An effective Enterprise Resource Planning (ERP) system is capable of positively impacting nearly any aspect of your business. With SmartB, this is particularly true in the area of streamlining your accounting, since it helps you to manage your company’s financial health.
With accounts receivable, purchase and capital management, bank reconciliation and tax management, an ERP system supports the bottom line of your organization. ERP systems allow you to analyze your company costs and associate these with various aspects of your company at ease.
Review and Predict in Real Time
When you have your finger on the pulse of your company’s financials, you can more easily manage each aspect of your business accounting process. This includes the ability to review specific aspects of your business at any time, including:
- Projects, budgets, forecasts and categories
- Costs by size, hours, quantity, unit and more
- Historical cost variance reviews
- Cost flow analyses
- Rear-facing impact reviews
- Forward-looking predictions
ERP software is beneficial in managing costs through detailed reviews. It offers you the ability to scale inventory, accounts receivable, accounts payable and production to exact specifications. You can more effectively balance costs over time and tweak your configurations to meet ideal financial environments.
When you can speculate and predict accurately, you can create a more successful financial plan. Current cost analyses and historical reports can be used to compare alternate costs and budgets to find the best balance, with an effective ERP system.
You can also create the best benefits to provide your stakeholders with accurate predictions of profit, since ERP allows you to report profitability accurately. Having the ability to report profitability information down to product and customer levels means that your stakeholders will be able to make more informed decisions, positively affecting every aspect of your business.
ERP software is helpful to your accounting department, allowing it to manage payroll, accounts receivable and accounts payable, processing this information into usable reports. Accountants can predict, review, categorize and classify, and provide predictions and reports that your stakeholders can digest. You can leverage the information to make revisions and changes that will provide your business with a more profitable financial plan for the future.
With SmartB, your business can streamline and then automate manual practices in its accounting. Customization capabilities and comprehensive automation will help your accounting department to provide real-time, accurate data to key players in your business. You’ll also be able to produce specific financial data and keep an eye on cost comparisons. This all helps you to plan for your company’s future success.
Management of Variance
ERPs assist your company in setting standards. When you take the cost of manufacturing, along with related expenses and provide a clear baseline, then expenses for any company project are easy to review and adjust as needed.
Since ERP allows you to swiftly identify and then address variances in cost as compared to your budget, you can determine why the variance occurs and remediate the problem, before it starts cutting into your profits.
With ERPs, you can review costs over a specific time period, or according to specific classifications. This will allow you to reference multiple cost balances and create cost tables that help in analyzing cost allocations and making decisions that are better informed.
The streamlining of your company accounting is just one reason for implementing ERPs, since they help to eliminate some elements of human error and offer a brighter financial future for your business.