An ERP system can help you improve your business’ cash flow. When your cash flow is handled efficiently, you feel confident that you can invest in new projects and grow your business.
What’s an ERP System?
ERP stands for enterprise resource planning system. It is a software system that helps you manage your business processes. It integrates with back-office functions to improve productivity. ERP systems such as Acumatica and Sage 100 ERP integrate with other related products like Sage Inventory Advisor to provide you with more powerful reporting solutions than a single product can provide.
ERP Helps Prevent or Fix Cash Flow Problems
ERP systems automate and integrate—that’s their function. It can automate routine tasks such as billing and invoicing, and integrate with systems such as accounting and finance to run reports on unpaid invoices, past due invoices, cash flow, and much more.
Your ERP system can help you improve your cash flow in the following five ways:
- Alert you to late purchase orders: Late purchase orders may indicate that items aren’t shipping out from your warehouse in a timely fashion. If orders don’t ship, you can’t collect payment for them. When you are alerted to delays, you can act to fix whatever causes the delay.
- Create purchasing and planning reports: With these reports, you can plan your inventory more effectively. Businesses often have most of their capital tied up in inventory purchases and any excess inventory merely takes up space and bogs down money that could be spent elsewhere. Such reports can help you reorder in time and plan your inventory more effectively.
- Streamline workflows: Improving efficiencies can save you time and money. Remember that an ERP system automates as well as integrates. What processes are you doing manually, now, that can be easily automated in the ERP system? Many of these processes, once automated, can save considerable time, thus freeing up personnel for other tasks.
- Follow up on past-due invoices: Past due invoices bottle up cash flow more than anything else. The faster you can collect on them, the faster you can infuse cash back into your business. With the alerts from your ERP system you can quickly follow up on open invoices to close out past due accounts and keep your AR up to date.
- Know your cash flow: ERP systems provide you with accurate, real-time reports. These reports can help you keep a close eye on your cash flow. You can keep a close eye on your current cash flow and cash reserves. The more information you have, the better off you’ll be.
An ERP that’s Right for Your Business
Acumatica is a cloud-based ERP that’s “right sized” for your business. The simple web-based interface lets you examine all aspects of your business. Easy and intuitive dashboards help you find what you need and the reports are so simple you can run them without much of a learning curve.
Sage 100 has helped small businesses streamline business processes for years. Previously known as Sage ERP MAS 90 and MAS 200, this modular ERP helps businesses to enhance workflows, manage finances, and increase productivity.
Both systems can help your business manage its cash flow more effectively. For help choosing the best system for your needs, contact Accounting Systems, Inc. (ASI).
At ASI, we work with companies to find solutions that fit their business needs. ERP systems, BI systems, and many other software systems are available to solve your business challenges. For more information on how ASI can help you, contact us today.