Revolutionizing Accounting: The Impact of ERP Solutions on Financial Management




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It's 2021, and DOS has come to an end. Tally's accounting solution is a major player in the Indian market. Cloud-based accounting has made accounting a lot more accessible.

Accounting module ERP solutions provide a seamless and intuitive user experience with a striking design that's super easy to use.

Any business can benefit from the right accounting software. Manufacturers are not an exception.

We discussed how manufacturers might boost productivity, automate tedious activities, and guarantee compliance with modern accounting systems.

Wait, isn't it more sensible to invest in an ERP system that already includes an accounting module rather than standalone accounting software? What strategy should manufacturers choose for their production processes?

ERP Accounting Module

ERP The Accounting module is an application that gathers data and creates reports about accounting operations, cash flows, payables, etc. It gives your company the tools it needs to manage financial accounting problems.

Automation can dramatically improve the efficiency of your company's operations. Particularly accounting tasks that require high accuracy. Your ERP can help you achieve this. You have access to real-time information from anywhere. Your database will be updated instantly if there are any changes.

The ERP Accounting Module is perfect for handling the finances of your business. It can also be integrated with other units or modules. You will have complete transparency and no errors in calculations. It will allow you to view your company's income and expenses. The management team uses this information to plan and better your financial judgment and financial management.

All ERP Accounting Modules Share The Same Features

  • Client database: This is where all customer information can be found. Your employees can access client data, such as financial reports, financial statements, balance sheets, and credentials. This allows you to offer better customer service.
  • Accounting system: It frees employees from tons and tons of paperwork. Your employees can access all your documents online as reports and sheets.
  • Asset management: This tool can help you manage your assets. This tool allows you to monitor assets throughout their entire life cycle.
  • Financial analytics: You can monitor your payables and receivables. The dashboard can be accessed in real-time. The UI is easy to use and understand.
  • Forecasting: Based on reports and your company's current situation, the accounting module can provide precise forecasts.
  • Integration with different systems: Finance modules should be able to exchange data with other applications or modules.

You should know what to expect when purchasing an ERP finance module. You will also find its subsystems and functions in this module, which we will discuss below.

Read More:- Why its Time to Switch from Manual to ERP Accounting Software

General Ledger

It is the heart and soul of the finance module. You have complete control over data and how it integrates with other departments within your company. It is the central place for all accounting information that you need to make better decisions. Here you will find all the financial information. A Chart of Accounts can also be set up by your company.

Receivables

This subsystem manages financial transactions with customers who use your enterprise's outputs. It gathers financial records and carries out duties like monitoring bills for unpaid customers. You can also use this function to classify your accounts. This function gives you credit in real-time management. You will receive detailed reports and statements from clients who owe you money. You will be reminded about unpaid invoices by this system.

Account Payables

This subsystem manages your company's input in the form of products and services. This subsystem allows your company to promptly register, track, and approve bills. It is easy to use the form to approve invoices. When necessary, invoices can be automatically generated. It can match receipts and invoices automatically.

Asset Management

The management of fixed assets is one of the most crucial financial tasks. This section maintains the assets ledger, which provides information about asset transactions. Asset management tracks your assets throughout their entire life cycle. It manages the purchase, sale, and depreciation of fixed assets and revaluation.

Cash Management

All data regarding cash flow in your company can be found here. It analyzes and processes all bank transactions and money due to invoice payments. The cash management subsystem analyzes all financial transactions for a specified period and provides information on income sources and funds used to control liquidity. This information is crucial for your company's ability to pay its obligations.

The ERP Accounting Module has Many Benefits.

  • By cutting out wasteful spending, you can lower your firm's costs.
  • Users can add and remove features from the accounting module. You will receive an ERP that is customized for your company.
  • This accounting module lets you have comprehensive control over your business's money, guaranteeing productivity and client pleasure.
  • Accounting operations can be managed from anywhere.
  • The many departments in your firm can collaborate with the executive team to ensure better decision-making in the financial department.

The finance department is a key section of any business. This department is crucial to your company's success in today's competitive world. It is best to use an ERP system to manage it.

Which ERP module Or Standalone Accounting Solution Is Best For Manufacturers?

Many manufacturers used simple spreadsheets to manage their accounting when they first started. Spreadsheets are no longer able to meet the demands of growing businesses. Manufacturers will naturally want to use a more advanced system. What should you choose: a standalone (best-of-breed) accounting system or an ERP?

The benefits

Accounting software allows manufacturers to simplify, standardize, and automate routine tasks such as journal entries, management, reporting, creating transactions, reviewing, and approving.

Accounting departments can also eliminate manual processes to produce accurate financial results and make timely payments. They are also more compliant with international laws as well as regional laws.

To streamline accounting procedures and eliminate data silos, modern accounting systems frequently contain multilingual, multicurrency, integrated business intelligence capabilities or the capability to combine these products with other technologies and produce more precise reports. This allows for more strategic decisions to be made.

However, ERP systems can have many benefits beyond accounting. This integrated software allows manufacturers to have complete visibility into the operations of their business from a single platform. Manufacturers can gain instant insight into key areas in accounting and marketing, sales, and human resources.

ERP's industry-specific functions are a major advantage. They allow distributors and manufacturers to optimize inventory, lower costs, manage production planning, supply chain, and shipments, and seamlessly plan and execute production planning.

The degree of fitness

ERP is an all-in-one solution that can cover many aspects of the organization. As a result, producers won't require different systems for each division. An obvious advantage of an integrated ERP solution is that all company data can be stored on a single platform. This significantly reduces silos.

Accounting software is, however, specifically designed to meet all financial needs of a company or industry.

