5 Game-Changing Ways To Improve Your Financial Management With ERP

April 19, 2023
5 Game-Changing Ways To Improve Your Financial Management With ERP

Is managing your finances traditionally giving you nightmares? Well, the legacy system for financial management can be a tough nut to crack for both business owners and employees. So if you find managing your finance complex, you’re definitely not alone! 

As a matter of fact, a report suggests that 83% of businesses fail due to cash flow problems, an example of poor financial management. The good news is that there's a solution to this problem – ERP systems!

ERP stands for Enterprise Resource Planning, which is a software solution that can automate and streamline various business processes, including financial management. It's like having a personal finance manager for your business!

According to a survey by Ultra Consultant, implementing ERP has helped businesses reduce their IT cost by almost 40%. That's a significant decrease!

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So, how exactly can an ERP system help you improve your financial management? Well, we've got five ways for you! From real-time data analysis to reducing errors and improving budgeting, these tips will take your financial management to the next level.

Whether you're a small business owner or a CFO of a large corporation, implementing an ERP system can provide you with a competitive edge and enhance your financial performance. So, let’s dive into how ERP can transform your financial management practices.

1. Control Your Finances In A Better Way 

The first step to proper financial management is having full control over your finances including accounts receivables, accounts payables, debts, investments, bills, miscellaneous expenses, etc. 

ERP systems can significantly improve financial management for businesses. In a survey conducted by Panorama Consulting Solutions, 53% of respondents reported improved financial reporting after implementing an ERP system. 

One of the ways in which ERP can help businesses achieve better control over their finances is through real-time data analysis. By providing up-to-date financial information from different departments, businesses can make informed decisions quickly, saving time and reducing errors. 

ERP can also improve budgeting and forecasting by providing a centralized platform for creating and managing budgets. This enables businesses to keep track of their expenses and revenues, make necessary adjustments, and create accurate and realistic budgets. Another benefit of ERP is streamlined financial processes, including accounts payable, accounts receivable, and payroll. By automating these processes, businesses can reduce the potential for errors and increase efficiency. 

Finally, ERP can help businesses comply with financial regulations and industry standards by automating compliance processes and providing accurate and reliable financial data. These benefits combined make ERP an essential tool for financial management in businesses, whether small or large.

2. Get An Analytical Overview Through Reports 

Wouldn’t it be amazing to get all the financial data including your revenue, expenditure, investment, and profit in the form of interactive and visually appealing reports? Well, ERP systems can make this possible for you. 

ERP systems can integrate data from various departments, providing a comprehensive view of the business. Real-time reporting, customizable reporting options, tracking key performance indicators (KPIs), and offering drill-down functionality are some ways in which ERP can help businesses get an analytical overview through reports.

Customizable reporting options allow businesses to generate reports that are specific to their needs while tracking KPIs such as sales growth, profitability, and inventory levels providing a comprehensive view of the business's performance. Drill-down functionality allows businesses to analyze data at a granular level, identifying trends and patterns to help businesses make informed decisions.

3. Automate Financial Processes 

Managing finance has been a major pain point for businesses forever! And what makes financial management such a pain? It is the manual data entry errors, lack of visibility into financial data, and inefficient financial workflows. An ERP system can address these pain points by integrating data from various financial systems, providing real-time reporting, and automating financial workflows.

Automating your accounts payable and receivables with an ERP solution can also help you save your overall expenses. According to a study, automation can help you save $16/invoice for accounts payable while another study suggests that you can save up to 85% when you automate the accounts receivables process. 

You can also easily automate month-end reports, closed deals, monthly collections, etc., and save a lot of your team’s time and energy. 

4. Reduce Errors 

Financial tasks such as data entries, keeping records, and maintaining accounts can be pretty daunting when done manually. Plus, maintaining these tasks manually can leave a huge scope for errors! 

However, your company’s finances are not exactly the department where you can get away with even the smallest errors! ERP systems can help reduce finance-related errors in several ways. For starters, it can integrate all financial processes into a single system, which helps eliminate errors due to manual data entry or duplication of data. 

Automating financial processes like invoice processing and payment processing, it reduces the risk of errors occurring due to manual intervention. Another advantage is that ERP systems can provide real-time financial reporting, so businesses can quickly identify and correct errors, minimizing the impact on financial statements and avoiding costly financial penalties. 

To sum it up, traditional financial management systems can be complex and challenging for businesses to manage, resulting in cash flow problems and other financial issues. However, ERP systems provide a solution that can transform financial management practices and provide businesses with better control over their finances. With real-time data analysis, automated financial processes, and customizable reporting options, ERP systems help businesses reduce errors, improve budgeting and forecasting, and streamline financial processes. 

By automating compliance processes and providing accurate and reliable financial data, businesses can comply with financial regulations and industry standards. ERP systems are a must-have tool for financial management in businesses of all sizes, and their implementation can lead to significant cost savings and improved financial performance.

So, if you're struggling with managing your finances, consider implementing an ERP system to help you take control of your finances and make informed decisions for your business's success.

And when it comes to an ERP system, what’s better than OneHash’s all-in-one ERP?

OneHash is an all-in-one ERP solution designed to streamline and automate business processes. With features such as financial management, sales and purchase management, inventory management, and HR management, 

To know more about our solution, book a demo with us here!

-Blog written by Anand