Financial accounting is needed for companywide control & integration of financial information that is essential to strategic decision making. It provides ability to centrally track financial accounting within an international framework of multiple companies, languages, currencies & charts of accounts.
Using ERP in financial management is a great way to maintain the control in a reliable & precise way. The inclusion of ERP for financial management enable in decision making, since it provides consistency & total security on the accounting information & automate daily business activities of your company. With the help of ERP system for financial management, in your business you are able to:
- Improve business performance
- Streamline financial procedures
- Certify financial reporting & adherence to comprehensive, controllable accounting
- Spend less time on data consolidation and more time on data analysis
- Gain strong fiscal control
Benefits of a finance tracking system-
- Total view- Gives an extensive view of the company’s performance from an income, expense, and profit standpoint. The management can view complete details related to their accounts and how they integrate with business analytics. More importantly, this total view of the company’s financials helps to improve financial control & manage risk.
- Transparency- With the ability to capture real-time insights into- what is happening in the business, financial officers will be able to see exactly- what is happening in the financial function or any other arm of the company.
- Agile Decision Making- A mobile ERP solution, can facilitate in quick decision making while on the move.
- Reports/Analysis- Drill down reports facility helps in micro management and easy overview of different categories of expenses. According to the MIT Center for Digital Business, companies that employ data-driven decision management are reported to have 4% higher productivity rates & 6% higher profits than those that don’t. A best fit ERP solution, can provide different types of reports and empower the employees to make relevant analysis.
- Formulation of strategies- Financial condition of a company provides inputs while formulating strategies for the different segments in a business. E.g. Strategies wrt the discount matrix, rebate & schemes are decided, based on financial stats.
- Creditors/customer records- Creditors & customers transactions often provides inputs to on the current & future course of action. Accounts payable for the creditors & accounts receivable for the customers helps in financial planning of the organization.
- Profitable Opportunities- Profitable opportunities signify that the firm must utilize its available resources most efficiently under the conditions of cut-throat competitive markets. Profitable opportunities shall be a vision. It will not result in short-term profits at the expense of long- term gains.
- Internal controls- Internal controls are set of rules and regulations framed at the inception stage of the organisation, and they are altered as per the requirement of the business. However, these rules and regulations are monitored at various intervals to accomplish the same, which have been consistently followed.
- Ease of use- Financial analysis, in itself can be complicated at the first look if done manually can lead to errors. These errors can often result in financial losses. An ERP provides accurate data, to ensure error free calculations.
- Cash Flow- Cash flow drives everything forward in any business. An ERP system helps the business to better manage inventory through setting stock levels. Automatic reordering & keeping up with trends can help the business make better decisions regarding manufacturing, thus keeping costs to a minimum. Using the ERP system effectively for marketing and sales also keeps efforts more targeted and focused to help increase revenue.
- Scalability- As your business expands in this fast data driven world, you need to scale up – quickly and efficiently. A flexible structuring of the chart of accounts at group and company level, real time simultaneous update of sub ledgers help as the organisation grows.
- Collaboration- The finance team acts as in-house consultants to other departments, within the organization. When all departments use a centralized IT system, it drops the barriers that formerly blocked the flow of information. In the case of a company with multiple offices or international divisions, this ability to access the same information from around the globe, saves time and improves efficiency. If finance requires, location/branch wise sales analysis for quantity & value to create a report for an upcoming board meeting, data can quickly be transmitted by the sales personnel in the format that the finance department requires.
- Chart of accounts/general ledger (GL) is essential both to financial accounting system and to strategic decision making. The GL supports, all the functions needed in a financial accounting system.
- Accounts payable/accounts receivable helps track the financial relationship with vendors who are providing input to the organization in the form of goods and services & financial connection with customers who consume the services/products of an organization can be managed.
- Multiple currency support with exchange gain/loss provides flexibility to deal with multiple currency with auto foreign exchange Gain/Loss. Bank Reconciliation assists the enterprise, in reconciling the real-time balances shown on the bank statement with the amount shown in the corresponding bank statement.
- Defining budgets and set specific controls for the expenses & its variance report. Easily manage financial data wrt to multiple companies/units. Easily track the Profit & Loss Income Statement which is, one of the major financial statements used by every business.
- Easy configuration of the balance sheet and P&L as per user defined formats.
- Track the Auto TDS deduction for all expenses & payments where ever TDS is applicable basis vendor.
An ERP, acts as a strong pillar to manage the financial operations of an organisation.
A robust ERP solution has the potential, to add many improvements to finance as well. However, it is important to note that a very basic solution might not have essential features to provide the added value, right out of the box. It is important considering the nature of your business, to narrow down on a modern, innovative & easy to use ERP Solution.
Features like the following-
EPPS ERP offers solutions to features like the above & much more that are quick and easy to deploy. Your business processes can run without interruptions, during deployment of the modules, across your organization. The flexibility of our innovative & easy to use solutions will meet your aggressive business demands and contribute to the pace of growth.