10 key benefits of ERP for financial management

10 benefits of ERP for financial management

The use of ERP (Enterprise Resource Planning) has become widespread in the business sphere. Not surprisingly, the benefits are manifold, including in the financial sphere.

SAP Business One solutions provide functionalities for purchases, sales, stock management, customer management and financial management. So here you have the possibility to work successfully from different fields.

We will focus on the latter issue and the advantages it provides, beyond the possibility of taking overall control of all operations:

1. Automation of financial processes

The automation of financial processes is one of the main advantages of working with ERP for financial management. This solution integrates with bank accounts and also allows invoices, balance sheets and profit and loss accounts to be prepared in real time. Moreover, you won't have to throw away the work you've done because the rest has been previously recorded. Therefore, you will work in this way by automating processes and progressing gradually.

2. Simplification of operations

Simplifying operations is another feature that makes a difference. It is not for nothing that automation facilitates simplification. Fewer steps have to be taken to do the same thing and this cuts down on procedures. Simplification, without making operations worse, is an aspect to be taken into account by the manager.

3. Savings in the use of the work factor

The use of ERP for financial management is undoubtedly a labour-saving factor. And this is extensible to any ERP, as it substantially reduces the procedures that need to be carried out. Therefore, this is a good way to save costs. In addition, and this is also worth saying, you will be able to use the available labour factor in those activities that generate value, eliminating unnecessary bureaucracy.

4. Optimisation of resources

Optimisation of resources is another advantage for financial management. As all the information is centralised, it is possible to make the most of the data and make appropriate modifications. On the other hand, this ensures that resources are used in the right and necessary way in each case, thus avoiding waste. In the end, it's all about getting more with less.

5. Improving planning capabilities

Information, undoubtedly, is power, and if it is ordered, so much the better. This ERP allows you to view your statuses in real time, but you can also view the history, which provides information on possible future developments. In short, and although there is always a margin of error, this is an element that should not be disregarded in order to plan better. The fact that the data are presented in an orderly and easy-to-locate way by their distribution in fields facilitates the work.

6. Improved visibility

Visibility is clearer and simpler with these types of tools. It is worth noting that the ERP interface is user-friendly, which improves visibility. This issue must be given the importance it deserves, as a cumbersome or not user-friendly ERP will make day-to-day operations difficult. As a result, it is easier to carry out operations, and that is always something to be appreciated.

7. Integrated work with other departments

Integrated work with other departments is precisely one of the main advantages of ERP. And no one is unaware that interacting from financial management with purchasing, sales, stocks or CRM is sometimes necessary. Here you can do this immediately and without having to change device, provided you have activated the corresponding module. This function provides scalability and, of course, adaptability in different contexts. For this reason, having a company that can provide these solutions gradually is interesting, because you will not spend so much.

8. Possibility of working in different currencies

Companies, including SMEs, importing and exporting, sometimes need to work with different currencies. This means, therefore, that with an ERP for financial management you can automatically perform the conversions and apply them to your invoices or balance sheets, if necessary. This eliminates the confusion factor that is sometimes generated when working with foreign currency. In short, this is a good way to improve your everyday operations.

9. Instant report generation

Instant report generation is another feature you can expect from ERP for financial management. You can focus on a particular aspect, such as the balance sheet, bank statement or journal entry and generate a report automatically, as well as other data of interest to you. You can also print them on paper if you wish. This is especially useful if you want to have certain information at the time of the request.

10. Reduction of the error factor when making decisions

Reducing the error factor is another aspect that helps you make decisions. It is not surprising that the lack of coherently ordered data is one of the reasons for errors in decision-making. Furthermore, the accuracy with which transactions are recorded also reduces the human error factor. Therefore, it is an interesting investment because the quality of data is fundamental to being competitive.

Conclusion on ERP for financial management

ERP for financial management, for many reasons, is a solution that will help you improve your company's results, and the opportunity to do so is there. At SEIDOR One we offer several ERP solutions with SAP Business One. Contact us to find out more about the different items available!