What is an ERP and Some Examples
- Blake Johnson
- 14 hours ago
- 5 min read

An Enterprise Resource Planning (ERP) system is a software that integrates core business functions like accounting, supply chain, HR, and operations into one unified platform. In fact, a study reports that 66% of organizations with an ERP system for over a year experienced improved operational efficiency.
Many CFOs, finance leaders, and FP&A teams rely on ERP systems every day, but what exactly are they, and how do they tie into finance?
What is an ERP?
An ERP is a type of software that organizations use to manage day-to-day business activities, including accounting, procurement, project management, inventory, supply chain operations, and compliance.
Instead of keeping data in silos, an ERP system centralizes information across departments into one integrated platform. This gives businesses a single source of truth, ensuring that decision-makers — from operations managers to CFOs — have access to accurate and real-time information.
Put simply, if you’ve ever wondered what is enterprise resource planning, it’s the backbone that ties together people, processes, and technology across an organization.
What Does an ERP Do?
An ERP system is designed to improve efficiency by:
Centralizing data so that finance, HR, operations, and supply chain teams all work with the same information.
Automating manual processes such as reconciliations, invoice approvals, and procurement workflows.
Improving visibility by giving leaders access to dashboards, reports, and KPIs across the business.
Reducing errors by standardizing workflows and minimizing redundant data entry.
For finance and FP&A teams, ERPs are especially powerful. They automate core accounting processes like accounts payable, accounts receivable, and financial reporting. This allows finance leaders to focus more on strategic activities like forecasting, budgeting, and scenario planning.
Why ERPs Matter for Finance and FP&A
Finance teams are often the heaviest users of ERP systems, and for good reason. At their core, ERPs consolidate data from across the business — procurement, sales, HR, inventory, and more — into a single, integrated system. This centralized hub ensures that financial records are consistent and reliable, which makes it far easier for finance leaders to produce accurate reports, track performance, and support compliance requirements. In fact, many experts consider ERP systems the foundation of FP&A because they provide the clean, structured financial data needed for forward-looking insights.
For example:
Accurate Actuals - ERP systems ensure that historical financial data, such as revenues, expenses, assets, and liabilities, are captured and recorded correctly. This accuracy is critical for regulatory compliance and serves as the baseline for planning.
Seamless Forecasting - FP&A platforms can then pull ERP data to generate forecasts, variance analyses, and financial models. By eliminating manual consolidation from spreadsheets, teams gain more time for interpretation and strategy.
Integrated Workflows - Connecting ERPs with FP&A software creates a continuous flow of information, turning static reports into dynamic, real-time insights. CFOs and their teams can drill down into transaction-level data while simultaneously modeling scenarios for the future.
This combination of ERP and FP&A doesn’t just improve accuracy, but it also transforms the finance function. By automating reconciliations and consolidations, companies can shorten month-end close cycles, free teams from repetitive manual work, and give decision-makers a clearer picture of performance. More importantly, this integration strengthens collaboration between finance and other departments by providing shared access to data and dashboards.
For CFOs, the outcome is powerful: a single source of truth that enables faster, smarter decisions, improves agility in volatile markets, and empowers finance to act as a true strategic partner to the business.
Types of ERP Systems and Their Role in Finance & FP&A
ERP systems come in many forms, each designed to address different business requirements. While no single list can capture every option available, the following categories highlight the most common types. For finance teams and FP&A leaders, understanding these systems is critical because when paired with FP&A software, ERPs become the backbone of automated forecasting, planning, and analysis.
Cloud ERP
Cloud-based ERP platforms are hosted remotely and accessed via the internet. With their subscription-based model, these systems offer scalability and flexibility without heavy upfront infrastructure costs. Updates and maintenance are handled by the vendor, which frees internal teams from technical burdens. For finance and FP&A, cloud ERPs integrate seamlessly with automation tools while pulling real-time transaction data directly into forecasting models and dashboards for faster, more accurate insights.
Industry-Specific ERP
Some ERP solutions are designed with tailored functionality for industries such as manufacturing, healthcare, or financial services. These systems include specialized modules—like supply chain management for manufacturers or compliance tracking for banks—that reflect sector-specific challenges. For CFOs, these ERPs provide finance teams with context-specific data that FP&A software can use to generate meaningful, industry-aligned forecasts and KPIs.
On-Premise ERP
With on-premise ERP solutions, companies purchase licenses and host the system on their own servers. This gives organizations full control over both the software and sensitive financial data. It’s highly customizable, making it easier to integrate with existing financial systems. However, this option requires significant IT resources for ongoing updates, security, and maintenance. For FP&A teams, connecting on-premise ERPs to planning tools can automate reporting and variance analysis, so that finance leaders always have reliable historical data at hand.
Open-Source ERP
Open-source ERP platforms give companies direct access to the source code, allowing for extensive customization and flexibility. This can be ideal for organizations with unique business models or niche financial processes. However, open-source solutions often demand more technical expertise to implement and maintain. When integrated with FP&A tools, open-source ERPs provide a highly adaptable foundation for automation, enabling finance leaders to build workflows and models that match their exact requirements.
Small Business ERP
For small and medium-sized businesses (SMBs), lightweight ERP solutions provide essential functions at a lower cost and with faster implementation times. While not as robust as enterprise-level platforms, they are easier to adopt and require less customization. Finance and FP&A teams at SMBs can still connect these systems to planning tools, automating everything from expense tracking to cash flow forecasts, without overloading limited resources.
Tiered ERP
Tiered ERP systems offer different levels of complexity depending on the organization’s size and growth stage. Companies can start with basic modules and add more advanced features as they scale, such as foreign currency management when expanding internationally. For finance and FP&A teams, tiered ERPs provide scalability, ensuring that as business needs grow, automation in forecasting, consolidation, and scenario modeling grows with them.
Why Integration Matters More Than the ERP Alone
The bottom line? An ERP system integrates core business functions into a single, streamlined platform. For finance leaders, it’s the essential foundation for accurate data and efficient workflows. But the real power emerges when ERPs are paired with modern FP&A software. Together, they enable finance teams to automate processes, enhance visibility, and deliver the insights organizations need today.