Distribution and manufacturing companies that operate using traditional accounting techniques find it more challenging to manage their financial data as their business expands. The countless spreadsheets will eventually lead to confusion, wasted time, and be prone to error.
Combining your accounting function with enterprise resource planning software is a practical solution. It provides your accounting team several business-optimizing features, from project management and tax calculations to basic invoicing and billing. Here is how ERP accounting solutions help your business grow.
Understanding the Connection Between ERP and Accounting
Accountants manage the financial health of their firms by relying on accurate and real-time data. Unfortunately, most firms can only afford essential accounting software with limited features. You cannot depend on them to keep up with the financial demands of a large-scale business.
ERPs are comprehensive software businesses use to integrate and manage their business functions. Accounting is among the critical business areas that can fall under the ERP umbrella. These solutions include a financial management module dedicated to accounting and related processes, providing real-time data, seamless departmental integration, and efficient automation for your accounting team.
How ERP Helps
Data centralization is among the main advantages of combining ERP and accounting software. Unlike traditional software susceptible to inconsistencies and data duplication, ERPs store all company data in a single database. It makes it easy for accountants to access financial data while improving data integrity and accuracy.
Combining these two functions helps your accounting team make more informed decisions by leveraging accurate and timely financial reporting. The reporting capabilities include real-time insights into financial performance, profitability, and cash flow. You can customize your reports to your specific requirements to analyze trends, identify improvement areas, and make strategic decisions effortlessly.
Note that an ERP is a comprehensive solution not limited to financial operations. It extends to customer relationship management functionalities and aims to improve customer service and inventory support.
Why You Need Accounting and ERP In a Common Solution
Implementing an ERP in your firm has several benefits that cut across the different departments. In accounting, the solution gives you more data access control, unifies financial information, provides comprehensive reports, and helps with compliance.
The following are key benefits of using your ERP for accounting and financial management:
Improved Control Over Data Access
Financial management significantly relies on data access. Your accounting team should have easy access to company data to streamline your economic functions. Integrating accounting with an effective cloud-based ERP guarantees your team real-time data access and other advanced data security features.
You might also need a solution that can control access to sensitive information. Modern ERPs have access control features that help decide who gets access to what. Not having such a system makes controlling and managing company data challenging, as it consumes a lot of time.
The access control features are flexible. You can edit the permissions as you like, giving some employees exclusive access while revoking for some.
Improved Cost Control
Your finance department should find practical approaches to control costs and maximize efficiency in your operations. For accountants, ERPs automate the cost management process, significantly streamlining the effort. It automates processes like expense tracking, purchase orders, and invoice management.
Integrates Company’s Financial Data
Another reason you need to consider consolidating your accounting function with an ERP is data integration. These two solutions in a common platform eliminate manual data entry, reducing calculation mistakes. Note that financial management relies on accurate information; even the slightest errors can cost the company a lot.
Enforcing a single repository for all company information lets your team access company data quickly and efficiently. Financial managers will find their job easy as they don’t have to switch between systems when making reports. It reduces the time spent looking for financial information, giving them more time to focus on other critical financial processes.
Facilitates Better Management
Payment and billing management is not a smooth ride for established companies. The function becomes more challenging if dealing with departments with varying storage. ERPs come with financial tracking features to help follow up on payments.
The software tracks all your payments and notifies which accounts haven’t been paid on time. You can also follow up on customer and vendor payments to ensure timely payment. Integrating it with a CRM helps your business automate effective reminders, resulting in proper workflow in your accounting platform.
Advanced Report Generation
Most companies combine their accounting function with an ERP to enjoy advanced reporting abilities. ERP solutions generate accurate and comprehensive reports that are valuable in decision-making. It offers correct and updated information as the data is from a centralized database.
It’s essential to understand the significance of having reliable reports. They provide a framework for your accounting team to work and understand better your company’s financial health. You can also use these reports to predict trends and decide the best way forward.
The complexity of accounting makes it necessary to report your business finances to other parties for compliance. ERP makes this process easier since most are already GAAP compliant. GAAP standardizes data recording by specifying how to record financial information and what must be included to reflect actual business performance.
How Is GoldFinch a Solution?
GoldFinch is among the few cloud-based ERP solutions with an in-built accounting module for your business. The module handles all accounting processes and looks to streamline financial management. Some available features include accounts payable and receivable, tax compliance, financial reporting, project accounting, and general ledger.
If you want a solution that gives you complete control over your financial data, comprehensive reports, and real-time insights, GoldFinch is your best bet. It handles everything from tracking transactions to managing expenses for a smooth and error-free process.
Another significant reason to consider GoldFinch is its inherent scalability. Not many solutions can promise to grow with your company like it can. Businesses of all sizes effectively leverage the cloud-based solution based on their specific needs.
Why not sign up today and enjoy seamless integrations and streamlined workflows?