By: Cesilia Faustina
The global ERP market is expanding and is continuously on the rise. In the wake of fraud and Allied Market Research, the global ERP software market was valued at $35.81 billion in 2018 and is projected to reach $78.40 billion by 2026. This shows the true power that ERP can have for industries, so why exactly is that?
misinformation and rising demands, it is clear to say that ERP systems are becoming more important for industries today. According to Allied Market Research, the global ERP software market was valued at $35.81 billion in 2018 and is projected to reach $78.40 billion by 2026. This shows the true power that ERP can have for industries, so why exactly is that?
ERP systems or Enterprise Resource Planning systems are business management software that allows organizations to efficiently handle and manage all their operations and planning, which is done through the integration of several functional systems. One of those core systems includes a financial system. A financial system is the motherlode of an ERP system, as every business process and workflow lead back to a financial need. So, an ERP financial system by itself can be defined as a system that gathers and manages financial data and generates related reports and calculations.
ERP systems or Enterprise Resource Planning systems are business management software that allows organizations to efficiently handle and manage all their operations and planning, which is done through the integration of several functional systems. One of those core systems includes a financial system. A financial system is the motherlode of an ERP system, as every business process and workflow lead back to a financial need. So, an ERP financial system by itself can be defined as a system that gathers and manages financial data and generates related reports and calculations.
The point of an ERP financial system is to ensure that all financial activities are taken care of with no issues. That said, one must also understand the reasons for going digital and implementing an ERP financial system, so here are some points to note about why ERP financial systems are crucial for your business.
Profit Tracking
Using an ERP system means a lot of things for your business, but one of them includes ease of profit tracking. Any business revolves around income and profit, making sure that your profits are documented and tracked are crucial, or else, you would probably end up with a huge mess. An ERP system allows you to watch the flow of money coming in and out and calculate/edit it from various parties and sectors. It will automatically make updates and changes based on any relevant factor, so this will up your productivity, accuracy and safety as a whole.General ledger
Ledger management is a key point for the success of businesses. It provides detailed documentation of all your financial transactions, which of course, also integrates with other systems within the suite, like inventory and HR.
This will store all financial transactions within one space, making it easier for any financial officer to create bank statements and create a healthy financial environment.
Accounts payable and receivable
An ERP financial system can also conveniently support your accounts payable and receivable. Any money owed or you owe will all be documented through this module. It can automatically generate invoices while reducing the number of errors, which would optimize your transaction workflow.
Fixed assets
This functionality allows businesses to manage all their assets. It is made to track the acquisition, depreciation, transfer, adjustment and retirement of your company’s fixed assets. It creates customized profiles based on the type of asset, which means businesses can track a list of their assets directly through a digital platform, which will make viewing so much more convenient.
Shareholders management
A business financial system should save the profiles of your shareholders and the transactions they have made. It helps to define various shareholders, whether they are individuals or institutions. It can also keep track of the occurring transaction and future ones. An ERP financial system creates a full summary to help businesses define any relevant parties and their transactions.
Collections
Such a system will also help with the collections stage of your enterprise. It will automatically generate any invoices, debit notes and credit notes for managing the collection of any cash payments. In addition, it will also directly perform any edits and changes to invoices and debit and credit notes based on any relevant actions or factors; this also includes the posting of invoices.
This module will help to create a conducive workflow for your collections process, through an automated system that can directly post, edit and update your invoices, helping to reduce time-consuming tasks.
Highly integrated
One of the best things about an ERP financial system is its flexibility. By integrating with different systems, any financial transactions from different sectors will be easily documented. This means it is much easier to track the company as a whole, whether from an HR point of view, supply chain management, or any other business area.
A system that can cater to various business needs and structure will surely be able to support any type of enterprise, making an ERP system highly desirable in today’s modern industrial setting.
The capabilities of an ERP financial system create limitless opportunities for your business; it also helps to organize and efficiently improve an average financial workflow. This means faster results, less cost and greater productivity. An ERP system is needed when looking to create a productive workflow, and essential if you want to stay ahead of the game.
Take a deeper look into the fascinating world of ERP financial systems by checking out ESKADENIA’s financial management and ERP suite.
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