The Business Report - Essay Example

The selection of simple accounting software may yield losses because of high chances of misplacing information. Besides, some of these strategies have limited capacities to enable smooth integration of all facets of business, as well as the centralization of the data sources. Therefore, a start-up IT company will begin with Excel software because it is the cheapest. However, with increasing demands, growing customer base and the complexity of financial, sales, logistics, and other operations, such companies will be forced to seek alternative packages that match with the robustness of the work.

Therefore, the Enterprise Resource Planning (ERP) would be the most appropriate solution. However, ERP services are provided by different vendors, the most genuine and global leader being SAP. Packages from SAP exist in four categories, which depend on the size of the company and the cost available for investment. SAP packages are most robust approach because they synchronize and integrates data from the customers with the data from the sales of product and other related items. For this reason, the system makes it possible to store huge data and connect the various items and access them when needed or update the information when needed as opposed to excel.

Selection of appropriate SAP package is necessary for the IT firm along its growth process. It minimizes the cost of operation and increase the output because of the efficient coordination of the business and the ability to run multiple items simultaneously. The startup companies lack enough resources to invest in purchasing and implementing the ERP packages. Such companies would need to use the cheapest available packages like Excel. The spreadsheet is the most appropriate package for recording and storing information on purchasing, sales, storage, customer information, and finances.

The package