ERP Accounting Software: A Comprehensive Guide for Modern Businesses
Overview – ERP Accounting Software
Accounting is often treated as a dull job. But one has to agree that it is a vital operation, catering to immense data. Accuracy of financial data can make or break a company. It has become imperative for every company that wants to ensure and strengthen its financial health, to incorporate technology that supports accounting tasks. ERP accounting software solutions help small and mid-sized businesses track their finances, draw plausible budgets and fuel their growth. Such robust solutions are capable of providing the features and reporting functions accountants need.
What is ERP Accounting Software?
ERP is the acronym for enterprise resource planning solution. It is a business management tool that simplifies, streamlines, and automates business processes. An ERP accounting solution is no different. However, it is dedicated to one particular business function that oversees and manages financial activities. Most accounting software solutions can be integrated with other tools catering to different business processes. Third-party integration improves operations, stores data in a central platform, and ensures enhanced productivity.
ERP Accounting Software vs. Normal Accounting System
For decades, companies have been relying on normal accounting systems. So why should you shift to ERP accounting software? The merit of a new-age accounting ERP over a traditional accounting system is endless. But the best way to answer the question is a quick comparison between both systems. The following five points highlight their differences:
Industry Specific Application
An accounting system does the basic accounting functions at a broad level but lacks industry-specific features. The ERPs, however, can support operations at broad as well as narrow levels. These solutions have industry-specific features. You can also customise these if any capability is missing.
Sales and Customer Support
Accounting systems only do one job accounting and financial management. Hence, you have to maintain other software like CRM solutions on the side. Third-party integration is rarely an option. However, accounting ERP puts an end to maintaining multiple systems and scattered data. Whether it is hosted on a cloud or installed on-premise, ERP accounting systems let you sync accounting with CRM tools, which benefits sales and customer support.
Real Time Data and Business Intelligence
There is a glaring dearth of real-time data and business analytics in accounting systems. There is a limited variety of data and insight that these systems can produce. But accounting ERPs provide real-time data around the clock, and business intelligence unearths deeper insights that help in data-driven decision-making. Through BI, you can also predict trends with more accuracy.
Accounting software systems have a limited scope for workflow automation. Therefore, employees need to engage in repetitive and mundane tasks. Thanks to ERP accounting solutions, you can automate various workflows and link different inter-departmental activities such as risk management, project budgeting, procurement, inventory management, communication and more.
Accounting software will only give you a narrow overview of the accounting department and its activities. Siloed data often leads to poor decision-making. On the other hand, the ERP will let you view financial data alongside other vital elements such as product lifecycle, customer relationship, business forecasting and employees.
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What are the Benefits of ERP Accounting Software?
By implementing an ERP accounting system, your company can enjoy an array of advantages, including:
Manage all Accounting Activities on a Unified Platform
ERP accounting software enables your teams to create a central data repository by gathering data from different departments. It helps in eradicating siloed data. Every member in the value chain that has proper access permission can access vital information on one platform. ERP implementation eliminates the need to maintain multiple software.
Gives Access to Real Time Data
Accounting ERP solutions give access to real-time data from all departments. Therefore, you can check and monitor all kinds of data under one platform.
Intelligent ERP accounting software reduces errors in accounting producers and automates different accounting and financial management operations. Hence, your business can enjoy enhanced productivity and more output in less time.
Enhances Collaboration Among Teams
Modern accounting solutions allow different teams from various departments to share crucial information and stay connected at all times. Accurate and timely information sharing can help your company realise its revenue and profit goals and resolve bottlenecks. The ERP brings all teams under one platform.
Improves Customer Satisfaction
ERP accounting software helps your business get a deeper insight into customer data, how it impacts your revenue and improves customer relationships. It helps in preparing, monitoring and sharing customer statements and customer invoices.
Prepares Detailed Reports
Reporting is an important task in accounting. A robust accounting ERP lets you prepare detailed reports and presentations to effectively communicate financial positions, profits and losses and other crucial information.
Increases Data Accuracy
Earlier, most accounting tasks were performed manually, such as data entry, calculation, etc. These would lead to erroneous data and huge blunders. An intelligent ERP accounting system has various functionalities that improve data accuracy and eliminate manual tasks and the chances of human errors.
