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What is ERP software?

In short

ERP (Enterprise Resource Planning) software is one system that holds the core administration of a business — finance, purchasing, sales, stock, projects and often HR — in a single shared database, so a fact entered once is the same fact everywhere. The point is not the feature list; it is that there stops being a second version of the truth in someone's spreadsheet.

ERP software (Enterprise Resource Planning) is one system that holds the core administration of a business — finance, purchasing, sales, stock, projects, often HR and payroll — in a single shared database. Enter a supplier invoice once and it is the same invoice in the ledger, the payment run and the margin report. The value is not the feature list; it is that there stops being a second version of the truth living in someone's spreadsheet.

Most Dutch SMEs arrive at ERP the same way: not by deciding to buy one, but by noticing that four systems disagree about the same order, and that someone spends Monday morning reconciling them.

What modules does an ERP system have?

Almost every ERP is sold as a core plus modules. The core is nearly always finance — general ledger, accounts payable and receivable, VAT. Around it sit purchasing, sales and CRM, inventory, project administration and HR/payroll. Sector editions add what that sector cannot work without: production planning for manufacturers, warehouse management for distributors, service and work orders for installers. You pay per module, so the real question at selection time is which two you will actually switch on in year one.

What is the difference between ERP and accounting software?

Accounting software records what already happened, for the tax return and the annual accounts. ERP is meant to run the operation while it happens: stock levels that move when a picker scans, a purchase order that becomes a receipt that becomes an invoice, a project whose hours reach the invoice without retyping. In the Netherlands the boundary is blurry — Exact Online starts as an accounting core and grows outward through modules, while AFAS is sold as an integrated suite from the start.

What does ERP software cost for an SME?

Cloud ERP is priced per user per month, typically a few tens of euros for a light finance seat and considerably more for a full operational one, plus implementation. Implementation is the line that surprises people: data migration, process mapping, configuration and training usually cost a multiple of the first year's licences. A ten-person firm switching on finance and invoicing is a modest project; a fifty-person firm moving production planning is not. Budget for the migration, not the subscription.

When is a spreadsheet still good enough?

When one person owns the data, the volume is small, and nobody else needs the same number at the same time. Spreadsheets fail on concurrency and history, not on size: the day two people edit different copies, or you cannot answer what stock was on a date, you have outgrown it. That is the same threshold that pushes firms from stock control in Excel to a real inventory system.

Where does AI fit into an ERP system?

The useful AI work in 2026 is not inside the ERP; it is around it. An ERP is a well-structured database with an API, which makes it the single best place for an AI agent to read from and write to — matching invoices to orders, drafting quotes from history, flagging a margin that has quietly moved. That is why connecting AI to the ERP you already have is usually cheaper and faster than replacing it.

Frequently asked questions

Do we need ERP before we can do anything with AI?

No, and waiting for one is a common way to lose a year. AI needs a reliable source for the facts it uses, and that source can be your current package.

  • If the data you want answers about already sits in one system with an API, an integration beats a migration.
  • If it is spread over four systems that disagree, fix the disagreement first — that is an ERP problem, not an AI problem.
  • Doing both at once is the most expensive order, because you are debugging the model against a moving data foundation.

How long does an ERP implementation take?

For an SME switching on finance plus one operational module, a few months is realistic; a full multi-module rollout runs longer and is usually phased.

  • The schedule is set by data migration and decisions, not by software installation.
  • Phase it: go live on the module that hurts most, then add the next one after a quiet quarter.
  • A big-bang cutover across every department at once is where SME implementations most often stall.

Should we customise the ERP or change our process?

Default to changing the process. Customisation is the main reason ERP upgrades become painful years later.

  • Customise only where the process is genuinely your competitive difference.
  • Everything else — approvals, coding, reporting formats — is cheaper to adapt than to rebuild on every upgrade.
  • If a vendor needs heavy customisation to fit your sector, that is evidence the wrong edition was selected.
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