Easily Gain Total Control Over Financials with an ERP Accounting Module

20 Mar 2021
Nandinee Biswas
finance and accounting module in erp Retail ERP System in 2021

Financial decisions are crucial to any organization as it ultimately determines the long-term success or failure of the business. Subpar accounting practices and poor cash flow management cause monetary crises. So, while spending money, it is essential for you to know and understand why and where you are investing, and as you go on, address problems and make changes.

To effectively manage your financial dealings, you need a strong but flexible tool to serve you through different phases of your accounting management. Often, getting the right software helps you avoid dealing with statistics that you could not work with.

Using the accounting ERP module, you could put an end to the long hours spent in manual bookkeeping and get an accurate picture of your financial situation. It would track money earned and spent, with minimal effort on your part. The system would also streamline your bookkeeping and help you minimize errors. Getting a clear understanding of your company’s financial health is important for making smarter business decisions and improving its overall performance.

The finance and accounting module in ERP is easy to get started with and effortless to maintain. However, you can gain the appropriate benefits only when it is equipped with the relevant features. Let’s walk through what you need for attaining total control over your business financials and be better prepared for tomorrow.

Key Features of ERP Accounting Module

ERP software brings together various business operations, and finance management is one of the most crucial among them. The ERP accounting module facilitates the movement of necessary financial data to carry out your cash flow management job and increase productivity.

At the most general level, an accounting module in ERP is a software program specifically designed to gather real-time financial data and generate accurate reports.

It helps you effortlessly accomplish many complex functions such as accounts payable, accounts receivable, general ledger, budgeting and so on, while also allowing you to communicate your business’s financial information more clearly, when needed, to employees, customers, and vendors.

Here are the key features of a full-fledged ERP finance module that you need to consider:

Business profit tracking

The profit tracker provides you with a bird’s-eye view of your company’s overall monetary affairs, including your earning, expenses, and savings. Effective monitoring of these records would help you identify where most of your business profits come from and appropriately determine the return on investment (ROI) for any money spent.

The ERP with the financial module is meant to provide a road map for your business, help you make the best decisions in the current environment, and increase overall profits.

Workflow Automation

Ledger management

The ledger provides you with thorough records of all financial transactions. This accounting module integrates with other ERP modules to collaborate with and unify each entry done from anywhere, within the application, in a single central location.

When you have a complete record of all your transactions in a single place, it becomes easier for you to view them and quickly identify the anomalies. The system also makes tax return filing more manageable while helping you stay on top of spending.

Accounts payable and receivable

The accounts payable function is used for managing the funds a company owes to its vendors and other creditors. Whereas the accounts receivable feature is meant to keep track of customer payments, their invoices and money. When these two operations are automated, it saves a decent amount of money and time spent on the workforce while eliminating human errors.

The accounting ERP module automates accounts payable and accounts receivable operations, allowing you to quickly process large amounts of financial transactions with your vendors. This speeds up the collection process and boosts customer relationships. All-in-all, the tool instils ease of making monetary transactions and better control over cash flows.

Fixed asset management

The purpose of the fixed assets management tool is to manage the descriptive information of all the assets and use the data to monitor them and deliver accurate financial statements related to their appreciation and depreciation.

With a fixed asset management module, you could keep track of your company’s tangible assets as well as gain better visibility into utilization, costs, maintenance required, and depreciation status of each asset.

Purchasing and procurement management

The accounting ERP module needs features to manage the purchasing and procurement of supplies and services. This includes both requisitions and purchase orders. The system serves as the necessary tool for handling invoices so that they accurately match the payment information before it is processed. It is a vital tool for businesses that deal with buying raw materials and components in high quantity.

Risk management

The sustainability of a business often depends on its ability to predict the risks so that they can be mitigated on time.

The risk management features in the accounting module of cloud ERP software allow you to predict, analyze and manage crises efficiently. Apart from dealing with credit risk to ensure that your company has enough cash reserves, it also helps you deal with issues related to legal liabilities, compliances and reputational menaces.

Analytical reporting

Data analytics provide a real-time view of financial data. It is critical for maintaining a healthy financial condition for your company. The analytical reporting feature in the accounting module helps you make data-driven predictions and sound financial decision. The system displays reports in easily understandable formats to quickly analyze what is happening at that exact moment.

Tax management

The tax management feature included in the accounting module allows you to pre-define tax parameters while providing tax reporting and audit functions. It stores taxation settings and collects information from all of its financial documents into a single repository. Employing tax management within your organization can help you avoid spending time on mundane tasks and file accurate tax returns on time.

Shortlisting an ERP System with the Right Accounting Module

Focus Softnet designs cloud-based ERP for accounting and financial management to help organizations efficiently manage their business. We include integrated and full-fledged ERP modules in our accounting solution to ensure our clients leverage accurate financial information for consistent business growth.

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