Helps in Automation
The ERP accounting solution interlinks various departments and automates several tiresome business processes, such as manual data entry and calculations. Process automation significantly contributes to eliminating errors and stores accurate and up-to-date information.
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Key Features of ERP Accounting Software
An ERP accounting system comes equipped with robust features enabling companies to attain their productivity and profit goals. The important core features are:
It is an important but basic feature of the ERP accounting software. The general ledger gathers and stores all financial transactions, including costs, income, capital value and assets. This module can be integrated with different activities and procedures like procurement, cash flow management, etc. It gives financial managers sufficient financial data to analyse and prepare reports.
The asset management module lets you manage fixed assets and related accounting functions such as depreciation, disposal, taxation, compliance requirements, and fixed asset valuations. You will have a greater understanding of fixed asset utilisation, associated expenses and upkeep connected with them.
Account Receivables and Payables
The account receivable and account payable module lets you monitor the cash flow between you and your customers effectively. These capabilities help you automate processes, including preparing financial statements, creating periodic invoices, and sending payment reminders. The account receivables module lets you obtain financial analysis and statement reports. Whereas the account payable module records the current supplier bills, authorises and tracks incoming invoices.
Cash Management is an important capability of ERP accounting software. Its primary role is to help you process and analyse all the cash flow over a set period. Through third-party integration, you can link your bank accounts with this module to automatically track your bank reconciliation statement. The module allows you to comprehensively study the cash flow, determine your financial position, and understand where you stand in terms of meeting your financial objectives.
Every ERP accounting software has a risk management functionality. It helps your company forecast, estimate, and manage the predictable risks in the financial sector. It takes into account various scenarios ranging from financial difficulties to calamities. The risk management module can handle other uncertainties, such as security concerns, legal liability, compliance, and reputational threats. This module will monitor your cash flow in and out of business automatically and correctly; thus, you can track and check if there are any problems, find out the reasons and deal with these issues.
Who Uses ERP Accounting Software?
Simply put, an ERP accounting system is for all! Whether you are a small business working in the retail industry or a dedicated accounting firm, accounting functions are an indispensable activity at all organisations. It facilitates decision-making, planning and forecasting business growth trajectory.
These business management tools offer scalability, flexibility and customisation options. Hence you have the liberty to decide the functions and modules that are perfect for your organisation’s needs. As a small business, which accounting ERP is the best suited for you?
Which is the Best ERP Accounting Software for Small and Mid-size Businesses?
Gone are the days when ERPs were made only for large enterprises. ERPs have become a necessity for all companies, irrespective of their size. While there are plenty of options available in the market today, Odoo is rapidly gaining popularity amongst small and mid-level businesses.
Odoo stands for On-Demand Open ERP and was launched in 2005. One of its unique features is that, unlike other ERP solution manufacturers, in Odoo, there are no dedicated software solutions for each business operation. However, it is a comprehensive suite of business software that can be integrated with other apps and solutions.
Odoo’s accounting module has various broad and additional capabilities, including general accounting, third-party integration, email templates, outstanding payment reconciliation, online payments, customer statements, budgets, payroll and valuations. Odoo is an inexpensive ERP accounting software loaded with advanced functionalities that help companies achieve their short-term and long-term financial goals.
Silver Touch- Trusted by Finance Professionals as the Best ERP Accounting Partner
Being in the ERP business for several years, Silver Touch Technologies has been a trusted ERP partner to various small and mid-level companies. Our pool of ERP professionals has hands-on experience in selecting the ERP, data migration, customising and implementing accounting and finance management solutions for clients across various sectors.
Furthermore, equipped with strong technical prowess and requisite sought-after industry skills, our Odoo experts examine the client’s readiness to adopt ERP accounting systems, offer bespoke solutions to manage a wide range of business risks and deploy the ERP software solution. We also offer consultation and training services. Want to know more? Contact us today!
Conclusion – ERP Accounting Software
Companies that want to stay future-ready are riding the wave of modern ERPs and transforming their business for the better. Odoo ERP accounting is popular amongst new-age businesses that are striving to pave the way toward long-term growth. Are you ready to improve the transparency and efficiency of accounting processes and gain greater visibility into the cash flows, assets, payables and budgets? It is time to shift to Odoo ERP.