Financial Controlling

After working with several clients on ERP projects, we’ve identified the following gain by employing finance management as part of an ERP suite.

·       Asset Management that is Better

When it comes to asset management, ERP software allows businesses to gain insights and improved visibility. Companies hold a variety of assets, including machinery, buildings, technological equipment, and office furniture.

Customized asset tracking and reporting are beneficial when a corporation considers the quantity, value, and other essential details. Organizations may improve asset accountability and reduce the risk of loss with ERP software since they now have more effective and timely inventorying procedures, which assist in minimizing hidden costs and inefficiencies. Better visibility and control over assets, machinery can help organizations avoid spending money on capital expenditures for resources they already own and reallocate.

·       Reporting on Money

ERP software provides firms with a sophisticated and efficient financial reporting solution to make better and more informed decisions. ERP financial reporting systems automate every step of a business’s financial reporting process and provide meaningful, comprehensive, timely, and highly customized management and financial reports, translating data and analysis into answers, actionable insights, and financial success.

ERP systems give senior management fast access to data such as accounting, financial reporting, budgeting, sales, billing, and order management, which can help them make better decisions.

·       Management of Variance

Variance management is a crucial aspect of financial management that should not get overlooked. ERP software can also benefit an organization’s accounting department by establishing standards. By analyzing the cost of production and any related manufacturing expenses and establishing a clear baseline, companies may more readily review and modify spendings for every project to meet expectations.

Companies can use an ERP solution to quickly identify and manage cost deviations relative to the budgeted amount. The company can rapidly determine why the cost variance is occurring and correct it before eating into earnings. Companies can set new norms if expenses are lower than projected, and favorable conditions can get readily maintained.

·       Efficiencies in Budgeting

The financial health of a company can get demonstrated via ERP software. Components of these software programs, for example, may be used to assess advertising and marketing activities. They can also look into business procedures and the efficiency of the supply chain. Remember that, in the end, a well-designed financial management module can mean the difference between economic waste and corporate struggle and a leaner, more efficient, and effective business model that generates more revenue and cash for reinvestment.

·       Compliance

Financial and tax compliance gets required by all firms, and most ERP systems include it as a standard feature. Failure to achieve crucial requirements could have disastrous consequences for the business. Having the Internal Revenue Service on your tail and putting your company’s survival in peril isn’t fun. No one wants to manufacture data or take shortcuts to money, yet organizations don’t always have all the information.

It is where enterprise resource planning software may help. An ERP system guarantees that businesses have tracking capabilities and audit trails, ensuring that they never get caught off guard. You can trust the figures and know that the IRS will not detect any errors.

·       Audits

Most businesses require an external audit regularly. Financial management software integrated into ERP software can assist the company in better preparing for the audit. E-discovery is one of the features that the solution can give. When a legal question or an outside investigation into a company’s finances arises, an ERP software system may help firms be more transparent and resolve the issues.