Choosing an ERP for a Philippine SME: a practical checklist

An ERP decision is a multi-year commitment. Pick something too small and you'll be migrating again in a year; too big and you'll spend more on consultants than on the software. Here are ten questions that separate a system you'll grow into from one you'll grow out of.

1. Does it keep one ledger, or stitch modules together?

The whole point of an ERP is a single source of truth. A sale, a stock movement, and a journal entry should be the same event seen from three angles — not three databases reconciled overnight. Ask to see a sale post to the general ledger in real time.

2. Is Philippine compliance built in?

Books of Accounts, the BIR return forms, CAS documentation, and local payment rails should be native — not a plugin or an export. If the vendor leans on "your accountant handles that," budget for the accountant.

3. Can it run multiple companies?

Even small groups often have an operating company plus a holding company. Confirm multi-company and multi-currency are supported from the start, with consolidation, rather than as an expensive upgrade tier.

4. How painful is migration?

Ask exactly how your chart of accounts, customers, vendors, items, and opening balances come across — and whether you can run in parallel until trial balances match. A vendor who can't describe the migration in concrete steps hasn't done many.

5. Will your team actually use it?

The best-architected ERP is worthless if staff avoid it. Sit a non-accountant in front of it for ten minutes. If they can raise an invoice without training, that's a good sign.

6. What does it really cost at your size?

Look past the sticker price: per-user fees, implementation charges, module add-ons, and support tiers. Model the cost at your current headcount and at double it.

7. Can your engineers build on it?

Even if you don't need an API today, you will. Check for a documented REST API and webhooks so the ERP can talk to your storefront, logistics, or reporting tools later.

8. How does it handle inventory and costing?

If you hold stock, costing matters. Confirm the system supports your method and posts cost of goods sold to the ledger automatically when stock moves — not in a month-end batch.

9. Is your data portable?

You should be able to export everything — transactions, attachments, history — at any time, in open formats. Lock-in is a hidden cost that only appears when you try to leave.

10. Is the vendor honest about where they are?

A public roadmap and straight answers beat a wall of customer logos. You want a partner who tells you what isn't built yet, not one who demos vaporware.

This article is general guidance for evaluating software and is not tax, legal, or procurement advice specific to your business.