ERP system is a comprehensive software tool that helps streamline and manage operations by integrating multiple business processes into a single financial management systems.
One of the core components of Enterprise Resource Planning (ERP) software is its finance and accounting module.
It is an essential module as it not only gives an overview of the businesses’ expenses, revenue, and profits but also acts as the hub of all crucial business data.
This data is then made easily available in the form of reports that come in handy at the time of decision-making. All this data is also accessible to other business departments and ERP modules.
When needed, you can also use this data to communicate with your external partners such as your vendors and clients.
Without financial management ERP software module, your business can’t run as smoothly, there will still be dependence on other software tools and a lack of efficient data and business reports.
There are 9 key features of ERP financial management systems, let’s understand more about them here :
This is a fundamental function of a financial ERP tool that provides a detailed record of all financial transactions. It helps you keep a note of a variety of things – assets, liabilities, income, expenses, and capital accounts.
You can either make entries directly into General Ledger (GL) or anywhere within the application, you’ll be able to see all entries in one central location within the ERP system.
This function integrates with all other manufacturing modules in ERP such as inventory management, customer relationship management, and others.
The term “Accounts Payable” refers to the sum total of the amount that your company as a business owes to its vendors and other creditors.
When the accounts payable data is integrated with your business expenses and purchase history, you can get detailed insights into the cash flow of your business.
When you use an ERP tool and automate accounts payable, you not only save a lot of time and manpower in maintaining records and making these entries but also prevent human errors.
Exactly opposite to accounts payable, the term “Accounts Receivable” refers to the exact amount that the customers owe to the business. This feature helps manage customer invoices and payments in cash.
A few advanced ERP tools also offer an additional facility for customers to access their invoices and pay from within the financial ERP system itself. In case of a recurring payment, you can use the ERP system to generate recurring invoices, automate payment reminders and share account statements as well.
This feature helps the business owner get a bird’s eye view of the financial activities and know the overall financial health of the business.
This data can be used to calculate ROI, make plans to reduce incurred costs, and even forecast sales to predict profits based on historical data.
If you use the ERP tool to also help you track costs, you can get accurate details for all the individual cost centres, analyse procurement from different vendors, and also evaluate how your business is spending money.
ERP tools have special capabilities to analyse all financial data and give you business insights to plan your business activities for the future.
The ERP tool gives you real-time reports from real-time data and this in turn helps you manage your business finances with great ease.
As a business, you can also use this data to accurately predict demand and sales trends and take informed business decisions for the company’s finances.
Fixed assets are the tangible assets of a company. This feature helps keep track of and manage fixed assets such as manufacturing equipment, computers and IT hardware, business vehicles, office space, warehouses, etc.
This feature automatically calculates and takes depreciation into account, checks and manages compliance requirements, and also takes care of the tax implications.
This is a central feature as fixed asset management not only helps forecast expenditures based on depreciation but also helps create budgets.
This feature of financial ERP software solutions gives business owners and managers the ability to predict, analyse, and manage crises by mitigating business risks and risks from natural disasters.
Advanced ERP tools also help with risk management related to security, legal liabilities, compliance, and reputational risks. The feature also monitors money flow to ensure there is enough cash reserve to cover accounts payable.
This is the most beneficial feature for global businesses that deal with multiple currencies. It allows you to purchase and sell in foreign currencies and also offers currency conversion capabilities.
With the help of this feature, the financial ERP software is able to store taxation settings and calculate tax liabilities and provide support for tax reporting and tax audit features.
If you are a small, medium business and want to buy financial management ERP software, you must first have a clear idea of your exact requirements and then browse through the available ERP tools from different vendors.
Some vendors also offer a free demo, you can ask for that. Once you get a quotation for a customized solution, you can choose to buy financial management ERP system based on what fits your business budget and matches your business needs.
We would like to take this choice to introduce you to the most widely used ERP tool named Proximo by Autus CyberTech. Ours is a robust software that has been tried and tested by over 100k businesses around the globe.
We are humbled by the positive feedback from our customers and super proud of the 20k+ positive reviews that have been received for Proximo. We take pride in offering world-class financial management ERP software support around the clock.
If you are indecisive about investing in financial management ERP software, we invite you to get in touch with us to request a free demo and get a customized quotation. Although we are sure you would love the financial management ERP software, if not, there are no obligations. Click here to contact us today!
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