Your financial department can make or break your business, depending on its efficiency. You need to make strategic and purposeful financial decisions to succeed in your business. One of the best ways to streamline your operations is with ERP (Enterprise Resource Planning) systems.
A company’s cash management and capital planning are essential for its success. If employees must perform these processes manually, it takes a long time and a lot of effort.
An integrated ERP system automatically enables you to merge similar processes from various departments. With such a system, you can combine the financial information of the accounting and sales departments, for example.
With this integration, you can manage multiple areas of your business from one place to save time on different tasks. As a result, you will be able to create a reasonable budget, allocate resources, and manage payments without moving between departments.
Explore seven more advantages of implementing cloud ERP software in your financial management.
- Financial Data Transparency
Unlike traditional financing processes, ERP software allows you to access financial records instantly. By using this system, you will be able to find the correct information quickly, rather than having to scroll through hundreds of physical files. By doing so, you can monitor your company’s financial health.
An ERP system allows you to monitor your billing schedules, payments, and revenues. As a result, you can track every transaction with customers. All information will be available so you can make a well-informed decision.
Additionally, you can consult the financial statements whenever necessary to clarify misunderstandings after financial transactions.
- Financial Process Automation
With an ERP system, you can focus on your most crucial operations and eliminate unnecessary processes. Additionally, it can automate your financial operations, making it easier to manage your accounts receivables and payables. The improved cash management process will result in better cash flow.
ERP systems enable you to integrate financial information from various departments automatically. You can manage your finance department more efficiently without manually handling each step.
- Less Human Error
Manually gathering data is challenging due to human error. Your employees may make mistakes when filling out financial information, which can have dire consequences for your accounting. Financial errors can distort the analysis and reporting of financial data.
The consequences of such mistakes can be severe if they are not corrected early enough, such as tax complications. An ERP system will prevent those errors since it runs automatically, so you will not have to worry about collecting incorrect information. This way, you can rest assured that your financial data is error-free.
- Real-Time Data for Better Decision-Making
An ERP financial management system will also give you a clear view of your financial situation at any given time. Keeping track of your accounts is convenient, and you can make appropriate decisions based on your financial plan. The information will allow you to conduct audits, monitor costs, manage accounting, and estimate revenues.
With a clear view of your business’s financial health, you can make specific adjustments to boost productivity. Since you will have access to the correct information, you will always be able to handle challenges and find a timely solution.
By using a modern management system, financial decisions will be easier to make.
- Financial Reports Delivered Quickly and Accurately
Preparing financial reports from transactions is time-consuming and energy intensive. This information may be needed by banks, shareholders, and tax regulatory agencies, among others. For your staff, assembling financial reports can be laborious, especially during busy periods like the end of the month.
An ERP system eliminates all those hassles by helping you manage your finances. You can either print or email the financial reports generated automatically by the software. Moreover, the system is designed to deliver accurate information consistently, so there are no errors in the financial statements.
- Financial Data Security
Financial transaction data is sensitive and must be protected at all times, and a solid security system is essential. You can protect your information with your ERP system instead of installing security software.
Unauthorized personnel will not have access to your records without your permission or knowledge. You will not have to worry about falsified financial data or unlawful modifications to your accounts. In contrast, you will have full access to the data and can make whatever changes you wish.
- Improved Management of Foreign Currencies
The last benefit we will discuss is managing foreign currencies. Those who do business with international customers may receive payments in foreign currencies. In such a scenario, the financial department is responsible for converting the money into the company’s currency.
The process can be time-consuming and challenging, leaving your cash flow short. On the other hand, ERP software allows you to relax and watch the system automatically convert the foreign currency to your currency of choice.
Managing your finances can be challenging, especially with traditional financial management tools. With a modern cloud ERP system, you can streamline your financial operations. With Acumatica‘s cloud-based approach to financial management, businesses of all sizes and industries can easily manage an increasingly complex and decentralized environment with ease.
It pays to work with a partner with the skills, expertise, and proven success to make your ERP system work for you, whether you need a straightforward implementation of financial management or want to extend it to distribution, manufacturing, field service, and beyond. We have the experience to configure and implement a cloud ERP solution for your company. Contact us today.