As your business evolves, you need a reliable software solution to manage its every aspect in a streamlined manner. Talking about financial management, nowadays, businesses are inclined towards managing this organization with an ERP software. ERP encompasses multiple features to address comprehensive business functions and therefore, is used by small companies to large global organizations.
What is the role of ERP in financial management?
A full-fledged ERP offers an integrated set of tools that help you manage cash flow, support automatic tax calculations, track budget, allocate revenue and have a clear picture of the finance department.
In a survey done by SelectHub, it was found that approx. 92% of respondents stated that they would like to see some new accounting functions in their next ERP. It is quite an overwhelming number that surprises us.
Let us check out what are the financial management software functions that ERP addresses –
Whether it is about workflow management or generating predictable revenues, an ERP software supports payment processing, forecasting, bank transfers, and reconciliations – just to name a few of the functions. With a seamless integration of all these functions, powerful tools and analytics in an ERP, businesses can calculate resource utilization and day-to-day operation efficiency.
It is difficult to maintain the utmost accuracy with your financial records. Therefore, most of the businesses endeavor to hire a third party for auditing. ERP assists you with validating data and automating the reports to reduce costly audits. Financial management module in ERP ensure maintenance of internal audit control, save audit time and eliminate accounting irregularities.
3. Tracking profit
With recent technological advancements, tracking profit in an organization can be done with the click of a button. Shortened lead times, on-time deliveries, accurate stock level, consistent customer service – you can track everything on a single screen of an ERP. This is how easy it is for the management to track organizational profit, create reports, compare it and make accurate decision to meet future objectives of the business.
4. Tracking invoice
The automated invoicing system helps you share invoices, record sales, add billing or banking details and minimize time spent on administration and uploading purchase orders. ERP boasts automatic invoicing system, which reduces manual errors and data redundancy.
Managers can approve invoices and send automatic emails, manage receipts online, track time and automate payment reminders to streamline their daily tasks.
5. Keeping tabs on investment
Investment is one of the major pillars that helps the business grow and flourish in a long run. Whether it is about the bond, stock, fixed assets, capital budgeting or cash equivalent, ERP software allows decision makers to proceed in a positive way after analyzing every aspect of business and thereafter make a wise decision based on facts and figures.
6. Risk management
Business and risk go hand in hand. To ensure that risks are mitigated and controlled in order to avoid unfavorable situations, the business owner should properly devise the plans.
Financial management module in ERP gives you a bird’s eye view of the entire organization and thus, you can make accurate financial decisions based on the financial numbers and calculated ratios.
7. Cash, liquidity, and debt
Maintaining and optimizing businesses’ financial health is paramount. When you invest in an ERP software, it manages cash flow, liquidity, forecasting and thus, improves organizational efficiency by reconciling the bank accounts.
What are the benefits of finance module in ERP?
Enterprise resource planning software is much more than an accounting software. ERP covers a wide array of business operations (almost all). As we have read in this blog, ERP backs up the financial and accounting management department in an amazing way. Similarly, it benefits the entire organization by –
- Improving performance
- Streamlining the accounting process and enhancing fiscal control
- Improving the financial procedures and minimizing errors
- Promoting data analysis process instead of data consolidation
- Increasing operational efficiency
Enterprise Resource Planning software makes manufacturing business easy. With just a single software, managers and business owners can manage the workflow and interconnect the operations of every department. This helps them work in a streamlined manner and manage all the financial functions with ease – from anywhere and at any time; thanks to cloud technology.