Unlocking Financial Success: The Power of ERP Accounting Software in Streamlining Financial Management

Below, you will learn how ERP systems can streamline financial operations and assist in solving various aspects of financial management issues.

What Financial Problems Could Be Solved With ERP Solution?

Financial management is vitally important to any successful enterprise - be it an upstart startup, established enterprise, or local or international organization.

ERP accounting system and financial management are of immense significance in any successful business challenges, from meeting payroll demands to maintaining relationships with investors or partners.

Manual financial data entry takes too much time and may lead to mistakes; not complying with financial regulations indicates serious problems within its management; take necessary actions today! Technology can assist in organizing finances. ERP software offers an effective means of overseeing all areas of a business's operation - finance included! This article will present several financial challenges faced by businesses today. Explore how ERP software helps simplify financial management in organizations and contributes to their success.

What is ERP?

ERP can be defined as software designed to manage data for an entire company and integrate major business processes. Solutions may include, among other things:

• Accounting processes and financial management
• Human resources
• Asset management
• Manufacturers
• Supply chain management
• The back-office function

Finance APIs enable ERP software to integrate seamlessly with other modules such as CRM, warehouse/inventory management systems, and planning/manufacturing software, speeding communication speeds while decreasing data input requirements and streamlining entire business operations.

What Financial Problems Does ERP Solve for Your Business?

ERP is more effective at handling finances than other fintech applications due to its multi-module integration and the ability to perform different tasks from one centralized hub, making employees' lives simpler by eliminating digital fatigue without switching back and forth between applications.

According to recent surveys, nearly 89% of companies agree that ERP is an invaluable asset when managing finances and running accounting operations. ERP has proved to be an extremely efficient means for effectively meeting financial challenges. So many midsized businesses trust it to manage their funds is proof enough!

What Hot Issues Could ERP Address for Your Company? Find Out!

Problem 1: Inaccurate Financial Reporting

Finance teams spend 48% of their time creating and updating financial reports - almost half their time! Since finance departments spend so much of their day compiling data that could prove invaluable insights, their efforts on this task often leave little or no opportunity for valuable discoveries that could change the course of business operations.

Financial reports provide important insight into where a company falls short and misses opportunities, showing sales figures and expenses anticipated next quarter. Words also serve banks, tax authorities, investors, and others with valuable data to refer back to for analysis and decision-making purposes.

Reporting financial data requires an updated strategy that facilitates faster reporting processes, such as employing ERP technology.

• ERP's powerful financial module facilitates effective reporting, helping companies make sounder decisions while complying with regulations.
• ERP software automates financial reporting and offers a solution that quickly transforms data into meaningful insights.
• ERP reports can easily be tailored to fit the unique requirements of different government agencies with just a few mouse clicks.

Although most individuals consider themselves to have high standards for food preparation, many still experience difficulties while adhering to such an ideal. To combat such challenges more efficiently and to increase overall sustainability.

Problem 2: Manual Data Entry Errors

Human errors are inevitable during data entry. Everyone makes mistakes occasionally, yet Ray R. Panko's research uncovered startling findings; when manually entering data in simple spreadsheets using manual input methods such as keyboarding or mouse navigation, 18-40% make an error each time; complex spreadsheets increase this likelihood even further.

Misplaced decimals could prove costly for any organization. They can cost significant sums of time and money to correct them while damaging reputations as decision-makers may make incorrect judgments from inaccurate data.

Businesses utilize ERP solutions for finance to enhance data quality.

• An optimally programmed program should generate correct and consistent data and avoid causing other mistakes.
• This program runs without strain or fatigue and performs all calculations or formats files automatically without leaving room for mistakes or mistakes to creep in.

Problem 3: Lack of Visibility Into Financial Performance

Businesses today must make decisions quickly. However, making strategic choices without an accurate view of finances is like fighting windmills; paper spreadsheets and unorganized financial documents impede effective decision-making processes that could rapidly seize new opportunities with lower risks than before.

Top managers cannot set budgets or allocate financial resources towards specific goals such as employee training, salaries and benefits, asset maintenance, or marketing campaigns.

• ERP accounting software centralizes all critical information into one convenient location for everyone to quickly access it.
• This helps organizations understand their financial state at a level where operational decisions are made.
• ERPs often include an advanced forecasting module to account for historical data and variables to anticipate how decisions will turn out accurately.

