What are the key benefits of ERP for Accounting and Financial Management?

By Pranjali Manore



Enterprise Resource Planning software has become an unavoidable part of modern business. It presents a world full of business functionalities designed to address inventory requirements, manage production functions, quality of finished products, and oversee crucial business processes. 

 

The advantages of ERP systems are many, but how does it benefit the accounting and financial management department in an organization?

 

Let's have a look.....

 

  1. Integrate, and operate all your financial and accounting requirements with ERP:

 

The Accounting and Finance department in every business is necessary. The way they work can be different and unique, but the objective is almost the same in every case. Every financial manager aims at:

 

  • Improving the wealth. Profit margin
  • Minimizing expenses promoting savings 
  • Make sure about the safety of investments and optimum fund acquisitions
  • Increasing the value of the firm

 

There are multiple things to manage. There are many activities to look after, from forecasting capital requirements to disposal of surplus to cash and financial control management. ERP lets unify the data and bring it all together in one place. 

 

An upgraded ERP system improves cost accounting and allows managers to precisely define the budget and assign costs (for raw material, labor, transportation, and other overhead costs). 

 

2.      Handle billing payment and revenue on time with ERP:

 

Enterprise Resource Planning acts as a financial management system to ensure customer payment schedules, credit management across the business, and revenue tracking. ERP Software integrates a CRM (Customer Relationship Management) system to convert reminders and avert customer complaints. 

 

With tracking and easy to use automated payment systems, billing payments and revenue management become easy. It can help manage cost analysis, invoice tracking, profit tracking, budgeting, investments, and more.  

 

3.      Access to quality data and financial information:

 

Obtain data whenever you need it. When procedures are systematic and resources are optimally utilized, future business ventures are promoted, and the bottom line is improved. ERP software permits businesses to maintain financial measures by having in-detail information whenever needed. 

 

Financial information is confidential and can't be disclosed openly. Enterprise Resource Planning provides you the opportunity of safeguarding your data and co-author, manage and edit it as per the access you allow. The best part is that multiple reporting options and modules eliminate the need for maintaining spreadsheets and paper files. 

 

4.      Integrated + automated data across the organization:

 

Obtain real-time data synchronization, better data quality, and an updated view of the company at the push of a button with ERP. Creating information, consolidating it, and managing the company-wide business process becomes hassle-free with an ERP system. This means you can select a framework in multiple currencies—languages, companies, and charts of account. 

 

Conclusion:

 

So far, you must have come to know that the benefits of using an ERP system for accounting and financial management are empirical. A finance manager can forecast capital requirements and manage the organization's overall accounting activities mindfully.

 

The majority of business owners depend on accounting software. Still, they do not understand that ERP systems are an all-in-one solution that encompasses modules for every department, including finance, quality sales, production, procurement, etc. 

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