Taking a business public (an Initial Public Offering, or IPO) — changing status from a limited company to a public limited company — is, for many organisations, a measure of business success, especially for startups and SMEs.

Taking a company public does not look only at the profit-and-loss statement, but at the whole structure of the business, the transparency of its financial accounting, and its internal systems.

So an ERP system plays a key role in taking a business public, as follows:

Accurate and complete financial reporting
Internal control and auditing
Cash-flow management
Improving operational efficiency
The ability to respond to change
Risk management
Transparency and confidence

1. Accurate and complete financial reporting

An ERP makes financial management and reporting accurate and complete, which is essential for disclosing financial information to the stock exchange. The higher the quality of the ERP — certified by the Revenue Department — the more credible the finances become.

2. Internal control and auditing

An ERP has strict internal controls and records data effectively — for example, when data is keyed incorrectly and approved, certain accounting entries cannot be edited. It’s an advantage that an ERP makes it easier to audit and improve internal work processes.

3. Cash-flow management

An ERP helps manage the organisation’s cash flow efficiently, so the business can better plan and manage its working capital.

4. Improving operational efficiency

An ERP lets a business gather and analyse operational data across every department quickly and efficiently, so it can make data-backed decisions and improve operational efficiency immediately.

5. The ability to respond to change

An ERP gives a business flexibility to respond to changing social trends — for example, the government promoting e-Tax Invoices to reduce paper, or tax laws — which the ERP develops to keep up with efficiently.

6. Risk management

An ERP helps identify and assess various risks that may arise in the business, and plan risk management efficiently.

7. Transparency and confidence

Having an ERP that records and reports data accurately and transparently helps build confidence among investors and shareholders.

Taking a business public is a process that requires excellent data management and control, so an ERP plays a key role in making the business ready and able to comply fully with the stock exchange’s requirements.

How does an ERP system play a key role in taking a business public?