10 Dec Benefits of ERP for finance industry
In the finance industry today, professionals of accounting and finance are coping with an increasingly wide array of complex business processes and interpret data from a variety of sources. So, what are the benefits of ERP for finance industry? Companies seeking fast growth should be ready to face new challenges and quickly adapt to new technologies, business practices, and more efficient ways of communicating with clients. In order to succeed in the finance industry, the integration of all business processes and open access to various financial functions are required. It facilitates communication and information sharing, resulting in dramatically increasing productivity and speed.
ERP is a set of tools and processes that help to interconnect departments and functions of the company into one system. ERP has a single database, enabling various departments to share information and communicate with each other. A qualitative ERP system consists of various modules such as financial management, human resource, customer relationship management, sales, purchase, production, etc. The financial management module is considered as one of the most essential in an ERP package. It consists of various applications: general ledger, accounts payable and receivable, currency management, cash management, payroll management, deferred revenue accounting, intercompany accounting and intercompany reconciliation, fixed assets. Financial management module provides the ability to centrally track financial accounting data within a framework of multiple companies, languages and currencies and charts of accounts. It provides company-wide control and integration of financial information that is essential for strategic decision making. This module generates financial reports for different departments and business units.
With the use of an ERP financial management module, it becomes easier to integrate key financial and accounting processes, manage and spend resources and financial reporting requirements. Financial management software helps to record and integrate transactions within the module, allowing you to see the financial impact on the company as a common system.
How can finance industry benefit from ERP?
- Speed the time needed to generate financial statements by streamlining consolidation across companies, charts of accounts, and currencies.
- Operate in multiple geographies, industries, and languages.
- Gain accurate visibility into business activities and performance with financial reports, integrate processes from various applications for a single version of the truth.
- Improve financial and managerial reporting by enabling reports of performance by company, business unit, department.
- Simplify financial operations while complying with regulations.
- Quickly and strategically measure, evaluate, and respond to changing business conditions and enable real-time insight into overall performance.
- Increase accounts receivable turnover through automation of credit and collections management.
- Optimise global cash management by reporting, analysing, and allocating cash in real time.
- Integrate with other systems helping to exchange information with any external applications, online financial dashboards, e-mail notes, etc.
- Operate more efficiently and get a complete picture of your financials anywhere, anytime no matter what browser or device you use.
Modern ERP systems are designed to integrate all departments and functions across a company into a single computer system that can serve different departments’ specific needs. ERP systems improve quality, efficiency of the business and increase opportunities for collaboration. The financial management module is most commonly implemented in the financial industry and is one of those modules which get implemented first. The use of ERP software in the financial industry guarantees the reliability and overall security of the accounting information, it provides support for decision-making and shows a real and updated forecast of the company. Effective financial management software becomes the starting point for all financial information that circulates around the company. The ERP systems combine and consolidate information and distribute it to users who need it. This means that they not only compile comprehensive information and deliver it, but also direct this information in the adequate format to the right person that needs it in a precise moment to perform a task.
ERP systems provide the ability for better visibility to financial management. You get increased asset accountability and reduce the risk of loss because of timely and effective inventory methods, eliminating hidden costs and inefficiencies. Better visibility and more control of assets help you avoid spending money on unnecessary capital expenditures for resources that you already own and which can be redistributed.
Modern ERP systems offer better access and greater security for your business. All components of the financial department can access the flow of control. However, everyone will only have access to a limited number of functions and will see the details and tasks that were previously allowed for him.
ERP functions simplify life in finance, helping operators to stay on top at all times and improve the return on day to day work processes.