To help you choose the right ERP solution for your business, we found and ranked the best cloud systems today using our advanced review methodology.
- Dynamics 365: Best Overall
- Odoo: Best Customization Options
- SYSPRO: Best Manufacturing ERP
- NetSuite: Best for Global Operations
- SAP Business One: Best for Growing SMBs
- Epicor Prophet 21: Best Distribution ERP
- Deltek Costpoint: Best Government Contracting ERP
- Sage Intacct: Best Financial Management
- Acumatica: Most Scalable
- QT9: Best Life Science ERP
1 Dynamics 365 - Best Overall
Why we chose it: Microsoft Dynamics 365 Business Central is our top-picked cloud ERP software for small and medium businesses. We chose Business Central because of its friendly accounting module and integration with Microsoft Suite. You can create quotes, orders, and invoices directly in Outlook.
While Business Central lacks capabilities for complex manufacturing operations, it offers an integrated CRM to help manage customers more effectively. It also has a familiar interface like MS Word and Outlook, so businesses already comfortable with those products will feel right at home.
Dynamics 365 Business Central can be deployed completely on the cloud and operates the same way on iOS Android and Windows devices. This is a great plus for businesses looking to switch to the cloud and collaborate between departments.
2 Odoo - Best Customization Options
Why we chose it: Odoo is one of the market’s most configurable cloud ERP software. It can be tailored to a business’s specific needs by selecting what modules they want to use and pay for and leaving out the ones they do not. Because Odoo offers many modules included within its platform, a business no longer requires mixing and matching third-party programs to operate.
After testing the system, we found that more complex customizations, such as configuring complicated manufacturing and production operations, require a deeper understanding of the Odoo platform. However, a business can always partner with an Odoo Expert to create custom modules through Odoo’s open-source platform to fill the gaps and provide automation where other systems might lack. Odoo’s broad customization and low cost to get started make it a top pick for cloud ERP solutions.
3 SYSPRO - Best Manufacturing ERP
Why we chose it: SYSPRO Cloud ERP can be used across many areas in the manufacturing industry. It supports engineer-to-order, make-to-stock, mixed-mode operations, and even distribution. SYSPRO has manufacturing-specific features, including production planning, job costing, and inventory management.
We found that SYSPRO can integrate with a wide range of AI and IoT systems, allowing businesses to connect their manufacturing equipment directly to the platform. It can be hosted on the cloud and accessed through mobile devices, offering both hybrid and on-site deployment.
Although the initial cost may be higher for smaller manufacturing operations, its friendly UI and industry-specific modules make it a top pick for manufacturers looking for a cloud solution.
4 NetSuite - Best for Global Operations
Why we chose it: NetSuite has been a pioneer in the ERP industry for many years. Oracle designed NetSuite from the ground up for cloud deployment, allowing users to collaborate across time zones and maintain visibility over international subsidiaries. NetSuite offers multi-currency, multi-entity, and multi-location support, making it a top pick for businesses with a global presence.
Our research found that NetSuite is primarily used in wholesale distribution, manufacturing, construction, and the professional service sectors. However, it falls behind in formula-based manufacturing environments and can be a bit overkill for a small business with fewer than 10 employees.
5 SAP Business One - Best for Growing SMBs
Why we chose it: We found SAP Business One a top pick for growing a small or medium company due to its ability to consolidate most core business functions. An organization can manage accounting, inventory, purchasing, and CRM capabilities in a single platform without jumping between separate applications.
SAP Business One grows alongside SMBs and can easily accommodate more users and third-party integrations, with SAP Crystal Reports and Warehouse Management Software (WMS). We also found its pricing friendly for SMBs as it offers a variety of licensing models that allow a small business to grow into the system and expand when needed.
6 Epicor Prophet 21 - Best Distribution ERP
Why we chose it: Epicor Prophet 21 is a cloud ERP designed to meet the needs of distribution and wholesale operations. Epicor employs the latest technology to refine inventory management, order tracking, and warehouse operations crucial to HVAC, electrical, plumbing, and building supply distributors.
Our analysis found that Prophet 21 has integrated modules to manage everything from quoting to shipping and after-sales services. Which can help grow a distributor’s value-added services in manufacturing, rentals, and field services.
Although Epicor has a deep history in the distribution market, users have found customization and support lacking even for tech-savvy employees. Some users find it challenging to use without a dedicated team to manage the system.
7 Deltek Costpoint - Best Government Contracting ERP
Why we chose it: Deltek Costpoint is our top pick for government contractors due to its project-based accounting and DCAA compliance. However, any project-based business can benefit from Costpoint’s centralized platform for project management, human resources, and accounting.
DCAA compliance requires accurately tracking and allocating employee time to specific projects and tasks. We found Costpoint’s automated time tracking, geolocation tracking, and audit trail of time entries a considerable time-saver for government contractors.
While a few users have described the user interface as archaic and requiring “too many clicks,” government contractors can rest easy knowing their data in the cloud meets both FAR and DFAR cybersecurity standards.
Find out more about DCAA Compliant ERPs.