Customization is another important factor to consider if the manufacturing company has specific requirements. Because of the complexity of ERP software, customizing ERP software can be costly and time-consuming. However, this does not necessarily mean customizing accounting software takes fewer resources. However, because the ERP accounting solution's scale is smaller, the implementation will require less effort, time, and money.

The implementation times

The time it takes to implement an ERP solution can also be longer than accounting software. An ERP implementation project can take between 6 and 12 months for a medium-sized manufacturing company.

Because the system is used by a smaller number of users, it will make the process of planning, implementing, and training much easier. The system's features do not impact other departments or the larger business environment.

Software trends: The "cloud movement" is gaining more traction.

ERP software is highly competitive. Allied Market Research conducted an ERP Software Market Outlook in 2019. It found that the market for ERP software is expected to grow at a CAGR of 10.2% between 2019 and 2026.

ERP software is still used most by the industry with the biggest market share, manufacturing. However, several new competitors have recently entered the market, including those from the pharmaceutical, automobile, and consumer electronics sectors.

These new industries have increased their penetration and, along with other factors, made traditional ERP solutions less attractive. This has led to cloud-enabled ERP software being more flexible.

Many manufacturers use cloud ERP in addition to various other advanced technologies. IoT and AI are the most popular and sought-after. They are thought to increase on-time operations and minimize human intervention.

ERP isn't the only software that has received all the attention. Software for accounting also saw major changes to meet changing business requirements.

Research shows that automation will be a major driver of growth in software companies and have the greatest impact on multiple industries; according to the 2019 Sage Practice of Now survey, 58% of accountants believe AI has the potential to increase productivity and aid in decision-making.

Accounting professionals will abandon spreadsheets in favor of more technologically advanced financial and accounting solutions. Accounting software was predicted to grow at an 8.5% CAGR between 2019 and 2024, according to Finances Online. The Asia Pacific area will take the lead in implementing the new accounting software, closely followed by North America.

The percentages mentioned in Finances about businesses utilizing cloud-based software online are worth noting. Small and medium-sized firms are widely anticipated to dominate the cloud accounting software market. But reconsider! Did you know that they have been adopted by 58% of large businesses? All businesses can benefit from cloud solutions regardless of size or industry.

Often, ERP and accounting software are interchangeably used. This is wrong as they are two completely different systems, each with its purpose.

Each software has its pros and cons for manufacturers. The best solution depends on the needs of the company. Manufacturers should not rely on manually compiling spreadsheet after spreadsheet after spreadsheet. It will lead to silos, and make In today's competitive market, firms cannot compete.

Latest And Most Innovative Features In Accounting ERP

These are some of the most useful features of accounting ERP software that aren't available in traditional software.

Cloud-based-Access is available 24x7 from any location, even while you're in transit.

Mobile responsive-It also includes a mobile-responsive design, which can be accessed from any Macbook, laptop, tablet, PC, or mobile device.

Integrated CRM-Accounting module included ERP software solutions. With the GPS-ensured Mobile App, you can keep track of sales reps, send them quotations and maintain follow-ups.

Sales executive module-For analyzing the transactions of any broker, agent, or sales executive, original reports and graphs are available.

Business insights, dashboards, and analytics-You can create dynamic graphs and reports to analyze your data using different criteria.

Man management-Monitor the cost of each job, client profitability, and employee performance.

Linking to a Proforma Invoice or Delivery ChallanInvoice Delivery Challans directly or Proforma Invoice. Monitor unbilled Challans.

Incorporated Help Desk for After AMC and After Sales Support -Dashboard to track complaints, monitor support team, allot tickets and obtain customer feedback.

MIS alerts-Get SMS or Email alerts about daily sales, collection, stock below the reorder level, etc.

Email/SMS integration-Automated SMS/Email alerts sent for transactions and events.

Integration with payment gateway-Accept credit/debit cards, net banking, and other payment methods and create receipts.

Multi-company/Department/Branch-You can view centralized data from multiple ventures, departments, or branches.

Multi-location access-Multiple users can simultaneously access and update data from different locations simultaneously.

Multi Window operation: You can simultaneously use multiple vouchers without having to close a transaction.

Screens and reports-Reports and screens allow you to add or remove columns easily.

Document Management-Attach JPG/PDF to each voucher and print/view using a quick search.

Role-based security with audit trail-Allow users to have restricted access and track each user's activities.

The learning curve doesn't matter if you take a course or are a professional accountant.

Approval System-Instead of entering data manually, check and approve the entries.

Real-time data access-Many offices or factories can be synchronized at the same time, allowing all users to view the pertinent data and amend entries.. Data synchronization is done in real-time, so you don't have to worry about it.

Transit is a possible ERP software solution. You have access to your data whenever and wherever you choose... Access your data from any device, including your Macbook, laptop, tablet, smartphone, or mobile phone.

Your field staff can be granted access. They can also update information on their mobile phones in real-time. It will allow you to capture data directly at the source, simplifying reporting and MIS.

If you have questions, please contact us immediately with ERP consulting services.

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Conclusion

Analytics-It is all about making the right decisions at the right times in business. ERP solutions As they easily track their business process, business owners can make informed decisions. All stakeholders are regularly updated on multiple aspects of the business through MIS alerts. Additionally, they can safeguard the data they require thanks to mobile access to their dashboard, all reports, and graphs...

Usability- ERP software solutions are intuitive and easy to use. It can be used easily if the user does not have any prior accounting department knowledge or software training. ERP can be used in SMEs where business owners want easy-to-use and understandable accounting information.

If there are many offices, factories, or godowns nationwide, you don't need to purchase multiple licenses of ERP software packages. ERP is also built with powerful database management software and the latest technology. This means that you don't need to buy expensive server large data copies.

These are the main benefits of ERP's accounting module. You can reap many benefits from ERP implementation. Contact us to learn more. ERP solutions for your business processes.