An ERP in financial management plays a significant role to iron out the flaws of the system and make the entire financial process of the business highly accurate and smooth. It is considered as a crucial tool for the business – helpful in streamlining the reporting, banking, consolidating, income statements, balance sheets, and the financial accounting system. With efficient management of these all activities, the businesses have an assurance of achieving maximum efficiency, accountability, and productivity.
The most helpful feature that a good Financial ERP system includes –
- Keeping track of liabilities.
- Ensuring data integrity and security.
- Minimizing overall paperwork.
- Balancing multiple bank accounts.
- Maintaining a complete and accurate audit trail.
- Amortizing prepaid expenses.
However, the financial management of any business is a quite juggling process that needs extremely high accuracy. The main responsibility of a financial department is – tax filing, compliance, audits and they also examine financial records, manage cash flow and analyze account options. The ERP Software for Financial management or you can say the account management helps these departments in many ways with an advanced suite of tools – efficient to support the management of huge accounting activities.
Also, the ERP system keep-safe the data for a lasting time. It keeps an appropriate record of all financial activities – done in the previous year to the present time. These data help the business in the end year to analyze the whole revenue generated in the whole year, how much profit they gain and which cost should be added or discarded in the coming year.
Here are some highlighted features of ERP software that helps a business in the financial record management and year-end closing –
· Financial Analytics
The financial ERP analytics are the datasets that help the accounting process to analyze the behavior and figure out the pattern of a business transaction. These benefit all the business processes – sales, marketing, supply chain management, and so on. It provides the accounting department with valuable business intelligence – helpful to generate reports and metrics to forecast future outcomes and manage risk.
· Payment Systems
The financial ERP system keep an appropriate record of the whole transaction done in the business, whether its of client end or the management end. It keep safe the exact data of orders, sales, client payments everything. This helps in generating an appropriate report of the entire cost and makes it possible to make & receive payments in the due time.
· Easy Access of Data
The major benefit of the ERP software in financial management is – it can store the confidential data with extreme safety. Only authorized can able to access the data to edit and manage, as per the access you allow. Also, the multiple reporting feature and modules discard the need for maintaining spreadsheets and paper files. This makes it possible to get an accurate and sorted report of the whole financial activities of the business when needed.
· Cost Saving
ERP software saves huge cost of financial process of the business in many ways. Firstly it cut down the cost of operating numerous financial activities by automating various business processes. That results – only 2-3 employees are now able to handle the major financial activities with accuracy.
Research shows that business owners who have invested in ERP have saved between 10 and 15 percent in operating costs and up to 30 percent in labor costs. Thus the ERP system is very crucial to handle the business process with accuracy.
These are the major benefits of the ERP system that allows financial management departments to manage general ledger and payables and optimize multiple business processes. To avail these benefits for your business, you can associate your business process with highly advanced ERP system provided by AxolonERP.