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ERP finance module allows businesses to manage their budget efficiently and forecast better.
Enterprise Resource Management (ERP) module plays a crucial role in managing critical business applications — Finance & accounting, sales, marketing, warehouse, inventory, vendor relations, customer relations — conveniently through well built KPIs and dashboards. Recently, with the advent of cloud-based applications, ERP systems make it easy for crucial data to flow between various business departments. Due to these features, the ERP finance module is gaining popularity as it simplifies the financial teams’ jobs and streamlines workflow management.
This article will focus on the top 5 key features of ERP finance modules and how they help companies manage their finances effectively.
1. ERP finance module increases accuracy.
One of the trademarks of successful businesses is their ability to manage their financial activities efficiently. Unfortunately, most companies, especially small and medium-sized enterprises (SMEs), depend on their workforce for managing their financial data. It gives rise to numerous errors and also decreases the speed of operations. On the other hand, high-performing companies use the ERP finance module to manage their financial processes. The ERP finance module’s analytics feature offers valued insight and collects critical market data that helps make data-based decisions. It allows users to gain a 360-degree view of the financial data in a single dashboard. Moreover, it provides insight that otherwise would have been missed. The ERP finance module also takes on trivial financial tasks like handling receipts and making bills, which frees your workforce for doing jobs that require creativity and intelligence.
2. ERP finance module substantially increases security and ensures that you always remain compliant.
According to a recent report, RBI declared that bank frauds have more than doubled, from Rs. 71,500 crores in 2019 to Rs. 1.85 lakh crores in 2020. This data wouldn’t have sounded so horrific had banks used ERP finance modules to manage their financial data. ERP finance module handles back-end data — sales, shipping, receiving, and order management — effectively. Moreover, it takes care of vendor recalls and monitors any unusual financial activities in the system.
Another advantage of the ERP finance module is that it ensures that you remain compliant. You might be aware that governments worldwide are framing strict rules and regulations to clamp down on frauds and cyberattacks. Thus, it would be best to remain compliant; otherwise, you will attract substantial government penalties. The ERP finance module is Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) compliant, which ensures that you remain cyberattack-proof. These steps help maintain consistency and accuracy of financial reports, thereby ensuring financial wellness.
Also Read: ERP and Cybersecurity – What no one is talking about?
3. ERP finance module helps view data in real-time.
Financial data enables you to gain a comprehensive picture of your business performance. It helps you brainstorm practical financial goals based on data and prepare financial metrics used in tax optimization, asset management, risk management, and making other strategic decisions.
Here are 9 features of the ERP finance module that will help you form a comprehensive business strategy:
a. Revenue growth
b. Economic Value-Added
c. Profits
d. Revenue
e. Growth indices
f. Operational efficiency
g. Liquidity
h. Net Cash available
i. Profitability ratios
j. Capital efficiency & solvency
These parameters will help you form a comprehensive business strategy encompassing the real-time market situation and the returns you and your investors will generate.
Also Read: 3 ways to save yourself from ERP implementation disaster
Conclusion
ERP finance is a comprehensive business module that helps you plan your financial activities conveniently. It allows you to make data-based forecasts and projections that are suitable for the market. Moreover, it also keeps your financial data safe and will enable you to remain compliant with government laws and regulations.
At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in
Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.
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