The ERP finance module is at the core of many modern ERP software systems for one simple reason: finance and accounting transactions touch every area of business operations. Without a doubt, the state of an organization’s finances is essential to its well-being. Following are some truths about finance in business:
- Aspects of finance can include general accounting, accounts receivable, accounts payable, expense reporting, payroll, cash management, cost accounting, budgeting and forecasting, fixed assets, pricing, costing, billing and project accounting.
- Finance analyzes the profitability of particular products and markets and customers.
- Finance is the basis for many important business decisions.
- Finance records the pulse and vitality of your company.
- Finance helps your company to stay coordinated and under control.
But What About Finance and ERP systems?
It’s clear that financial data is among the most important (and sensitive) data an organization inputs, maintains and analyzes. When selecting an ERP system, the robustness of functionality for finance must be carefully considered. An enterprise solution can offer an organization a number of flexible tools to help track (and better) financial performance, including:
- Enhanced readiness for financial audits and compliance audits. With document management features in place, accounting entries can be backed up by information shown on document attachments. The back-up documents often provide great insight for analysis and audit.
- Architecture to support accounting changes. ERP systems can be architected to support changes to an accounting chart of accounts (COA) structure even after go-live. Security of financial data is often managed around the structure of the COA segments. In larger organizations, ERP provides for central management of financial activity across multiple business entities.
- Business intelligence modules. In many ERP systems, a business intelligence module now regularly provides additional insight. Data elements for sales, operations and finance are often linked together via the integrated ERP database and insights are provided via reports, analytics and dashboards. Again, better financial data supports better business decision-making.
ERP suites hold an advantage over best-of-breed approaches to enterprise systems because they provide out-of-the-box integration for financial information. The various modules of the ERP suite already work together. In cases where there are modules and applications outside of an ERP core, financial transactions are often a substantial part of the data that is shared among them.
Finance ties together your business processes and is a hub of your ERP system. Sooner or later, everything flows through finance.
Panorama Consulting has the expertise to get your financial processes and ERP system working well together. Contact us today to learn more about how we can help your organization realize all of the business benefits possible from its ERP system.
Blog post written by Greg Griffith, a business analyst at Panorama Consulting Solutions.