Many companies began using enterprise resource planning (ERP) systems rather than spreadsheets or accounting packages recently.
Do you know why? it is because an ERP system differs from those systems in that accounting systems only perform accounting-related tasks. An ERP system, however, is essentially a suite of software packages that can perform accounting, procurement management, manufacturing, inventory management, sales management, human resources, and other business Operations. It handles not only accounting tasks, but general business management operations as well.
Simply, an ERP system is a more powerful business management platform.
Here are some benefits for implementing an ERP to your organisation
Businesses infrequently grow and develop following an orderly path. Employees and departments find needs over time and develop solutions, often with little reflection of the needs of other departments. For instance, Spreadsheets are an excellent symptom of those disorderly changes. A spreadsheet is easy to create and many have the basic skill to create quite complex sheets. They are notably complicated to manage and share within the enterprise.
ERP provides an opportunity to eliminate spreadsheets as the data and information required for any user or department will be within the same database system and exposed to all through common business intelligence reports, dashboards, and reports.
Whether the workaround was a spreadsheet, an external database, or papers in file cabinets, ERP will help your company stay in tune as all will sing from the same rhythms of music.
Compliance requirements for a business come in various forms. For example, Financial Standards that require specific formats and content for your financial statements. ERP systems are nowadays used everywhere and the vendors put much effort into maintaining high quality and agreement to GAAP(Generally Accepted Accounting Practices) in all the developed countries. Even if your business has some unique disclosure requirements, ERP provides you with custom reporting tools to meet your needs.
Today’s ERP systems all provide a common interface within each module. This makes training users much faster and enables a business to quickly retrain in other systems as needs evolve. Besides, screen interfaces are designed to quickly and efficiently input the transactions. The same screens are customizable, too, enabling further improvements in transactional efficiency. Often a series of related transactions in different departments can be combined using workflow tools. All of this means users spend less valuable time performing the transactional details of their work and can spend more time in ways that benefit the business and build profits.
Managing data in a single location, but distribute accountability all across the business, one surefire way to derail data integrity is to manage it across multiple locations, opening the door to an inconsistent and unproductive governance process.
When you have multiple departments entering data into multiple disconnected systems, you will more than likely end up with data that are inconsistent and unreliable. An ERP system helps to eliminate this problem. You will no longer need to manually transfer data between systems, reducing the risk of human error.
To build a sustainable, scalable company in today’s business environment, you need to use tools that help you streamline tasks, boost productivity, and leverage data in real-time. The right ERP system can put you on the right track. Ready to make the investment? Read how ERP in place can help your good organization to grow and scale to the extent that you will be thankful for your investment.