The Top Choices Of Cloud-based ERP Software For Small Businesses In 2025

Have you decided to take the leap, and invest in a cloud-based ERP software for your small business? If so, that’s great; you’ve taken your first step towards streamlining your operations, boosting efficiency, and driving growth.

However, with numerous options available in the market, choosing the right cloud-based ERP software for your unique business needs can be a daunting task. Therefore, it's crucial to understand that the best cloud-based ERP software for your small business will depend on factors such as your industry, company size, and specific requirements. Different ERP solutions excel in various areas, making them more or less suitable for businesses in different sectors.

In this blog post, we'll explore the most popular choices of cloud-based ERP software for small businesses. We'll delve into the individual strengths and benefits of each option, and help you gain a clear understanding of the top contenders in the cloud-based ERP software market, so that you may make an informed decision that aligns with your business goals.

Why Are Cloud ERP Software An Ideal Choice For Small Businesses? Here Are Five Compelling Reasons.

Why Should Small Businesses Choose Cloud-Based ERP Software Over On-Premise?

Before we begin, let’s have a refresher on why a small business might want to choose a cloud-based ERP software over an on-premise alternative.

An on-premise ERP software, by definition, is hosted on server hardware that has to be paid for and installed on the premises of a business. This requires significant initial investments that could potentially stretch the limited resources of a small business.

On the other hand, a cloud-based ERP software - because it's hosted on the cloud - doesn't require the same server hardware, which makes it more affordable for the small business in question.

While both options have their merits, cloud-based ERP stands out as the preferred choice for many small businesses due to several compelling benefits;

Lower Upfront Costs

Cloud-based ERP software offer reduced upfront costs compared to on-premise solutions. Small businesses can avoid large initial investments in hardware, software licenses, and IT infrastructure. With cloud ERP software, you pay a subscription fee, usually on a monthly basis, making it more affordable and predictable.

Faster Implementation and Time-to-Value

Implementing a cloud-based ERP software is typically faster and less complex than an on-premise solution for a small business. The vendor handles the infrastructure setup and maintenance, allowing your business to focus on configuration and user training. This accelerated implementation timeline means you can start realising the benefits of your ERP software sooner.

Scalability and Flexibility

As your small business grows, a cloud-based ERP software can easily scale to meet your changing needs. You can quickly adjust user counts, data storage, and functionality without the need for expensive hardware upgrades or IT support. This flexibility allows you to adapt to market demands and seize new opportunities more efficiently.

Automatic Updates and Maintenance

With cloud-based ERP software, the vendor is responsible for maintaining the system, including installing security updates and feature upgrades. This ensures that a small business always has access to the latest technology and improvements without the need to dedicate resources towards maintaining a dedicated IT staff, or face disruptions to their operations.

Accessibility and Collaboration

Cloud-based ERP software enable your team to access critical business data and applications from anywhere, at any time, using any device with an internet connection. This enhanced accessibility promotes collaboration and productivity, especially for remote or distributed teams.

While cloud-based ERP offers numerous advantages, it's essential to carefully evaluate your specific business needs and consider potential drawbacks, such as data security concerns and customisation limitations. However, for many small businesses, the benefits of cloud-based ERP far outweigh the risks, making it an increasingly attractive option for driving growth and success.

Key Factors to Consider When Choosing A Cloud-based ERP Software

Factors to consider when choosing a Cloud-based ERP software

Selecting the right cloud-based ERP software for your small business is a critical decision that requires careful consideration of several key factors. To ensure you choose a solution that aligns with your unique needs and goals, keep the following points in mind:

Pain Points In The Business

Start by thoroughly assessing the pain points your small business is experiencing which led you to decide on acquiring a cloud-based ERP software in the first place. For example, your operations might currently be managed via manual processes and unconnected systems, leading to inefficiencies, human errors, and duplication of effort.

Other pain points you might be looking to solve could be a lack of real-time reporting hindering decision-making, or data silos hindering collaboration and communication between departments.

Scalability and Flexibility

Another factor to consider is how scalable you need your solution to be. By its nature, a cloud-based ERP software is much more easily scaled in line with the growth your small business experiences over time.

On the other hand, cloud-based ERP software also tend to be less flexible and customisable than their on-premise counterparts. With that in mind, it's best to choose one that strikes the right balance between your small business's need for scalability and flexibility respectively.

Integration Capabilities

Ensure that the cloud ERP software you select can seamlessly integrate with your existing systems and third-party applications. This will help streamline your processes and avoid data silos.

For example, it's easy to extend the capabilities of Microsoft Dynamics 365 Business Central by finding and installing third-party apps through Microsoft AppSource. The same goes for Oracle NetSuite, with its own SuiteApps store.

Business Central Users Tend To Overlook The Utility Of Microsoft AppSource. Find Out How It Makes Extending The Capabilities Of The ERP Software Easy.

User Experience and Adoption

Consider the user-friendliness and intuitiveness of the cloud ERP software. A solution with a modern, easy-to-use interface will promote faster user adoption and reduce training time.

For example, as part of the Microsoft family of software solutions, the user interface (UI) of Business Central greatly resembles that of other Microsoft productions. This, plus its seamless integration with Outlook, make it easier for employees of small businesses to pick up and start using the cloud-based ERP software.