Problem 4: Inefficient Financial Processes

You may still be entering financial information manually. Or worse, perhaps scribbling everything out on paper! You might be shocked to learn how much this cost you - here are some figures which should set the record straight:

SMBs allocate approximately 25% (31%!) of their workday (31%) towards manual financial administration tasks.

Studies show that 7 out of 10 finance departments (roughly 70%) devote up to 520 administrative personnel hours (AP hours) annually to tasks that could be automated via FinTech software, such as invoice and payment processing, PO matching, supplier registration, and new supplier registration.

ERP can automate many financial processes.

• Financial technology simplifies invoice generation and approvals while performing bank reconciliations and other tasks for bank teams without needing to handle them themselves manually.
• Cash management, financial statements, and cash flow analysis have also been more straightforward.
• ERPs make storing and collating information from various departments easy, eliminating redundant records while offering rapid access to vital details.

Problem 5: Complying With Financial Regulations

Many businesses need help complying with financial regulations. Adherence can cost organizations billions; on average, companies lose $5.87 Million per noncompliance incident alone! And that is only the start.

These events can cause irreparable harm to an organization's bottom line as they impact productivity, disrupt business activities, incur penalties or fines, and cause irreparable reputational damage - estimated costs associated with noncompliance are approximately 14 Million. ERP can assist your company if its finances must be prepared to handle unexpected expenditures.

• With this ERP, your staff can ensure your company abides by all industry-related rules and regulations.
• Your company should have access to tracking the numbers that make up its payroll to prevent the IRS from scrutinizing for discrepancies in accounting practices.

Problem 6: Limited Access To Financial Data

Limited data access may result from legal reasons or roles-specific constraints within an organization; however, in most instances, employees need to know which repository to utilize for storing their information. They need an organized directory to find it easily. Collaboration among departments may become compromised; decision-makers at all levels may make business-critical choices without all relevant facts available; companies using paper documentation make it more challenging for remote employees to access critical information when working from home or offsite.

Your ERP system should enable all employees to harness the potential of data, regardless of device or location.

• ERP software gives companies access to data quickly, making it available and easily accessible by employees within seconds.
• ERP allows instant access from anywhere globally, as all information is digitally stored in standard formats.
• ERP can process large volumes of information quickly, giving instant access to what information is important to you.

The Best ERP Fintech Solution Tailored to Your Business Need

ERPs offer numerous advantages for financials. Enterprise resource planning systems have many benefits when managing finances. Still, not all ERP solutions provide equal functionality or flexibility - customized ERP development may provide the answer!

ArionERP offers services designed to bring more clarity and accuracy into payment processing, automate financial management, and improve data accessibility and compliance. From consulting on the optimal solution for your business efficiency to developing ERP and managing it effectively - ArionERP can assist.

What is ERP Finance?

ERPs integrate everyday business processes and serve to transfer data among them seamlessly - finance is at the center of each one, so an ERP's finance module supplies all the relevant data necessary for them to do their work efficiently. Your ERP program would only function effectively with financial data. How else could advanced processes such as automatic reordering function when there's no indication of available funds to purchase materials? ERP systems allow all departments within your business functionalities to integrate seamlessly, helping you make informed decisions and boost productivity. ERP finance modules are software programs that gather financial data to produce reports that allow midsize businesses to more effectively communicate with external partners - like vendors and customers - through various functions, like general ledgers, accounts payable/receivables management, budgeting tools, etc.

What is Accounting Software?

Accounting software differs significantly from financial software in several aspects. Finance ERP (Enterprise Resource Planning) software emphasizes future planning and budgeting while accounting ERP software concentrates more heavily on past data like general ledger balance, reports, expenses management, and tax administration - features also found within finance modules to ease bookkeeping tasks.

Discover the basic features of ERP software used for financial management.

Related:- Why Accounting & Inventory Tracking Important for Cannabis Companies

Key Features to Remember About

• Profit Tracking

Profit tracking is one of the core functions of ERP modules. It will give you an overall view of your company's overall health and finances. Profit Tracking enables you to monitor profit to see where more money is coming in or track the ROI of purchases you made. Profit Tracker calculates your organization's profits using costs as inputs; some programs even forecast future profits using historical sales and expense data as forecasting input. ERP software designed specifically for financial management can assist companies with tracking company costs by following individual cost centers and overseeing procurement processes from the top down. Financial management software provides tools designed to increase profits within any business development environment. Leaders know how to utilize it fully for maximum performance of their environment.