8 Sage Intacct - Best Financial Management
Why we chose it: Sage Intacct is an ERP engineered specifically for the cloud. It stands out for its financial management, enabling a business to manage multiple subsidiaries, departments, and currencies within a single platform. Sage Intacct has dedicated modules for general ledger, cash management, accounts receivable/payable, and purchasing, and is even HIPAA compliant.
Sage Intacct is the only ERP endorsed by the American Institute of CPAs (AICPA) and we found it to be one of the highest-rated programs for customer satisfaction. This makes it a top pick for businesses searching for strong financial management.
9 Acumatica - Most Scalable
Why we chose it: Acumatica is a top pick for scaling businesses as it allows users to implement only the required modules. Acumatica includes core modules for cash and financial management which are crucial for a growing company to stay on top of its cash flow.
We found the industry-specific editions for manufacturing, distribution, and retail/eCommerce to be a huge benefit. Acumatica enables a business to select a preconfigured solution specific to its industry needs without much customization.
Although getting pricing information requires a consultation call, Acumatica’s cloud deployment allows a business to get started without investing in any back-end IT framework.
10 QT9 - Best Life Science ERP
Why we chose it: We found QT9 a great fit for organizations in life sciences looking for an ERP. Pharmaceutical, medical device manufacturing, and biotech organizations that face strict regulatory requirements can integrate QT9 ERP with QT9 Quality Management to handle the most stringent regulations.
QT9 integrates supply chain management for corporations with a vast range of products that require unique handling and storage conditions. We found that QT9 optimizes inventory levels and allows manufacturers to drill down to their raw materials to reduce costly waste.
Both the cloud-based and on-premise deployment options allow businesses of all sizes to take advantage of QT9 ERP. A start-up medical device company can streamline implementation on the cloud or a sizeable biotech corporation can install QT9 on its preexisting infrastructure.
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What Is Cloud ERP Software?
Cloud ERP software is an integrated suite of applications run in a hosted environment and accessed with an internet connection.
A type of ERP software that is dedicated to operating your business processes “in the cloud”, cloud-based ERP provides real-time access to your data by offering access to multiple types of devices that span different on-site and off-site locations.
Cloud deployment can also be referred to as Software-as-a-Service (SaaS) and is in contrast to a traditional on-premise or locally-hosted deployment that operates on a company’s own infrastructure.
Like a traditional enterprise resource planning system, cloud ERP options can meet all business processes, including financial management, supply chain management, inventory management, project management, human resources, and more.
Cloud-based ERP solutions have grown in popularity due to it’s lower upfront costs. They are traditionally billed on subscription-based pricing models, which means their costs are stretched out over the course of ownership, rather than through a heavy upfront investment.
Cloud ERP software also gives businesses a fully functionality solution out of the box and typically requires less customization.
Features of Cloud ERP Software
Cloud ERP solutions will provide you with the same features as a locally hosted enterprise resource planning (ERP) option with an increased level of accessibility. Examples include:
- Financial Management: Includes standard accounting such as a general ledger to monitor income and expenses via accounts payable and accounts receivable.
- Inventory Management: Manages inventory costs, monitors stock levels, prepares purchase orders, creates pick and pack lists, provides traceability, and more.
- Supply Chain Management: Tracks your products from ideation to receipt by the customer. Includes order management, bill of materials, warehouse management, and material resource planning (MRP).
- Customer Relationship Management (CRM): Provides basic management of prospects and customers and marketing efforts. More robust options are sold as a stand-alone.
- Business Intelligence Systems: Provides basic financial reporting as well as analytics and dashboards related to other business areas. More robust options are sold as a stand-alone.
Benefits of Cloud ERP Software
What are the benefits of cloud ERP solutions versus on-premise ERP software? Given the remote accessibility of the systems, one may look to real-time collaboration on documents or the ease of access using a mobile device such as an iPhone or Android device.
Understanding the differences between cloud ERP and other ERP systems will allow you to compare the pros and cons and decide what is right for your business.
Get Up And Running Faster With Expedited Implementation Times
Most ERP software implementations can take anywhere from 12 weeks to 2 years, depending on how complex your needs are, the number of users that require training, and the level of customization required.
For cloud ERP software, the implementation times are much faster. In fact, web-based ERP software can be configured in as little as 24 hours. Less time on implementation means your business will have more time to focus on business processes that improve your bottom line.
Increased Security Through Continued Support
Your ERP system contains some of your most critical business information surrounding your company’s financials and sales data. Keeping this data away from the wrong individuals is crucial to the success of your business.
For this reason, many businesses may hesitate to store their data offsite–the case for many cloud hosting providers.
Most cloud ERP software providers will offer enhanced security measures that protect your data. You’ll want to vet your cloud vendors to ensure they have secure hosting environments.
Many, if not all, cloud ERP vendors have been forced to develop advanced security to avoid losing business to other more established vendors.
The positive to all of this is the availability of 24/7 support. Cloud-based ERP software allows for easier fixes through remote access, meaning your problems can be fixed more easily and won’t always require someone to come out on-site.
Scale Your Business At The Right Speed
Many small businesses want their ERP software to handle all their needs, while only paying the price of out-of-box software such as QuickBooks Online.
