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Benefits Of ERP Based Financial Management

Friday, 06 March 2020, 04:47 Hrs

Apart from many noteworthy benefits of ERP ensuring a standardized business process, the implementation of ERP in accounting and finance can introduce more financial steadiness to the business. Finance and accounting is the core strength of any organization and detects the steadiness of the company in the market. Demanding undivided attention as well as error-free management, accounting and financial management can often be a matter of high consequences which often propels the organization to opt for ERP based accounting. Accomplishing jobs such as budgeting, payroll management, account handling, and many more, ERP accounting benefits is vast and advantageous.  

To highlight the significance of ERP in financial management, the below-mentioned points can be of assistance:

  1. In-Detailed Financial Reports: With comprehensive reports such as statistics of budget, cash inflow and outflow figures, balance sheets, due payments, income statements and many more, ERP enabled financial management can provide exact facts and figures which will help in the overall effective management of the organization. Basically, ERP based financial management will work towards improving the profit margin, encouraging savings as well as safe investments meanwhile integrating and managing the financial requirements of the company.
  2. No Errors or Duplicity: Due to the adoption of automated processes the entry of the data will be synchronized, flawless, and updated which will almost deduct the probability of errors and duplicity to zero. While gathering financial data from various departments can be a bulky affair, ERP enabled financial management will allow seamless integration of the data as well as a hassle-free data extraction at the time of need.
  3. Management of Assets: When comes to the management of various assets owned by a company such as machinery, equipment, furnishings, and electronic gadgets, ERP can certainly grant a better insight and visibility. By monitoring the assets efficiently, they can be protected from unwanted situations such as theft and damage. Implementing an ERP system will also ensure better visibility and control over the assets avoiding unnecessary capital expenditures.
  4. Streamlined Budgets: Maintaining the flow of finance according to the pre-planned budget is necessary for every organization. By assisting in variance management and tax compliances, ERP checks the financial flexibility of the organizations and helps in streamlining the budget. Effective planning and implementation of the budget with ERP can check the financial waste ultimately opening the door to more revenue generation.
  5. Improved Productivity: An ERP based approach to manage the accounts will enhance productivity as it will ensure an automated and optimized workflow. With complete financial transparency a leader can take better decisions contemplating the statistics of budget. Incorporated with other systems such as CRM and HRM, ERP enabled financial management can lead the organization to calculate correct sales figures, profit generation, the loss occurred and many more.

In a digitized world, utilizing spreadsheets and workbooks for managing fiancé and accounting is not an option. As the industry is more inclined to automation, implementation of ERP based system in the business process can help the organization in multi-tasking and taking better managerial decisions. Adopting ERP functions as a powerful tool in the financial and accounting management process can take the business to the next level.