In the modern corporate world, the majority of the business firms are using separate systems for accounting and financial management, and Enterprise Resource Planning (ERP). However, a company must not have all the modules of ERP, depending on its size and type. Because, with ERP, it is more common to only implement the required module to serve the primary purpose. Companies nowadays are also using a blend of accounting books and financial management apps along with ERP for operation management. But, what they don’t know is that you don’t need any other app if you have ERP in place. Using ERP for accounting and financial management offers a lot of benefits.

In this content, we will be discussing the top 5 of using an ERP solution to meet your accounting and financial management needs.

What is the Value of Integrating ERP to your Business For Accounting & Financial Management?

We all know about the countless benefits that a business gets by implementing ERP. And using it for accounting and financial management is also not an exception. At the root level, almost all of these benefits relate to the primary factor i.e. Integration. Effective accounting and financial management systems require data input from varied sources. These data sources may include warehouse or inventory records, manufacturing records, billing, HR, logistics, sales, and so forth. Having an accounting and financial management system based on ERP automatically integrates data from multiple sources.

Top 5 Benefits of ERP Based Accounting & Financial Management System

1. Enhanced Business Process Automation

Business process automation intends to boost productivity. When you have your ERP and Accounting functions linked together, it becomes easier for you to automate a workflow that overlaps both the systems. When using ERP for accounting, you can completely automate many financial and accounting tasks. For example, you can streamline your account payable, accounts receivables, and cash management operations easily. Process automation also helps you in the quick tracking of financial transactions.

2. Data Enriched Financial Reports

Individually, the accounting software packages provide basic financial reports like balance sheets and income statements, etc. But, if you are using an ERP-based accounting system offers you to have a wide variety of reports. For instance, you can create cash flows by using inventory records, sales, cost of goods sold, records, order status, account receivables, pipeline orders, etc. This provides you with a very comprehensive view of the company’s financial data and its overall financial health. Effective reporting, as a result, allows you to manage your finances efficiently.

3. No Hassles of Data Duplication

When you are using two separate systems, you need to input data manually into each of them. This increases the chance of typing or human error. However, when your ERP and accounting systems are integrated, it not only overcome the tedious process of manual data entry but also eliminates the chances of error and duplication. In other words, using ERP software for financial and accounting management makes the data entry process consistent and fast.

4. Error-Free Data Input

When you are entering your data manually, it is highly prone to errors. These errors usually include incorrect clients’ names and swapped digits etc. It might sound unimportant, but these mistakes in calculations can unwind with time and can cause serious problems. With ERP, you can also see who did what and when related to every transaction. This functionality is crucial for effective tracking and monitoring because you can find out who made the mistake.

5. Improved Degree of Control

Using ERP software for accounting and financial management gives you more control over your business. With ERP, you can see the overall impact of the decisions and event and their outcomes in real-time.

Accounting & Financial Management with ERP Services

ERP is a one-time investment, but it is certainly a huge one, so you cannot just rely on any IT company to get the task done for you. Your ERP technological partner must be reliable, highly-skilled, professional, and experienced.