When you hear the term “ERP (Enterprise Resource Planning) systems,” inventory, order management and manufacturing may come to mind. However, you should know that ERP systems are equally valuable in accounting and financial management.
While an ERP system can help you improve productivity and effectiveness, it can also offer tools to improve and simplify your company’s finances.
Here is how an ERP system can improve your accounting and financial management:
Improve accuracy and reduce costs, by implementing a fully-integrated system
A great benefit of an ERP system is that it’s fully integrated which allows companies to run their entire operation, including their accounting and finance sections, from within a single system.
Therefore, you can reduce costs by eliminating the need for spending money on maintaining and upgrading different systems. It can also save you a significant amount of time because you and your team will no longer have to manually cross-reference and re-enter the same data into multiple spreadsheets and systems.
Another great aspect of a fully-integrated ERP system, such as Naologic, is that it lets you choose various business apps which altogether will comprise your ERP-platform. This way you have the possibility to create a system that is entirely tailored to your company’s needs. Without an integrated system you don’t have the chance to create, for example, the best integrated accounting system for your team and your internal business processes.
Better asset management
Poor management of a company’s assets can cost a lot of money. That’s why businesses need an ERP system.
ERP systems provide companies the ability to get better visibility when it comes to asset management. Companies have different types of assets, such as electronic equipment, office furnishings, machinery, etc. When companies are considering purchase value, quantity, and other relevant information, customized tracking and reporting are valuable.
With an ERP system, businesses can achieve better asset accountability and lower risk of loss because they now have more efficient inventorying methods, thus eliminating hidden costs and inefficiencies.
Better visibility and more control of assets help companies prevent wasting funds on unnecessary capital expenditures for resources that they already own and can be reallocated.
An ERP system offers a powerful financial reporting solution that helps companies in many ways. It provides access to many meaningful and comprehensive financial reports that give companies the transparency needed to make essential business and financial decisions.
The ERP system offers instant visibility into data such as accounting, sales, budgeting, billing, financial reporting, and order management. All this data gives companies an idea of where they stand so that they can make better decisions. They can also use this data as a competitive advantage.
With the right ERP solution, companies can ensure that they’re achieving the highest efficiency and accountability which in turn, gives a maximum return of investment.
To any company, cash flow drives everything forward. An automated system can get you cash faster to support the expenses that you need to pay.
The ERP system allows you to automate cash payments and receipts, so you no longer need paper invoices and checks. It also helps you track collections, keeping tabs on account receivables and enabling you to be more proactive with slow payers.
By using the consolidated data provided by an ERP system, you can monitor your cash flow and make smarter decisions across all levels of your company.
Companies with automated systems are more productive and able to grow as they have the flexibility to focus on their core operations.
By having ERP and accounting linked, it’s way easier to automate workflows that cross the two systems. If companies are using an ERP system for accounting and financial needs, they can fully automate accounting and financial tasks.
An ERP system simplifies operations related to accounts receivable and accounts payable, and improves cash flow issues and cash management.
In other words, companies can see the who, what, when, and where of every financial transaction, which is really helpful for the big picture analysis of their financial status.
As you can see, with an integrated ERP system, you can automate and streamline your accounting and financial processes. The ERP system allows better and instant visibility into data for accounting, financial reporting, and budgeting, which ultimately helps you make better business decisions.
With an ERP system like Naologic, you will be able to improve not only the efficiency of your accounting and financial management, but your business as a whole!