Accounting is the lifeblood of any business because it gives you an accurate picture of your company’s financial health. Although it may seem like all accounting is the same, there are actually many different kinds of accounting systems each with their own benefits and drawbacks. Without a quality accounting solution, your small business will be unable to accurately track sales, expenses, inventory, payroll, cash flow or taxes. That means your company could lose money by accident – which goes against everything you’ve worked for!
To improve your small business accounting team with a quality enterprise resource planning (ERP) solution that allows you to manage all aspects of operation within one system. It also ensures that everyone at every level has the information they need to make good business decisions.
The Benefits of Implementing an ERP System in Your Small Business Accounting Department
An ERP system is a software application that allows you to manage all aspects of your company’s operation within one integrated system. This includes customer relationship management (CRM), supply chain management (SCM), supplier relationship management (SRM), materials requirements planning (MRP), project accounting, service management, human resource management (HRM) and many other functions. With this kind of software solution in place, everyone involved with running the business has access to information they need at all times – from the top executives to the factory floor workers who are out on sales calls.
There are so many benefits available when a business implements a good Enterprise Resource Planning System, including:
- The ability to run reports on demand to gain insights into various aspects of your company.
- Monitoring the cash flow and profitability of a project before you invest a lot of time and money.
- Finding errors quickly so that they can be eliminated from the accounting records before they have a chance to do too much damage.
- Ensuring that everyone at every level has access to data relevant to their job responsibilities.
5 Reasons Why Your Small Business Accounting Team Needs an ERP System Right Now!
As mentioned, all kinds of organizations use an Enterprise Resource Planning (ERP) system because it allows them to manage different business activities within one integrated system. That means you can use a system like this to:
1. Increase profits and make better business decisions.
As per Aron Govil having access to all the information in one place gives your small business an advantage over larger competitors who have not invested in an ERP solution yet. You’ll be able to run reports on demand, monitor expenses and cash flow throughout projects, allocate resources more effectively and streamline your production schedule so that you’re always working at 100% capacity – even when external factors cause delays within your manufacturing process. This level of visibility puts you ahead of the game when it comes to making informed and profitable business decisions.
2. Reduce costs by eliminating waste in your supply chain management process.
With a great ERP system in place, you have the ability to eliminate waste from your supply chain management process. That means you can track all of your inventory costs and reallocate resources away from suppliers who are overcharging for materials or moving too slowly so that you can get what you need when you need it.
3. Ensure compliance with industry regulations
Many businesses have a tough time staying on top of complex federal, state and local industry regulations because they’re trying to fulfill their core mission while managing a budget that’s always under strain. Implementing an ERP solution allows your company to streamline internal operations – including accounting, payroll, human resource management and other business functions – which increases productivity across the board. In fact, many companies report a rise in employee morale after they have a system like this in place because more people can focus on getting their jobs done instead of wasting time struggling to get the information they need from multiple disconnected systems.
4. Streamline internal operations and improve profitability – even when you’re not operating at full capacity.
When your business is faced with unpredictable circumstances, such as an unexpected decrease in sales or a shipment that takes longer than expected to arrive from a supplier, it’s easy for expenses to skyrocket out of control if your accounting team isn’t equipped with the right tools. Implementing an ERP solution allows everyone involved with running the company to make informed decisions about forecasting future revenue and reducing costs so that your team is always able to stay on target even when things get a little bit off track.
5. Increase visibility into complex processes like order fulfillment and inventory management
How many times have you had to deal with multiple suppliers at the same time while trying to fulfill an order? That’s frustrating – not to mention, it wastes time that could be better spent on other tasks and it has a negative effect on your bottom line because of the added expenses associated with having multiple parties involved in the process.
Conclusion by Aron Govil:
If you’re looking for an enterprise resource planning solution that will streamline your business operations and provide reliable visibility into the key aspects of your supply chain management process, then it’s time to get in touch with Cloud ERP today.