In the context of today’s service business rush, project management isn’t a side business, it’s your business. You’re in a consulting business, an IT services business, a marketing business, or an engineering business; you require an ERP solution that not only keeps numbers in the ledger but gets you projects on target, on schedule, and budget.

So, the question arises: What ERP best supports project-based workflows?

Alright, let’s jump into the top features a service-based company requires in an ERP, and where to find the best.

What makes a great ERP for project businesses?

Here’s what you look for before we begin naming names:

Project Planning & Budgeting

Can you generate project quotes, assign resources, and monitor budgets?

Time and Expense Tracking

Is it simple for teams to capture time, log expenses, and tie them to a particular project?

Resource Management

Can you put the right people on the right work, and predict utilization?

Billing & Revenue Recognition

Can it handle milestone billing, time & materials invoice, and recognize revenue correctly?

Integration with CRM & Financials

Is it integrated from sales to delivery to accounting?

Reporting & Dashboards

Can you view project profitability, workload, and KPIs in real-time?

Top ERP Solutions for Project-Based Businesses

Let’s see how some of the top ERP solutions support service-based companies.

1. Microsoft Dynamics 365 Business Central (with Project Management module)

Best For: Small to mid-sized businesses seeking Microsoft ecosystem integration.

Strengths:

• Project accounting features are integrated in an integrated manner.
• Time and expense tracking.
• Outlook, Teams, and other Microsoft applications integrations.
• Clean, simple UI with report customization.

Watch Out For:

• More sophisticated PSA (Professional Services Automation) requirements might necessitate add-ons or customization.

2. NetSuite (Oracle)

Best For: Large service firms with sophisticated project and fiscal requirements.

Strengths:

• Native PSA functionality.
• Good project budgeting, billing, and revenue recognition.
• Real-time KPI dashboards for projects.
• Multi-entity and multi-currency.

Watch Out For:

• More costly; It may need more initial implementation effort.

3. SAP Business by Design

Best For: Midsize to large service firms with global operations.

Strengths:

• End-to-end management of the project life cycle.
• Sophisticated resource scheduling.
• Integrated time and expense capture.
• Designed for scale.

Watch Out For:

• Complexity and expense may be too high for smaller organizations.

4. Deltek ERP (Vision / Vantagepoint)

Best For: Professional services companies, architecture, engineering, and consulting.

Strengths:

• Designed for project-oriented businesses.
• General capability in time tracking, billing, and profitability reporting.
• Powerful reporting and analysis.

Watch Out For:

• Less adaptable in other industries than native industries.

5. Odoo ERP (with Project and Timesheet modules)

Best For: Technical-oriented teams and open-source seeking flexibility startups.

Strengths:

• Modular and adaptable.
• Low price with basic project and time tracking features.
• Cloud or on-premises.

Watch Out For:

• Maybe more internal effort is needed to set up and configure.

The Verdict: Which One’s Best?

There isn’t a one-size-fits-all answer. But here’s a not-so-complex cheat sheet:

Final Thoughts

Selecting the correct ERP for your company is more than a matter of features, it’s about compatibility. Consider your business model, project complexity, team size, and growth aspirations.