For small to mid-sized enterprises, an ERP financial management system can serve as a significant enhancement, especially if your current accounting software no longer meets your needs. ERP systems combine data from diverse sources into a singular, easy-to-use dashboard, offering complete visibility and eliminating isolated data pockets. The adoption of a cloud-based ERP ensures the provision of precise, up-to-date data, which is essential for maintaining a competitive edge and fostering business growth.

Before deciding on an ERP financial management system, consider these five pivotal questions to find out whether such a system aligns with your business requirements.

Five Critical Questions When Considering an ERP Financial Management System

  1. Would an ERP Facilitate Better Cash Flow Management? Cash flow management is crucial for sustaining expenses and promoting growth. An ERP provides a centralized hub for cash management tools, utilizing real-time data to obtain a comprehensive view of your financial status and cash position. It automates vendor payments, maximizing cash discounts. Business intelligence and reporting features can enhance effective cash flow oversight.
  2. Would We Benefit From a Better Multi-Vendor Payment System? Nearly every small or mid-sized business must deal with multiple vendors. Unfortunately, this can lead to extensive time spent on financial administration, with minutes or hours each month dedicated to paying bills, tracking down invoices, reconciling invoices, gaining approvals, and more tedious tasks. A contemporary ERP system simplifies multi-vendor payment processes, often incorporating AI-driven automation to streamline tasks like invoice matching and approval routing, thereby enhancing operational efficiency.
  3. Do We Need Help Monitoring Costs? An ERP system with integrated AR and AP capabilities extends its usefulness beyond basic accounting functions. This sort of system actively tracks and highlights cost trends. This allows for cash flow management based on accurate, real-time data, leading to more precise budgeting and financial forecasting. Precise forecasts like these will help lower risks, as you will no longer need to rely on someone’s hunch!
  4. Would Automated Scheduling and Alerts Be Advantageous? Many of us, whether in our personal or professional capacity, have forgotten to pay a bill on time and experienced fines or aggravation as a result. Missed payments can happen to anyone. Thankfully, an ERP financial management system serves as a virtual assistant, providing automated reminders and tracking bill due dates. Such a system runs accounts payable (AP) and accounts receivable (AR) aging reports, offering insights into outstanding balances and past-due accounts, thus ensuring the capitalization of vendor discounts through timely payments. An ERP financial management system can also automate the complex task of approving AP and AR invoices. Reconciling bills, sending bills for review and approval, and reconciling bank transactions can all be done automatically.
  5. Do We Need to Enhance Interdepartmental Communication? An ERP inherently breaks down communication barriers between departments by providing company-wide access to shared data. This shared information resource fosters collaboration, informed decision-making, and improved communication across the organization. No more will your employees have to “chase down” a document that’s been lost in someone’s desktop or downloads folder. They will have all the information they need right at their fingertips.

If You Answered “Yes” …

If you answered “yes” to one or more of these questions, an ERP financial management system may be right for you. In our experience, we’ve found that small and mid-sized businesses can greatly benefit from the integration of an ERP financial management system, which streamlines accounting and financial management processes, thereby boosting overall efficiency and financial stability. If you’d like help selecting, implementing, or customizing one of these systems, ASI is here to help! Please contact us or schedule your free consultation today.