3 Ways ERP Improves Financial Management

An ERP solution that is properly implemented provides the organization with an extensive view of how the company is doing from an income, expense, and profit standpoint. From a glance, management can view complete details related to their accounts and how they integrate with business analytics. More importantly, this total view of the company’s financials helps to improve financial control and manage risk.

Cash Flow

To any business, cash flow drives everything forward. 52 percent of business decision makers reported that they realized better cash flow and liquidity reduces the age of customer debt.

This improvement comes as a result of the ERP system helping the business to better manage inventory through setting stock levels.

Asset Management 

The poor management of a business’s fixed assets can cost money. ERP solutions offer ways for companies to:

§  Easily track and manage company assets

§  Access comprehensive reporting of asset valuation and location.

§  Better monitor assets to prevent theft.

Reporting 

Companies that employ data-driven decision management are reported to have 4 percent higher productivity rates and 6 percent higher profits than those that don’t, according to the MIT Center for Digital Business. The right ERP solution can put this type of data into the company’s hands to give it this competitive advantage.

ERP systems allow instant visibility into data such as accounting, budgeting, financial reporting, sales, order management, and billing—all of which can be used by management to make better decisions.

Data can be useful to C-level management, as well. With the ability to capture real-time insights into what is happening in the business, financial officers and executive officers will be able to see exactly what is happening in the financial function or any other arm of the company.