• Ledger Management

ERP systems are built upon ledger management at their core. A general ledger provides an exhaustive record of financial transactions. This module connects seamlessly to other modules like Inventory and customer relationship management systems. Entries can be entered anywhere within the program, and all your records will be accessible at once, making tracking assets, liabilities, and capital accounts much simpler than before. An Excel general ledger example. Consolidating all your financial information can simplify tax filing and help keep spending under control; plus, some ERP systems provide alerts against unusual transactions or possible instances of fraud. Financial reporting offers outstanding transparency into your department's activities while giving an overall picture. A general Ledger serves as the foundation of financial statements, which provide essential insight into its evaluation.

• Accounts Payable

Accounts payable is designed to help core business processes manage the money owed to suppliers and creditors for goods purchased, services rendered, or debt incurred in business software dealings. Integrating expense data directly into purchase systems enables control over cash flow management.

Automating accounts payable can save your business both time and money on labor hours and eliminate human error. Automating invoice processing helps eliminate human errors in handling large invoice volumes from its vendors. At the same time, document capture (also called imaging) allows users to convert paper invoices or documents into digital files for processing by your business. Tracking accounts payable allows you to know exactly how much money is due from you and when. That way, you will get all the payments! Sounds nice?

• Accounts Receivable

Your business can manage customers' owe you by using accounts receivable software to track payments made to it from customers and manage cash/invoice management as well as track any uncollected monies owed them from various customers.

ERP systems offer your clients a secure portal where they can make payments and access invoices, with automated tasks created, such as reminders for payments or statements of accounts and the generation of recurring invoices. AR automation speeds up collection processes while strengthening customer relations - easier transactions are key for creating satisfied clients!

• Fixed Asset Management

An asset management solution will track and oversee your tangible assets such as computers, office furniture, cars, and manufacturing equipment - considering depreciation, tax implications, and compliance considerations.

Asset management gives your company better insight into costs, maintenance needs, and utilization. Tracking depreciation helps create budgets while planning for maintenance costs will enable more accurate forecasting of expenses and spending estimates. Additionally, having this visibility allows your organization to see where necessary repairs must occur sooner rather than later.

Tracking assets you've replaced or eliminated can help you avoid paying taxes when replacing or discarding them, an oversight that might happen without even realizing it when maintaining records. Furthermore, tracking can identify savings opportunities, such as some jurisdictions' sales tax exemptions for specific industries.

• Risk Management

Core business operation leaders recognize the heightened danger of running their organizations; risk management tools help predict, mitigate, and analyze crises to keep organizations safe.

Risk management covers everything, including dealing with natural calamities and financial problems. Furthermore, risk management can also be used to address potential security threats, legal liabilities, compliance obligations, or reputational risks in any organization.

Here is an introduction to an effective risk management tool

Staying compliant can be challenging in this constantly shifting regulatory environment, which makes risk management tools invaluable in staying on top of compliance issues and regulations. These tools will alert you of contamination in a food and beverage manufacturing setting and track all money coming in and going out. They allow your company to maintain adequate cash reserves should one or more clients fail to pay, managing credit risk.

• Reporting

Analytics provide real-time financial data essential for effectively overseeing finances. Having visibility allows you to make predictions based on accurate forecasts and make data-driven decisions regarding the health of your business's financial position.

Dashboard of SAP Cloud Analytics

Reporting and analytics provide basic information on where your revenue comes from; however, your dashboard offers much more. It can display sales figures, projected sales forecasts, expenditures, and various financial elements; you can even select specific categories you would like shown for quicker analysis of company finances. Real-time graphs make assessment quick.

• Multi-Currency Management

Effectively handling different currencies is vital if your clients hail from across the world. Multi-currency makes buying and selling foreign currency much simpler, while currency conversion allows transactions in various forms of money.

• Tax Management

The latest tax management solutions offer features like auditing and reporting to ensure uniform sales tax collections.

