As more ERP systems are integrating into the cloud, companies are gaining increased value in overall enterprise management systems. ERPs allow your company to coordinate and integrate with a variety of enterprise cloud applications, analytics, inventory, and warehouse management tools. Additionally, ERPs have proven invaluable in gathering and transmitting data between enterprise cloud applications to manage critical business processes via KPIs and dashboards. As technology transforms to meet the needs of modern businesses, ERP systems continuously develop to offer valuable business data, especially for financial teams and workflow management.
Forecasting financial data is an important process because it allows management to review an organization’s current financial state by comparing actual and projected financial figures. Financial planning gathers information on a current fiscal year’s actual data and analyzes various outcomes and forecasts. Using ERP ensures your collected data is accurate, which is important as a financial forecast is only as reliable as the data gathered.
Traditionally, gathering actual data and analyzing variances is a burdensome task that shifts focus away from financial planning’s primary role of forecasting. Using an ERP system allows your company to streamline these processes, ultimately saving your financial team time. ERP software can be designed to forecast and record data, configure the actuals into financial planning models, and provide financial planning training for variance explanations.
One of the most important factors in a successful business is its ability to successfully and accurately manage its financial data. ERP financial management software helps to streamline your processes, increase accuracy, and reduce costs. When financial processes are automated, analytics offers valued insight and management decisions efficiently made.
Additionally, ERP systems are used to prevent errors in accounts and observe company activity.
ERP systems concentrate overall business and financial data, allowing users to gain a comprehensive view of their business and provide insights that would have otherwise been missed.
Presently, financial teams rely on ERP systems to ensure compliance with government regulations concerning data, operations, and transparency. Qualitative ERP systems are entirely integrated with a company’s important back-end information including units of sales, order management, shipping, receiving, and manufacturing. ERPs are able to ensure various safety and financial regulations are met. Through customization, companies can be alerted of vendor recalls and unusual financial spending activities. Being able to monitor data in real time allows financial professionals to ensure efficiency from anywhere in the world, as a benefit of a cloud integration.
Additionally, a full ERP system is also Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) compliant. GAAP is a common set of accounting rules and standards that dictate how financial statements are prepared. Public companies, nonprofit organizations, and government entities are required to prepare financial statements in accordance with GAAP. GAAS is a set of systematic guidelines used by auditors when conducting audits on companies' financial records. GAAS helps to ensure the accuracy, consistency, and verifiability of auditors' actions and reports. It is important a company maintains these strict guidelines throughout their business practices to ensure financial wellness and legitimacy.
ERP systems allow for transactional information to be made available for immediate review via real-time dashboards. Because of increased capabilities, financial teams are able to have complete financial visibility over a company’s receivables and payables. Additionally, they are able to gain a comprehensive overview of sales forecasts, inventory levels, and bookkeeping functions to help ensure profitability.
To exist in today's business environment, companies need to adapt to new technologies and increase effectiveness throughout all sectors. ERP software allows for companies to integrate other software such as CRMs or PRMs into their day to day workflow, furthering improvement to their day to day processes. There are many additional ways a company can benefit from implementing an ERP, including:
ERPs are a strong tool for financial planning professionals to utilize in their day-to-day. By aligning actual and forecasted reports and projections through an ERP software, information can be shared throughout the company and federal regulations can be met. ERPs allow for streamlined financial management that ensures a company stays on top of all their financial back office operations. By partnering with an agency to set up your ERP, you are ensuring the scalability and growth of your financial operations. ManoByte has experts ready to streamline your company’s financial processes.