The ERP went live two years ago. Invoices come out of it and the accountant closes the month in it. Yet the owner still asks the godown for a stock count on WhatsApp, and the sales manager keeps his own sheet of who owes what. That gap between the system and the business is what an ERP audit looks for.
What is an ERP audit?
It is a structured check of whether your ERP still does the job it was bought for. It is not a financial audit and it does not need an outside firm. It asks three questions: are the figures right, do people actually use the system for their work, and is the data safe. You can run most of it yourself over a few working days with your accountant and one person from each department.
What are the signs that an ERP is not working?
- Stock in the system and stock on the shelf disagree, and nobody is surprised.
- Month-end closing still needs an Excel sheet to be correct.
- Staff say "the system can't do that" and keep a register or a WhatsApp group instead.
- Reports exist but the owner does not open them, because they do not answer his questions.
- Everyone logs in with the same user, or nobody knows who changed a price.
If two or more of these are true, the audit is worth doing now. Our guide on why ERP projects fail explains how most of these gaps start.
How do you run the audit, step by step?
Test the core figures
Pick ten items and count them physically. Pick ten customers and confirm their balances with them. Compare the system's monthly profit with what the accountant reports.
List the side systems
Ask each department which sheets, registers and WhatsApp groups they keep next to the ERP, and why. Each one is a process the system misses.
Walk one order end to end
Follow a real order from enquiry to cash received. Note every point where someone re-types data or leaves the system.
Check access and history
List users and their rights. Check that every change to prices, stock and payments shows who did it and when.
Restore a backup
Ask for yesterday's backup to be restored on a test machine. A backup that has never been restored is a hope, not a backup.
Rank and fix
Put each gap against the money or time it costs, and fix the top three first.
Which reports should you test?
| Report | How to test it | What a failure means |
|---|---|---|
| Stock on hand | Physical count of a sample | Receiving, issues or returns are not recorded |
| Receivables ageing | Confirm balances with customers | Payments or credit notes are posted late or wrongly |
| Profit by product or job | Recalculate one by hand | Costs are not being captured against sales |
| Cash and bank | Match to bank statement | Entries are made outside the system |
For stock problems, our inventory management guide shows where counts usually drift. For accounting gaps, see integrating ERP with your accounting software.
What about security and access?
Shared logins, a former employee who can still sign in and a cashier who can edit yesterday's sales are the three findings we see most. Check them against our guide to roles and permissions. Each user needs their own login, and every sensitive change needs a record of who made it.
Fix it, or replace it?
Most audits end in fixes: a missing screen, a report rebuilt around the owner's real question, training for one department, or tightened access. Replacement makes sense only when the core design cannot follow how you work, for example a system with no idea of branches or batches when your business depends on them. In our work on the Sea Keepers procurement ERP, changes were added module by module as the client found gaps in daily use, which is the normal life of a working system.
Can Operix audit an ERP we did not build?
Yes. We review how your team uses the current system, list the gaps in plain language and tell you which ones can be fixed where you are. If a custom module or a rebuild is the honest answer, our ERP software team will say so with reasons. Contact us to arrange a review.
Questions people ask
How often should an ERP be audited?
Once a year is a sensible habit, and again after any big change such as a new branch, a new product line or a change of accountant. Small checks, like stock samples and backup restores, can run every month.
Who should do an ERP audit?
The owner or a senior manager should lead it, with the accountant and one user from each department. An outside software team helps when you want an independent view or the fixes need development.
Does an ERP audit mean we need a new system?
Usually not. Most findings are fixed with training, a corrected setting, a new report or a small custom module. Replacement is the answer only when the system's core design does not fit the business.
What is the first thing to check?
Whether the figures are right. Count a sample of stock and confirm a few customer balances. If those are wrong, every report built on them is wrong too.
