It is a no-brainer that ERP software integrates various business processes into a centralised system to eliminate any bottlenecks that impair data flow. While ERP systems are often linked with production, inventory, supply chain management, and more, accounting and finance teams too can leverage this solution.
From impact of inventory movement on finance, profitability tracking of each sales order, and linking expenses to cost centres, bank reconciliation, and tax management, the finance department deals with a multitude of complex processes. Hence, they are always in dire need of a tool that can help streamline processes and ensure transparency.
That’s when the financial module in ERP comes into play!
What are Finance Modules in ERP Solutions?
The finance ERP module handles functions related to financial management. Since the functions of each department are integrated in an ERP solution, it is easier for the accounts team to achieve accounting accuracy with this module.
The finance module’s key responsibility is to glean financial data and convert them into reports. It enables you to monitor the real-time value of a material, which thereby improves productivity and revenue.
5 Ways How ERP Software Can Help in Financial Management
1. Profit and Cost Tracking
Gathering and analysing data on profit items is of paramount importance for any business. An ERP finance module enables you to track profit and get an aerial view of your organisation’s financial health. This will give you an insight on the major sources of profit and cost. Basically, you can plan your next move with the help of analytical reports generated through profit tracking. Finance ERP modules also automate profit calculation, which eliminates manual errors.
2. Ledger Management
Business owners do have the bandwidth to monitor their transactions on multiple platforms. And that’s when the finance module in ERP comes to your rescue. With the ledger management feature, you can keep a record of every transaction and get a 360-degree view of all your assets, capital accounts, income, expenses, and liabilities. The unified view of your financial data enables you to better strategise your business growth.
3. Accounts Payable
As a business owner, you might have come across instances where you had to face severe cash shortages due to the gap between your income and expenditure. ERP for finance allows you to have control over your cash flows. The accounts payable feature enables you to manage the funds owed to vendors / creditors and process invoices. The finance module will ensure that you never run out of money to pay off your debt.
4. Accounts Receivable
The accounts receivable functionality enables you to keep track of customer payments and manage invoices. You can also integrate a payment gateway and allow your customers to access invoices and / or make payments online. As this offers a convenient payment experience, businesses also witness repeat customers.
5. Manage Taxes
Evaluating your taxes can be a daunting task, especially if your business operates in multiple sales tax jurisdiction. The financial module in ERP is inbuilt with tax intelligence, which facilitates complete adherence to the regulations. Complex processes like tax audit and tax reporting can be effortlessly managed with an enterprise resource planning solution. It offers you the flexibility of calculating tax on each line item as well as on the entire document amount.
The ERP finance module will fast-track the financial processes of your business. It offers auditable revenue and expense management, which enables the company to be explicit while communicating financial details to both vendors and customers.
At SourcePro, we offer customisable ERP software with robust integration of the finance module. Our tool can forecast costs and revenue to create an accurate budget. Get in touch with our team and explore the power of ERP.