April 05, 2022
Many businesses struggle with keeping track of their finances in a way that allows for records to be easily accessible and analyzed to derive quality insights for good decision-making.
With enterprise resource planning software, you can keep track of data from different departments in an organization, like the finance, procurement, distribution, human resources, and project management departments, to integrate, standardize, and streamline business processes.
An organization can use enterprise resource planning software, traditionally on-premises or in the cloud, to oversee and maintain all aspects of a business.
The key feature of an ERP system is that its operations are from a single data source and help manage the operations of a business.
Although it was designed for the manufacturing industry, it is now being used in other sectors such as healthcare, education, government, and Fintech.
ERP software integrated into an organization becomes the primary basis for data sharing and storage.
Importance of Enterprise Resource Planning Systems
Access to data from all your departments makes decision-making faster and information gathering easier.
In addition, having one source of data means having a single source of truth, reducing the possibility of data duplication.
Because of the unique way an ERP system works, acting as a single database source, it provides transparency into all financial processes. Using the system, you can track information on payrolls, purchase orders, logistics, and other financial information.
How ERP Software Helps Organize Enterprise Financials
Managing your business profits in real-time is essential to knowing the actual financial health of your business. Relevant data about where your most and least profit comes from will help you make intelligent decisions that will propel the commercial growth of your company. Utilizing an ERP tool for profit tracking will provide a means of forecasting future profits, which is important to understand the best decisions to make at this time.
ERP systems are used for recording vast amounts of financial transactions and usually have customer relationship management (CRM) and inventory management modules included. As your financial data is in a single location, you can access information promptly and identify any irregularities or fraud in the files.
This account oversees the management of all the funds your company owes creditors and vendors and helps you control cash flow by integrating expenses and purchase data. With an ERP system, you can automate your accounts payable and ultimately avoid human errors. The system is also designed to process large numbers of transactions, making it a very effective and efficient way to get work done.
ERP software can be used to determine which crises your business is likely to face and how to prevent such crises. Furthermore, insights into how to manage such crises are derived if they occur. Every business has a level of risk, but securing your business from preventable loss is crucial. Risk management solutions also cover legal, security, and reputational risks.
Fixed asset management.
ERP systems can be used to manage tangible assets like manufacturing equipment, office equipment, and office resources like cars, and so on. Important financial values like depreciation values, tax, and compliance requirements will be taken into consideration. Keeping track of your assets'' depreciation values can be useful in predicting expenditure costs and budget allocations. It will also eliminate unnecessary tax payments on items that have little value.
Other financials you can manage using the ERP software include:
- Account receivable
- Multicurrency management
- Tax management
At Guide Technologies, we provide ERP services that are designed for the organization and management of all your enterprise financials. They include:
With enterprise resource planning, you will manage your finances more efficiently, eliminate unnecessary tax payments, balance your risk exposure, and grow your business.