Business world is rapidly changing. Most emerging organizations are moving towards EPR (Enterprise Resource Planning) systems in order to unite their cross functional business units. ERP system improves the quality of managerial accounting process, and training.
ERP software usually consists of multiple modules of enterprise software that are purchased according to what best meets the specific and technical capabilities of the organization. Each ERP module is designed for one area of business processes and it is used to manage back-office activities and tasks. The main purpose of using an Enterprise Resource Planning system is to centralize all the information that is shared by all the departments to improve the data flow across the organization.
ERP Function for Accounts
ERP system is more friendly for Accounts and provide effective tools to maintain database and improve their work flow as well. ERP helps accountants to manage their financial matter such as:
- General Ledger
- Fixed Assets
- Payable including vouchering, matching and payments records
- Inventory records
- Receivables and cash collection
- It helps to create tax code system to differentiate work, customers and employees.
An ERP gives solutions to accountants. It’s a resource management system that monitors the business financial and also track the records of tangible and intangible assets, human resource, material and purchase. Intangible is working hours, product life cycle, KPIs and customer relations, these are not directly related to financials but they impact company’s finances indirectly.
ERP accounting software provide you modules as per your company needs. If company is at entry level so software will be simple. As per your company’s requirement more complex data recording process and be inserted in it. Even you can add specific modules for your accounting functions which can be beneficial for your accountant.
So when you purchase software strictly for the financial management for your company, make sure to get all the modules which are useful for your financial information.
ERP consists of:
- Standard financial tools and reports
- Inventory control
- Billing and Purchasing
- Customer Relationship Management
- Industry-specific modules for construction, distribution and manufacturing
Advantages of ERP
- Best reporting system
- Provide Business Intelligent
- E-commerce integration
- Various modules
- Modular software
- ERP systems make it easy for order tracking, inventory tracking, revenue tracking, sales forecasting and related activities.
ERP is now the need of the hour for your finical management and it is so beneficial for your accountants. More businesses demand better collaboration of their operations. Further businesses are global now, and accounting software are beneficial for the company, people come and go but data would be recorded in the database and anytime it can be retrieved.
In short, EPR system has an impact on management accounting. As an operational system, it can give potential to accounting system and can achieve maximum benefits through it. Accountants can synchronize themselves with this ERP system and they can be more effective and efficient in their work.