Enterprise resource planning (ERP) software is an integrated suite of customizable applications that enables the business to integrate and manage non-core processes. From tax management to bank reconciliation, from capital management to purchase management, an ERP system can provide consistent support to all the departments. A real-time accounting system like ERP also allows you to review financial history, plan for the financial strategies, and ultimately gain a competitive edge in the market. In all, it effectively streamlines the other important processes within the organization.

To know how such systems can add more value to your accounting process, here’s an article highlighting all the essential steps:

  • Integrates and Manages Your Accounting Needs: From estimating capital requirements to maintaining the cash flows, from preparing the budget to allocating the surplus, there are a number of activities to look after. In this regard, integrated ERP software can help you to carry these activities with maximum ease and efficiency. Also, it allows the business to unify the data in one place and ensures at most data security. To know more, let’s understand the role of ERP in the accounting world: 
    1. An ERP system can accurately estimate the capital requirements and facilitate proper management of cash.
    2. Helps in the allocation of costs on direct and indirect activities such as labor, raw material, transportation, etc.
    3. Improves customer payment schedules, credit management, and budgeting.
    4. Track sales, revenue, and profit activities regularly.
  • Automated Systems: An automated system like ERP simplifies the operations related to accounts and thereby enhances the cash inflows. Also, it optimizes the business processes, eliminates redundancy, and helps the business to concentrate more on core operations. ERP software has the ability to accurately analyze and compare functions across departments, without the hassle of referring to multiple spreadsheets. The financial management modules of the software feature options such as multi-lingual support, charts of accounts, and different currencies. At the core, ERP systems are highly adaptable, customizable, and suitable for every kind of business. 
  • Data Security and Quality: Integrating information from multiple departments may hinder the privacy and quality of the data. However, ERP systems feature a centralized repository of information that improves the accuracy, consistency, and security of the company’s data. Also, it provides the opportunity to edit, manage, co-author, and safeguard the information as per the convenience. ERP system provides access to authorized parties and also enables effective backup of critical data. The reporting options and financial management modules of ERP can eliminate excess paperwork, irregularities, and inconsistency throughout the organization. 
  • Easy Tax-filing and Audits: Accounting software automatically organizes and stores all receipts and invoices in a cloud-based system. Also, ERP generates important financial statements such as balance sheet, P&L, and cash flow statement. Such documents or statements are useful for the stakeholders to analyze the historical financial health of the organization, current performance, and potential opportunities to grow. Additionally, ERP ensures regulatory compliance, validates data, and produces automated reports. This allows the business to effectively prepare for tax season, avoid heavy penalties as well as reduce the cost of continual audits.

Conclusion

Accurate accounting and financial management are crucial for the success and survival of the business. Implementing ERP systems can add more value and transparency to the activities of your business. It can also streamline the accounting needs, avoid manual errors, and thereby enhance the profit digits of the organization. On the whole, better productivity, increased efficiency in operations, and fewer errors encourage a successful organization to outsource ERP & accounting services while keeping their main focus on business growth.