Tax management tools make the complicated task of identifying which jurisdictions are responsible for sales taxes at ship-to locations easier, or can use pre-built intelligence to verify transactions compiled with regulations - depending on which ERP system and business automation tool you select; their capabilities can help save both time and effort in your operations. Tax management provides one more great opportunity to save valuable hours!

As Previously Discussed,

Without its finance module, an ERP system is unable to operate. Below are the most essential and standard features, but advanced functionality may also be added based on individual preferences and needs. When choosing financial ERP software, it is key to determine your requirements first before looking for matching options that could suit your system's features.

Download our ERP features template to assist with identifying which features will best meet the needs of your business, then request access to our research and reports for even greater insight. Organizational resource planning software (ERP) has become indispensable in modern business environments. ERPs feature functionalities designed to manage inventory, quality, productivity, and business performance - essential functions that any successful enterprise should rely upon for effective operations management. Below are five benefits of using an ERP to conduct accounting and financial management processes.

5 Key Benefits of ERP for Accounting and Financial Management

What are the benefits of ERP for departments in charge of finance and accounting?

Here are five benefits that ERP can bring to accounting and financial management.

• Finance and accounting ERP Allows For Greater Control of Finances Through Business Integration

ERP provides greater financial control through integration within business operations. Every organization requires a finance and accounting department. At the same time, their methods may vary. Still, their objectives remain similar, and every financial manager strives for similar goals when managing finances.

• Profit margins can be improved
• minimizing expenses
• Promoting savings
• Safety and optimizing investments
• Increasing the value of a company

Financial teams perform numerous organizational duties, from estimating capital needs and disposing of excess assets to overseeing cash management and performing financial control. ERP allows financial teams to centralize data for easy monitoring. Integrating cost accounting systems into ERP allows managers to accurately define and budget for costs related to raw materials, labor, transport, and overhead expenses.

An ERP system can assist finance departments in improving their activities, from payment of suppliers, payroll payments, and forecasting financial results to managing multiple departments simultaneously with just one method (thus cutting costs while increasing productivity). When used to oversee various aspects of a department simultaneously, such as an ERP solution does.

• Better Tracking and Management of Finances With Accounting and Financial ERP

ERP financial ERPs manage customer payments, revenue tracking, and credit administration throughout your company - they even include CRM software so as to prevent customer complaints and automate customer reminders!

Manage revenue, billing, and payments easily using automated payment systems with increased tracking capabilities. Finance ERP solutions can assist in budgeting, cost analysis, tracking invoices, and tracking profits/losses from investments, as well as more advanced tracking.

• Secure Financial Data And Real-Time Visibility

You can boost your bottom line by organizing processes and resources effectively. Finance ERP gives you quick and easy access to detailed data to determine what would work best for your business requirements.

Your financial data is personal and cannot be made publicly accessible, making the ERP finance module an effective way of protecting it while permitting others access as you request and need. With multiple modules and reporting features, you no longer need spreadsheets or paper files to be maintained; your ERP finance module keeps everything safe!

• Integrated and Automated Data Across the Organization, Even in Multiple Countries

ERP software offers immediate data synchronization, improved quality, and real-time visibility within your organization at the click of a mouse.

An ERP system makes it simple to produce information, consolidate it, and control company-wide processes. Accounting data is tracked using shared management tools, integrated financial modules, and international standards - you can select any chart of accounts, language option, monetary unit option, or company structure as part of this solution.

ERP systems enable businesses to collect financial transaction information across departments and generate reports like general ledgers for analysis. ERP plays an invaluable role in modern businesses as it streamlines all data.

• Greater Financial Control With Gaap-Compliant ERP

While accounting software is not GAAP compliant, an ERP system generally is. The US Securities and Exchange Commission adopted GAAP as an accounting standard that establishes an orderly method of recording events and transactions.

An ERP system that can drive financial reporting effectively encourages productive reporting that conforms with many accounting standards, including GAA.

Want More Information About Our Services? Talk to Our Consultants!

Conclusion:

Systems designed specifically to support financial and accounting management can bring many advantages. Finance managers can better oversee accounting needs within an organization. In contrast, accounting software may only offer limited functionality compared to an ERP solution, which integrates modules for finance, production and quality, sales purchasing, etc - manufacturing management systems include all these capabilities plus specific functionality tailored specifically for manufacturing industries.