIs and industry trends, giving you the tools you need to make fast, smart decisions. Supply chain management features keep your goods moving from the factory to your vendors, giving you a streamlined delivery system.

Microsoft Dynamics SL (Solomon) is ideal for the mid-sized company that has its eye on targeted growth, or larger firms with multi-company needs or a project focus. This system provides a connection from your accounting system to your project managers, streamlining nearly every step in your operations processes. Construction firms and service-oriented businesses will appreciate the way that this ERP integrates contracts, budgets, orders and service requests, making sure that no aspect of your business is overlooked as you work to meet customer deadlines.

Choosing an ERP system for your company’s operation and project management needs can help you to save money on many processes in your business. Add to that the potential tax penalty offsets, and your ERP system does more than pay for itself. Contact Conexus SG today to compare the different ERPs to find the one that meets your business needs and delivers excellence at every step of the way.

(DisclaimerThis isn’t professional tax advice. If you have any questions, ask a professional tax accountant.)

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