There are companies who use accounting software for accounting and financial management, but also have enterprise resource planning software to monitor day-to-day operations.  But why 2 different software packages?  This separation is unnecessary and counterproductive.  There are at least 5 benefits of unlocking the financial management functionality within your ERP system.

However, at a high level, most of these benefits pertain to a single issue: integration.  Accounting systems need several different types of information inputs.  These are production management, inventory management, logistics, billing and human resources.  The accounting processes based on enterprise resource planning (ERP) software automatically combine these various data sources.

So what are the benefits of utilising the one system for everything?

1. Comprehensive Financial Reports
   Basic financial reports such as income statements and balance sheets are included in most standalone accounting software.  ERP, in comparison, provides access to a multitude of reporting options.  These reports provide you with more than just financial statistics.  They contribute to the efficacy of the management of your company.  For instance, financial forecasts can be made by analysing inventory levels and order statuses or by comparing the age of outstanding receivables with an anticipated stream of customer orders.
2. Increase Mechanisation
   Increased output can be attributed in part to the use of automated processes.  ERP and accounting are integrated, and automating operations that overlap between the two systems is simpler.  Many accounting and financial processes may be fully automated when ERP is used for accounting.  Cash management accounts receivable, payable, and others may all be simplified.  Automating tasks not only saves time but also eliminates duplication.
3. Elimination of Input Duplication
   The use of ERP software facilitates the speed and accuracy of data entry.  The need to manually re-enter data into one system from another is a typical result of using disparate systems.  Eliminating the need for dual input by manually entering data into both ERP and accounting systems is a significant benefit of integrating the two systems.
4. A Relatively Low Number of Mistakes
   Errors are commonplace when entering data manually.  Things like wrong customer names, switched phone numbers, etc.  These have the potential to lead to calculation errors, which therefore require some effort to rectify.  In the event that you need to find someone who made a mistake, you may also view the details of each transaction, including who was responsible for what.
5. Superior Command and Regulation
   Regarding financial reporting, using ERP software might offer you a leg up on the competition.  You can observe, in real-time, how various actions and choices will ultimately affect the outcome.

 

Management of Finances With NetSuite ERP

When it comes to implementing ERP based accounting, we’ve got you covered.  This means moving away from standalone accounting software and putting your trust in NetSuite.  It’s a process.  It doesn’t mean that it’ll bring great difficulty or complexity, but it does take care, attention and effort from all involved.  We understand that and will be with you every step of the way.

Get in touch with us if you’d like to discover the Benefits of Unlocking the Financial Management functionality within NetSuite.