Unfortunately, many businesses will run into a common conundrum: Do you purchase a less expensive solution now and upgrade in a few years, or do you purchase a more expensive but scalable solution that your business can continue to grow around?
The second option will be the most affordable over time while allowing you to develop a great relationship with an ERP vendor. However, businesses may be turned off by the initial start-up costs for implementation and training.
However, having the right cloud ERP software in place from day 1 will ensure your business grows and scales appropriately. As new employees enter your company or your list of vendors and customers grows, you won’t have to install new hardware or deal with expensive upgrades.
Cost of Cloud ERP Software
Cloud ERP software will require a month-to-month service cost to maintain the use of the software. Some software options advertise costs as low as $40/month/user to get started, such as our top pick Dynamics 365 Business Central.
To determine how much your business will pay, you’ll want to consider how much you’ll need of the following:
- Users
- Cloud Storage
- Continuous Updates
- Level of support
With cloud ERP software, your business is not only paying for access to the software but also a variety of services (listed above).
The convenience of paying for the software over the course of ownership, rather than as a bulk upfront purchase cost, is one of the most distinct advantages of cloud ERP software pricing.
That also means there are little to no hardware costs, which means you won’t need to pay staff to maintain complicated hardware.
What Are The Best Free Cloud ERP Options?
Generally, a free ERP may be a slimmed-down version with basic functionality, intended to get customers in the door and upgrade to a paid version once needed. However, there are examples of truly free open-source options:
Odoo is an open source cloud ERP software that provides developer and community-built apps with popular shipping and e-commerce integrations.
Odoo provides free access through its community version and offers free applications through user communities online. However, official Odoo apps will come at a cost. Odoo apps can range anywhere from $12-24/month.
ERPNext is an open-source software that is 100% free to get started with if you are self-hosting the solution. If you require ERPNext to host the solution (and if you require support) you’ll need to look at their paid options.
Their paid versions start at $5/user/month and all have a 14-day free trial. Whatever route you take, ERPNext will provide a wide variety of functionalities which include accounting, HR & payroll, manufacturing, sales and purchasing, and more.
Advantages of Cloud ERP Over On-Premise ERP
The difference between cloud ERP software and its on-premise counterpart is the ability to be modular, flexible, and of course mobile.
Cloud ERP that is modular will allow you to add on applications (modules) at your own pace. These options will be priced accordingly based on how many applications you have.
As your solution operates in the cloud, upgrading (adding on functionality) down the road shouldn’t include a long or complicated upgrade/install process.
A flexible cloud ERP software will give you the freedom to add and remove functionality as needed. For example, it will adapt to changing product costs, payment acceptance methods, and changes to your shipping methods.
If customers let you know your quote-to-invoice process is slow or redundant, you’ll need your software to adjust to meet customer demand. The bottom line is that your company can respond appropriately to market feedback.
Being mobile is a feature that must be utilized with a cloud ERP system. Mobility lets your employees access data anywhere and from any device.
This is good for employees working from home, as they require no software installation to use their devices outside of the office.
In addition, workers in the field who need quick access to financials, sales orders, or project management capabilities can easily bring up what they need to review, sign off on, approve, and more.
How Do You Choose The Best Cloud ERP Software?
When a small business has outgrown the needs of its online accounting system, it will look into purchasing additional software to meet increased financial, production, or operational needs. Cloud ERP software provides a fully integrated approach rather than attempting to integrate the capabilities of multiple systems.
To determine if small business ERP software is the best choice to run your business, you’ll need to ask yourself the following questions:
- Do you prefer having your data secure on your company’s own infrastructure (such as a server you manage) or the freedom to access your data from multiple locations?
- Do you have a technical IT and/or enterprise systems background?
- What is your monthly budget for software?
For small businesses looking to jump to a cloud ERP option, security, ease-of-use, and pricing will be the biggest deciding factors in choosing the right option.
- Security: Cloud ERP software stores your data online (in the cloud), so you’ll need to be comfortable having your data stored off-site, or not within the confines of your own company’s network. This is usually at a hosting site owned and managed by the software developer, but can sometimes be a 3rd party such as a reseller who offers their own cloud hosting environments.
- Ease-of-use: Most cloud ERP software is geared for use by multiple departments with varying backgrounds, and doesn’t require an extensive background in information technology.
- Pricing: Cloud ERP systems are billed on a subscription-based pricing model, meaning you’ll pay on either a monthly or annual basis to have access. There may also be upfront costs for services such as implementation or training, depending on how complex your needs are.
To determine the level of security, the ease of use needed, and the price ranges you should look into, you’ll want to ask the following questions:
- What cloud model are you pursuing? Infrastructure as a service (IaaS), platform as a service (PaaS), or software as a service (SaaS)?
- Who will be in charge of maintaining security, applying patches, provisioning users, and limiting access?
- What compliance and legal mandates do you need to worry about when recording customer data?
- What levels of automation are available in your desired solution for a “must-have” application?
- How much time is spent doing manual methods that could be automated with this software?
- What type of hardware configuration is needed, if any?
- What level of data backup and storage are you looking for?
- Are any integrations with popular tools (such as Salesforce for your CRM) needed?
