An ERP financial management system can be a great asset to a small or mid-sized business. If you’ve outgrown a typical accounting program, it may be time to consider an ERP.
ERP systems combine data from multiple sources into one visible dashboard, ensuring 360-degree visibility and data transparency. They eliminate data silos and, if a cloud ERP is used, provide accurate and timely data. This real-time visibility can make or break your growth, giving your company a competitive advantage.
If you are considering an ERP financial management system, ask yourself the following five questions. The answers will help determine if you need an ERP financial management system.
Will My Company Benefit from an ERP Financial Management System? Five Questions to Ask
- Do We Need a Better Multi-Vendor Payment System?
Almost every small and mid-sized business deals with multiple vendors. However, working with many vendors means spending minutes or hours each month paying bills, reconciling invoices to purchase orders, tracking down invoices, gaining approvals, and more.
A robust, modern ERP financial management system can make multi-vendor payment processing a breeze. Most newer ERPs have some form of AI-based automation, which can help with routine tasks such as routing approvals and matching invoices to purchase orders. These time-saving features can add a great deal of efficiency to an SMB.
- Could We Benefit from Automated Date Tracking and Reminders?
Have you ever forgotten to pay a bill on time? Most of us have. Things get busy, and we set aside things to do, like paying bills. However, with a good ERP financial management system, you’ll have an added helper by your side in the form of automated reminders to pay bills. ERPs can track due dates and run AP and AR aging reports. These reports offer insights into outstanding balances and past-due accounts, ensuring timely payments and utilizing vendor discounts.
ERP systems automate the multi-step task of approving both AP and AR invoices. This includes reconciling vendor bills against purchase orders, sending bills for review and approval, and reconciling bank transactions. With an ERP, the entire process becomes streamlined and efficient, reducing reliance on manual efforts, emails, and spreadsheets.
- Can an ERP Help with Effective Cash Flow Management?
Effective cash flow management is vital for covering expenses and fostering business growth. An ERP centralizes powerful cash management functionalities, allowing you to utilize near real-time data for a complete picture of your current cash position. Automated payments to vendors optimize cash discounts and balances, while centralized reporting and departmental insights enhance overall cash flow management.
- Will It Improve Communications?
An ERP, by its very nature, enhances communications across teams. The silo-busting effect of a good ERP ensures that every team has access to the same data. There’s no need to hunt down a report sitting in a file on someone’s computer for the latest figures; the ERP contains all the information you need.
Accurate, timely data enables cross-team collaboration, better decision-making, and improved communications.
- Can It Help Us Monitor Costs?
An ERP solution with integrated AP and AR capabilities goes beyond routine accounting tasks. It proactively monitors and flags rising costs, enabling you to manage cash flow based on real-time, accurate data. This data-driven approach replaces budgeting based on hunches with precise forecasts, reducing risks and enhancing financial planning.
Many SMBs Benefit from an ERP
Embracing an ERP empowers SMBs to navigate their accounting and financial management challenges with ease. Adding modern ERP systems to your suite of technology tools enhances efficiency and contributes to the overall financial health and success of small to mid-sized businesses.
Learn more about Acumatica ERP on Emerald TC.
Explore Sage ERP on Emerald TC.
Emerald TC carries software for manufacturing automation, financial reporting, inventory tracking, and more. We can help you choose the right accounting software, ERP system, payroll, or other software for your needs. Contact us or call 678-456-6919 for more information.