The Growing Need for ERP Systems

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The Growing Need for ERP Systems

CFO Tech Outlook | Monday, January 10, 2022

With the innovation of technology to meet the changing business demands, ERP systems offer businesses great value and better operational management.

Fremont, CA: Companies are finding more value in total enterprise management systems as more ERP systems integrate into the cloud. ERPs enable a business to collaborate and interact with a wide range of enterprise cloud apps, analytics, and warehouse management software. ERPs have also proven to be useful for gathering and sending data between enterprise cloud applications in order to manage essential business operations using KPIs and dashboards. ERP systems are always evolving to provide useful company data, particularly for financial teams and workflow management, as technology evolves to meet the needs of modern enterprises.

What is the importance of financial planning with ERP systems in an organization?

Financial data planning and forecasting are essential because it helps management to compare the state of the organization's current finances with the forecasted financial data and let them know where the company stands with its financial performance—using ERP guarantees that the data collected is correct, which is critical because a financial forecast is only as good as the data collected.

Gathering real data and assessing deviations has traditionally been a time-consuming job that diverts attention away from financial planning's primary role of forecasting. By implementing an ERP system, an organization may streamline these operations and save time for its financial staff. ERP software can be configured to forecast and record data, configure actuals into financial planning models, and provide variance reasons through financial planning training.

ERPs help businesses ensure accuracy. By increasing accuracy, ERP software can streamline an organization’s financial processes and reduce its overall expenses. ERP systems bring together all of a company's financial and business data, allowing users to get a holistic perspective of their operations and uncover insights that might otherwise go unnoticed.

ERP systems ensure that all regulations are met. Currently, finance teams rely on ERP systems to assure adherence to government data, operations, and transparency laws. Quality ERP systems are fully connected with a company's critical back-end data, such as sales units, order management, shipping, receiving, and manufacturing. ERPs can assure compliance with a variety of safety and financial laws. Companies can be notified about vendor recalls and unexpected financial spending patterns through customization. As a benefit of cloud integration, financial professionals can monitor data in real-time from anywhere in the globe, ensuring efficiency.

ERPs allow for real-time data insights. Transactional data can be made available for instant inspection via real-time dashboards in ERP systems. Financial teams now have total financial visibility over a company's receivables and payables due to expanded capabilities. They can also get a complete picture of sales predictions, inventory levels, and bookkeeping features, which helps to assure profitability.

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