Most people think ERP software is for production, inventory, and order management, so it might surprise you to learn that ERP systems are also crucial for financial management. You can collect financial data and produce reports such as ledgers, trial balances, income statements, overall balance sheets, and quarterly financial statements using an ERP system.
Here are some ways your ERP system can help you improve your financial reporting.
ERP software can create custom reports to aid in intelligent decision-making. It can provide detailed information in customized reports to authorized users.
Role-based reporting streamlines the process by generating reports with the information needed for each role in your organization. They get exactly the information they need and nothing that will waste their precious time.
Using an ERP system gives you instant access to critical data such as accounting, billing, budgeting, sales, financial reporting, and order management. Even if your current financial management software offers basic reporting, ERP software provides more in multiple formats.
You can produce reports in HTML, PDF, Excel, or Word, making them easier to share as needed while providing more varied data. You’ll get a better financial picture with easy-to-understand and analyze dashboards, Key Performance Indicators (KPIs), and reports. You can even make data available to external analysis tools or export data to Excel.
ERP software can aid financial reporting via variance management by helping to set standards and spot issues. By determining the exact cause of cost variances, companies can resolve them quickly before they cut into profits. In contrast, companies can set new standards and easily maintain favorable conditions if costs are lower than expected.
Companies can review costs over a specific time period or according to classifications with an ERP system. Aside from allowing companies to review and analyze cost allocations and make informed business decisions, this also allows them to reference multiple cost balances and create cost tables.
Because an ERP system is fully integrated, companies can run everything, including financials, from one system. Using a straightforward system minimizes manual processes and errors while also eliminating the need for maintenance and upgrades on additional systems.
Integration saves time because it eliminates the need to cross-reference and re-enter data into multiple systems. Customization also saves time because it allows you to build an ERP solution specifically for your business needs.
Poor asset management can lead to millions, or even billions, of dollars lost each year. ERP can solve this problem by giving you better visibility and control over your company’s assets. You can also benefit from customized tracking and reporting on those assets.
Real-time reporting on asset value and location saves time and money. Accurate tracking means an end to unnecessary spending on assets you already have while also reducing the likelihood of theft. You can track depreciating and non-depreciating assets for an accurate picture of what your company has, so you can better determine what it needs.
This is by no means an exhaustive list of ways to improve your financial reporting with an ERP system. You can also take advantage of:
- Accounts payable and receivable
- Risk Management
- Ledger management
- Profit tracking
- And more
At ASI, we understand that your business needs are unique, and that’s why we take the time to discuss your long and short-term goals as well as the obstacles that stand in the way.