About the Author
An enterprise resource planning (ERP) solution consolidates all the elements of a traditional accounting software package from accounts payable and receivable to payroll. It also integrates the functions accounting relies on, such as purchase orders, expenses, and e-payments.
Data integration automates the real-time transfer of information between departments. Connecting your accounting department to the other functions of your business enables immediate insights into financials, easier budgeting, more detailed and accurate reporting, and tracking of tangible and intangible assets.
Here are just a few of the benefits an ERP solution with an accounting module can bring to your business:
An ERP system provides real-time data to manage production, accounts, and inventory. It enables stronger billing, payments, and revenue management with automated tracking capabilities. It improves customer payment schedules and credit management while tracking invoicing, cost analysis, budgeting, and profits.
By collecting and aggregating data inputs from various sources, including logistics, billing, and warehouse management, ERP accounting modules can deliver much more sophisticated reporting than standalone accounting software. For example, accountants can make accurate cash flow projections based on inventory management, order statuses, and the customer order pipeline.
Manual data input and importing/exporting functions create opportunities for errors, which can affect the quality of financial reports and analyses. An ERP system automates the real-time data flow across the system, eliminating the need for redundant data entry while ensuring accuracy. You’ll appreciate this all year round, but especially during tax season.
With real-time views into cost variances, accountants can see why variances are occurring in time to recommend more profitable decisions. If costs are less than forecast, you can set new standards for accurate projections.
You can create more profitable financial models and plans with a holistic view of the entire financial picture, including historical reports and current cost analyses. With an ERP solution, accountants have more powerful tools to arm executives with a better understanding of the company’s financials to make smarter decisions.
Ultimately, these benefits add to a more streamlined and simplified accounting process that should position your business for greater profits and growth.
Stay on top of industry trends and insights.
Subscribe to the Big Ideas for SMBs blog.
About the Author