What are ERP Solutions? Understanding Accounting Software
ERP solutions work to consolidate all areas of a business to improve efficiencies, manage finances and profits and obtain visibility of all necessary business data. The system can support HR processes, operational processes, business innovation and investment opportunities. To put it simply, it functions as an accounting software and helps to streamline the backend steps necessary to keep business running.
What does ERP support?
ERP is designed to support the financial management that may be managed by an in-house accountant or with an outsourced business. Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise. Digital solutions have allowed for accounting to go online, and cloud solutions are now part of many businesses.
Today financial management can be run online. Enterprise Resource Planning provides support for the core objectives of accounting processes – freeing up time for business owners to get the job done.
Key objectives for ERP
- Regular supply of funds for all aspects of the business
- Adequate shareholder returns
- Utilising funds to optimise business growth and goals
- Ensure safety on investments
- Planning a feasible capital structure
While ERP focuses mainly on financial distribution and dividends, it plays a huge part in processes for business efficiency, creating a network designed to communicate better with each area of the business. It means back-end and front-end look and feels the same, and cross-department collaboration is easier and more holistic. ERP solutions support new successes and innovations, and business owners can reduce costs, increase efficiencies and reduce risks attached to business growth.
Using ERP to establish the four elements of financial management
ERP can help all areas of business operations and can help business owners set goals and analyse and congregate important data. It also helps build a financial management plan, where you can implement the four elements of financial management with all your information right in front of you.
- Planning: Investigate data and map out all possibilities with your ERP software. If you have a clear goal and understanding of your business objectives, you can start creating a plan with set tracking metrics.
- Controlling: With consolidated data and applications, you will be able to investigate exactly how each area of the business works to achieve your goals. This step is designed to get you thinking about your budget and funding distribution, as well as look at all necessary roles, tools and resources.
- Organising and delegating: Once you know your plan you can start setting up KPIs and processes that help yourself and others be held accountable for a part of the plan. With visibility using your cloud software, you can stay up to date on progress every day.
- Decision making: Use holistic data to make conscientious decisions about your business. ERP software can actually help guide you to smart business decisions, and each strategic decision will have ongoing data set up.