Why Do You Need An ERP System For Finance And Accounting?

31.08.22 12:55 PM By Sham

ERP is the acronym for Enterprise Resource Planning. It is a business application that makes decision-making smart and quick. It also augments the management of all financial, administrative, and manufacturing processes in the value chain. Think of core business processes such as production, supply chain, order processing, customer relations, and financial activities, a good ERP solution can help you manage all these from a single software solution.

88% of organizations consider their ERP implementation helped them to succeed.

Selecthub

Businesses maintain that software solutions such as ERP and CRM play an instrumental part in helping them spur growth across all channels. When it comes to managing the finance and accounting areas of a business, prominent ERP solutions help organizations in monitoring global financial operations in real-time, predict outcomes, and make data-driven decisions to drive business growth. According to a study conducted by Supply Chain Digital in 2020, a staggering 93% of IT directors and finance managers were reported to be believing that ERP implementations were critical to their operations.

Businesses reduce operating costs using the functionalities of an ERP solution. They can further focus on reducing time and costs while subsequently meeting the requirements of their managers, employees, and customers. Successful implementation of an ERP solution increases the performance of all operational activities for a business organization.

After ERP implementation, 49% of companies said they improved all business processes.

Panorama Consulting

Here we find the absolute importance of using ERP for finance and accounting. In this article, we will discuss the benefits that business organizations can derive by choosing an intuitive ERP system for finance and accounting

Precise Forecasts of Payment Status

Struggling with late payments is one of the few things that can hit businesses hard. According to a report, SMEs lose approximately $7 billion in cash flow a year due to irregular payments. Businesses need to know when to expect payments, how to choose trustworthy partners for payments, and effectively assert part-payment status to ensure proper finance management. A good ERP for Finance can offer you all this information within seconds!

A competitive ERP system for finance will be able to provide a comprehensive payment analysis report featuring multi-tier deep-diving information grounded on the historical payment trends of your vendors. These solutions come complete with AI-embedded CRM modules that help you spot credit risks and highlight the optimal fund allocation trends and market behavior to diminish financial risks. Cloud-based ERP solutions for finance act as the best virtual financial advisor as their financial insights are based on data and there are no opinionated versions.

Swift Processing

Payment processing and procedures related to it are quite cumbersome. Many finance experts have found themselves confronted by this business impairment that occurs due to tedious finance-related tasks such as budget planning, payment follow-ups, cost-cutting strategies, etc.

An efficient ERP system for finance will streamline these processes through effective automation or recurring tasks. This way, when you have to fill out a payment form repeatedly every day in the same way, you can task your ERP solution to do it for you.

The same goes for sending out emails and reminders to relevant stakeholders. Tasks that are mechanical by nature but important at the same time can be easily automated through ERP for Finance and this way businesses not only save time but also reduce errors.

Data-Powered Business Insights

Business insights help you understand the ground realities in the market. They also give you intelligent forecasts based on data. Armed with this information, businesses can plan their budget and strategies for specific activities, events, and even geographies.

Business Insights are particularly beneficial If your business has an international presence. A facilitating ERP for Finance and Accounting will help you here by supporting multiple currencies, analyzing stock market trends, and industry turbulences. These will ensure that you conduct unhindered business and effectively monitor productivity by using customizable KPIs and charts. This way you can execute timely actions which will lead you to reap maximum profits.

Updated Regulatory Compliance

Again, with an international business, you have to comply with frequently changing laws and business regulations. It is no doubt a major deterrent to businesses operating across borders. If your business is spread across multiple geographical areas that have different governing powers, you will need to be on the ball about their rules and regulations.

An intelligent ERP solution will help you with all such compliance needs. It will take care of all regulations related to taxing, payments, invoicing, and reporting formats. Report versioning helps you avoid any sort of misunderstanding with the local authorities and further allows you to adapt to changing laws. There are also many customizable tools available in prominent ERP solutions that help you understand international and local laws and reduce business risks.

Revenue Boosting Recommendations

Thanks to the advancements in AI and Machine Learning, businesses can now benefit from predictive recommendations that can help them not only achieve their revenue targets but also surpass them. The best ERP for Finance will empower your business with proactive guidance to manage and invest your funds prudently. You can also stock up on relevant inventories for the season and invest in only the hot selling products to gain the maximum sales during an event. Although this functionality is not directly related to finance, it still helps you manage your funds appropriately and make the most out of your investments.

Profit Improving Statistics

Let the numbers do the talking. If you are interested in touching impressive revenue growth figures, you must be focused on ways you can increase your profits. A good ERP solution will place you in a commanding position to achieve this. It will empower you with all the tools required to promote your financial health and deliver insightful charts based on intelligent KPIs, and other metrics to feature a segmented report of your current standing. It will also be able to reveal the impacts of individual performances in your business organization along with the actions needed to achieve your projected profit targets.

Cross-Departmental Collaboration

ERP for accounting and finance is also great when it comes to attaining optimum cross-departmental collaboration. These collabs help you streamline business operations, strategic planning, employee scheduling, and cost management. All these functions are related to financial operations and help you run your organization like a well-oiled clockwork. ERP for Finance also offers you comprehensive dashboards that empower you with real-time monitoring capabilities. Through these, you get to view and manage pending orders, job status, warehouse allocation, inventory, and supply chain.

Ending Words

While ERP solutions are great at streamlining processes and enabling businesses to reach operational excellence, they cannot work optimally if they are not implemented properly. Regardless of which ERP solution you have chosen for your business needs, you need to ensure that you have hired the right company for the implementation process. Many ERP projects fail due to faulty implementation and a lot of time and money is wasted in these misadventures.

Erphub is a leading ERP implementation services firm that offers consulting, solution development, and administration services to ensure your business efficiency is at its optimum level. At Erphub, we provide access to informational tools, a variety of basic ERP software packages, and the option to choose a completely custom ERP solution for your business. For more information, contact us by email.

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