Skip links
financial management

ERP – A Solution for Your Financial Management

Many of us are familiar with the term Enterprise Resource Management (ERP) software.  To streamline and automate many back-office processes related to technology, services, and employee management, ERP is ideal business process management software.

Common thoughts that spring to mind when we hear the phrase “ERP software” include manufacturing, stock control, order processing, and quality assurance.  In contract, ERP systems are also effective in financial management.  An ERP system goes to considerable lengths to assist the administration of a company’s bottom line by performing functions such as bank reconciliation, tax management, capital management, account receivables and procurement, among many other functions.

 

What difference can an ERP make to your financial management?

An ERP financial management module is a piece of software that, among many other functions, gathers financial data and generates reports, such as ledgers, data on trial balances, income statements, overall balance sheets, and quarterly financial reports.

ERP software allows us to combine the financial management module with other applications, including inventory management, procurement, warehouse management, order processing, customer relationship management (CRM), manufacturing and planning, business analytics, and e-commerce.  This is great since it removes the need for redundant data entry in more than one software program and streamlines the company’s financial management and accounting procedures.

There are numerous ways how ERP can help with financial management, and some of them are listed below:

  1. Efficient Management of Assets
    ERP software improves asset management by giving businesses more meaningful information and visibility.  Assets might include machinery, buildings, computer devices, and office furniture.  Asset monitoring and reporting that is personalised to an organisation’s needs is benefical when that organisation is thinking about buying quantity, value, and other pertinent information.  With ERP software, businesses can improve asset accountability and reduce the risk of loss.  This is because ERP software has inventory techniques that are more effective and timelier, which helps minimise hidden costs and inefficiencies.  Additionally, ERP software enables companies to save money.
  2. Financial Reporting
    ERP software provides an effective method of financial reporting, facilitating and encouraging the formation of more informed business choices.  ERP financial solutions automate each stage of a company’s financial reporting process and provide management and financial reports that are relevant, comprehensive, timely, and highly configurable.  These solutions also translate data and analysis into answers, actionable insights, and the success of a business.

    ERP systems offer real-time insight into a variety of data, including accounting, financial reporting, budgeting, sales, billing, and order management, all of which may be utilised by top management to improve decision-making.

  3. Efficient Budgetary Planning
    Most successful company executives know and comprehend the significance of budgeting concerning their companies.  The ERP system of a corporation contains both the financial information and the sales numbers for the organisation.  Both revenue and costs for the foreseeable future may be easily calculated using this data.  The historical data on the company’s finances are, of course, stored within the system; hence, the finance department has access to all of the relevant information and can get started on the budgeting process.

    A company’s financial status may be analysed using ERP software.  For instance, this software provides tools that may evaluate marketing initiatives.  The effectiveness of the supply chain and related business operations can also by analysed.  Ultimately, the difference between financial waste and corporate struggle and a leaner, more efficient and successful business model that leaves the company with more income and capital to reinvest might result from a well-designed financial management module.

  4. Compliance
    Financial and tax compliance is a fundamental part of most ERP systems and necessary for all companies.  It is important to note that if a company does not comply with the applicable laws, it might result in disastrous consequences for the company.  It is never a pleasant experience to be aware that the HMRC is keeping a close ye on your company and posing a danger to its very existence.  When it comes to financial matters, no one intentionally tries to manipulate the figures or take shortcuts; nonetheless, businesses sometimes do not have access to all the information they require.

    The ERP software might be a lifesaver in situations like these.  Implementing an ERP system guarantees businesses can keep tabs on their operations by providing audit trails.  You can trust the statistics, and you need not worry about HMRC discovering any inconsistencies in your filings.

 

How can Cofficient and NetSuite ERP help?

Using manual methods like workbooks and spreadsheets for financial management rather than an ERP system might negatively affect a business.  Minor errors in a database or in the coding are prone to escalate into more significant problems.  Management can benefit from ERP systems because of the increased and instantaneous insight into budgeting, accounting, and financial reporting data.  ERP functionalities make life easier for finance personnel by assisting them in maintaining their current workload and improving the return on day-to-day business operations.

The NetSuite ERP system offered by Cofficient can be customised to meet the financial management requirements of your business.  The consolidation of your sales, service, project management, and operations departments under one roof will be helpful.  This will boost the efficiency of all departments by streamlining your operations.  Moreover, it will help with the effective financial management of your company.

Get in touch with us to lean more, and we will walk you through the process of selecting the software that will assist your company in becoming more digitally competitive.