Most businesses will express the necessity of ERP to manage finances and operations, especially smaller business who don’t have an internal accounting department. While the acronym, Enterprise Resource Planning, may sound like a lot, the purpose is pretty straight forward – to support operations and efficiencies in a business.
ERP provides businesses with the ability to deliver multiple business applications and functions all in one space. It supports an end-to-end process that includes elements of organisations including HR, distribution, finance and operations.
What is the purpose?
ERP has five key objectives that are designed to help businesses run seamlessly while reducing costs as much as possible. As a financial management software, ERP helps with the main objectives that come with business operations.
- Supply of funds for all parts of the business: Allocating funding is a tedious task, and human error can sometimes lead to funds being missed related to bills, resources and other costs. ERP is designed to ensure supply is consistent while allowing business owners to adjust this where needed.
- Adequate shareholder returns
- Use funds to optimise business growth and goals
- Safety on investments
- Planning of capital structure
How do you use ERP?
By integrating all applications into one scalable resource you can set goals, communicate with staff and manage stocktake, finances and processes. Most software systems will support you in usage so you can make the most of it, and you can help manage financial tasks such as:
- Investment: Manage fixed and current assets to maintain a certain level of financial security for budgeting, costs of goods sold and profit.
- Dividends: How do you distribute your net profits to best maintain your business? ERP can help decide based on shareholder scope and retained profits.
- Finance: Invest in new services or products, project profitability of these and assess time and mark-ups
- Operations: In the background functions like, payroll, salary and taxes are necessary to keep the business afloat. ERP takes the stress out of this so you can focus on what you know best.
Benefits of ERP
Organisations that choose an integrated, scalable ERP system will find they can benefit in a number of areas.
- Improve business insight using real-time information and auto-generated reports
- Lower operational costs by streamlining processes and creating best practices
- Better collaborations as users can share better share data
- User adoption rates increase as the user experience is beneficial and easy for all areas of the business
- Consistency in infrastructure – all business activities work together
- Management and operational costs are reduced due to consolidated and uniform systems
Manage your business better with ERP
It can be overwhelming to choose the right software for your business needs. As experts in ERP software, Arrow has introduced an innovative financial management solution that is scalable, user friendly and intuitive. Arrow values customisation, easy integration and security, which is exactly what Tencia offers.
For more information on financial management software and Tencia call Arrow on 1800 248 265.