No prizes for guessing that the success of any organization secretly lies in its efficient finance management, which sadly in most companies is handled either through spreadsheets or a stand alone finance software. A standalone finance software may be good as long as the purpose of the organization is solely bookkeeping. However, a business needs to fulfill other crucial operations too, like procurement, inventory, production, etc. Having a clear, holistic and a unified picture of all your processes along with your finance is crucial for informed decision making. Absence of this leads to problems produced by:
- Partial, untimely and inappropriate information sharing
- Delayed and stressful month closing
- Inability to apply quantity discounts and accurate taxes on the sales documents
- No clear visibility into cash movement, cash blockages, non-payments, etc.
- Waiting till month-end for crucial business information
This directly impacts your liquidity, resulting into continuous additional investment and thus debts.
An ERP System brings together all these processes and functions on a single platform, in an integrated manner and working in complete collaboration with each other. This significantly improves your reporting, decision-making process and ensures intelligence across the organization through its potpourri of capabilities that include:
Streamlined Operations
An ERP is a comprehensive solution to handle all aspects of financial management for small to large enterprises, multi-national entities as well as multi-legal divisions. It can streamline and automate all financial operations from Account Payables to Accounts Receivables, General Ledgers, Multi -Currency, Bank Reconciliation, Credit Management, and more.
In-built Chart of Accounts
Most ERPs provide you with Chart of Accounts templates applicable to your country & legislature, with an option for you to create your own set too. Automatic posting of the journal after every transaction relieves you from the additional steps of posting or batch entries.
Automatic Tax Calculations
User-friendly Tax-Engine addresses your known and complex tax requirements and is scalable to future tax modifications. You get complete support for budgeting your operating costs along with finance reports that let you analyze actual against planned while the notification alerts make sure you don’t exceed the defined limit.
Simplified Banking
ERP simplifies your banking by keeping a track of all your cash receipts and cheques, to deposits, advance payments, credit card payments and bank reconciliations. You can even define multiple profit centers and do an expense vs profitability analysis for them. This will help you in identifying which cost centers are in profit and why.
Accelerated Month-End Closing
You can accelerate month end closings by assigning tasks to individuals or by setting reminders to manage various aspects of the closing. Your most critical component- your working capital will always be monitored and up-to-date giving you a clear input into mission-essential business decisions.
Improved Vendor Relationship
By effectively managing your Accounts Payable, ERP helps you maintain a fuss-free relationship with your Vendors reminding you to pay on time, availing discounts, re-arranging priorities and resolving differences. At the same time, efficiently handled Account Receivables help you to collaborate with your customers closely and be more responsive to them.
Managing your Financials and Accountings through an finance ERP module can help you nurture and gain complete control of them. A sound financial planning is quintessential for all organizations to maintain the health of the business and sustain the growth graph. This requires a holistic view of company finances, monitoring of working capital and a firm grip on enterprise-wide costs. Through numerous reports , rendered by an ERP, you get a clear visibility into operations and expenditures, you can control your costs, cut overheads, monitor losses and thus boost revenues. Probably that’s what your organization requires!
